Provincial Deals on Alcohol Sales Contain Hidden Tariffs
The Canadian provinces have finally agreed to remove barriers to selling alcohol across borders, but it's not as smooth of a deal as it seems.
After 17 months, nine provinces (excluding Quebec) signed an agreement that will allow breweries, wineries, and distilleries to sell their products outside of their home province. The agreement came just one day after US President Donald Trump threatened to impose a 50-per-cent tariff on Canadian goods, including alcohol.
Ontario Premier Doug Ford said the deal was necessary 'in the face of President Trump's latest tariffs' and would help build a more united Canadian economy.
However, critics argue that the agreement has some major flaws. For one, provinces can charge fees or markups on products from other provinces, essentially creating their own tariffs. This could harm producers who want to sell their products across borders.
Additionally, the agreement is not legally binding, meaning that provinces can change their minds at any time.