You can’t find brands like Tito’s vodka, Makers Mark whiskey, Genesee beer or Angry Orchard cider in many of the stores that sell alcohol in Canada; in most provinces, liquor authorities have barred the import of U.S.-based brands.
It’s a response to the trade conflict and threats of annexation leveled at the northern nation by U.S. President Donald J. Trump. Congresswoman Claudia L. Tenney, R-Cleveland, who represents parts of the U.S.-Canada border region in Washington, wants to start the process of retaliating for that ban with trade sanctions, introducing a bill in Congress last week that would order the U.S. Trade Representative to start the formal investigation into the ban.
If the representative finds that the Canadian ban on U.S. liquor is legal, they can move to respond with tariffs on Canadian goods, suspending favorable trade agreements or taking the issue to the World Trade Organization.
In a statement announcing her legislation, Tenney said that the block is unfair and having negative effects on American alcohol producers, including brands in New York state.
“Canadian provinces cannot be allowed to hold American wineries, breweries and distilleries hostage and attempt to ransom them,” Tenney said. “American wineries, breweries, distilleries and other beverage producers deserve fair access to Canadian markets, not discriminatory treatment from one of our closest trading partners. Nearly all of Canada’s provincial liquor boards have unfairly targeted U.S. producers and harmed hardworking American businesses due to unrelated policy issues.”
Tenney argued that the dispute over alcohol policy is an impediment to renegotiations over the international U.S.-Mexico-Canada trade agreement, known as the USMCA. That agreement is due to be renegotiated this year, but on July 1 the Trump administration announced it would let the agreement sunset in favor of negotiations to amend the document over the course of the next 10 years; officials suggested they could end up with separate trade agreements with Canada and Mexico rather than the three-way agreement currently in place.
Tenney’s push to punish Canada over the provincial alcohol ban has the support of the Wine Institute, the American Craft Spirits Association and Wine America.
“For too long, America’s craft distillers have been caught in the middle of a trade dispute that has nothing to do with them,“ said ACSA CEO Emily Pennington. ”We appreciate Congresswoman Tenney’s leadership in bringing renewed attention to the discriminatory treatment of U.S. craft spirits in Canada and hope this legislation encourages serious negotiations that restore fair market access for American producers.”