A Summerland winery owner says it is more affordable to sell its wine in the United States than to sell inter-provincially.
Ron Kubek, owner of Lightning Rock Winery in Summerland, says internal tariffs and markups imposed by provincial governments make it more difficult to do business between provinces than internationally. He said the taxes imposed by Alberta, Ontario and Quebec are especially challenging.
鈥淓ven with U.S. import tariffs, it鈥檚 more affordable to sell into the U.S. than into other provinces,鈥� Kubek said. 鈥淭hat鈥檚 not just bad policy 鈥� it鈥檚 un-Canadian.鈥�
After a cold snap in January 2024 wiped out most of the winery鈥檚 estate-grown grapes, Lightning Rock bought wines from Washington State and launched its Cross Border Collection. These wines were crafted with U.S. grapes, but made entirely in Canada.
He said foreign wines are treated more favourably in Canada than wines made in a different province than where they are sold.
鈥淧rovinces impose internal markups as high as 140 per cent on Canadian wine,鈥� he said. 鈥淵et imported wines from France or California don鈥檛 face the same kind of domestic discrimination.鈥�
He described the inter-provincial markups as taxes imposed by 鈥�10 little countries here鈥� rather than trade within one country.
Kubek is asking for Canadian policymakers to remove the obstacles in place facing wineries attempting to sell across Canada.
鈥淚鈥檓 not asking for a handout; I鈥檓 just asking for the government to get out of my way,鈥� he said.
Kubek is not alone in his quest for better trade within Canada.
In early February, the 麻豆精选 Chamber of Commerce spoke about the importance of removing barriers to trade between provinces.
鈥淚nter-provincial trade is a problem we have been ignoring for a long time,鈥� said Maryse Harvey, president of the chamber.
The Greater Vancouver Board of Trade has also recommended lower trade barriers within Canada.
鈥淐anada鈥檚 internal trade barriers present significant challenges to economic growth, business competitiveness, and consumer choice,鈥� a report from the board reads. 鈥淒espite the existence of the Canadian Free Trade Agreement (CFTA), which was implemented in 2017 to reduce inter-provincial trade restrictions, businesses still face regulatory fragmentation, inconsistent standards, and sector-specific barriers.鈥�
At the federal level, MP Dan Albas has worked in the past to improve regulations regarding inter-provincial wine trade. He said these regulations are not consistent across Canada. Despite his efforts, inter-provincial trade barriers still exist in Canada.
