Canadian winemakers have warned that local jobs are under threat after the EU issued a complaint to the World Trade Organisation.

The EU opposes a Canadian measure exempting wines made with 100% Canadian grapes from tax increases. The EU has argued the tax break illegally discriminates against European wines.

Canadian vintners argue that the measure benefits only 5% of domestic retail sales, half of which are sold at wineries.

"This is simply a matter of greed on the part of some of Europe's largest wineries," said Canadian Vintners Association president Dan Paszkowski.

"The Europeans provide more than US$2bn in grape and wine subsidies which ultimately assist European products in entering export markets," he added.