The US spirits industry has given Canada’s move to remove tariffs on imports a guarded welcome.
On Friday, Mark Carney, Canada’s Prime Minister, said the country would lift tariffs on US goods covered under the CUSMA free-trade deal.
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The move means US spirits imports will not be subject to a 25% tariff from Monday (1 September).
Canada imposed the tariff on imported US spirits in March in response to levies placed on Canadian products by Washington.
The move by the US prompted Canadian provinces to remove US products from liquor store shelves.
The provinces of Alberta and Saskatchewan started allowing the sale of US alcohol again in June but others, including Ontario, still do not sell products imported from south of the border.
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By GlobalDataChris Swonger, the president and CEO of US spirits-industry trade body DISCUS, called Carney’s decision “a very positive sign” but added: “Until all provinces put American spirits back on their shelves it won’t have much of an impact.
“The unfortunate decision to remove American spirits from Canadian retail shelves is not only harming US distillers but it’s also needlessly reducing revenues for the provinces and placing unnecessary burdens on Canadian consumers and hospitality businesses.”
Last month, Canadian industry association Spirits Canada said sales of US spirits north of the border had fallen by more than 66% since provinces began pulling American products from shelves until the end of April.
The trade body said total spirits sales were down 12%.
“The North American spirits sector is highly interconnected and the immediate and continued removal of all US spirits products from Canadian shelves is deeply problematic for spirits producers on both sides of the border,” Cal Bricker, the president and CEO of Spirits Canada, said.
Just Drinks has approached the Liquor Control Board of Ontario to ask if the government-owned corporation plans to resume the sale of imported US spirits.
