Booze ban, 'buy Canadian' procurement policy identified as 'trade irritants' by U.S.
· Toronto Sun
OTTAWA — Provincial bans on American alcohol sales and governmental attempts to keep procurement dollars in Canada are among a slate of U.S. trade irritants identified in a new report.
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The report, published this week by the Office of the United States Trade Representative, listed several trade barriers perpetrated by Canada — ranging from the application of the Goods and Services Tax (GST) to U.S. exports to Canada, agricultural supply management, provincial policies banning the sale of U.S. booze on store shelves, and Canada’s “zero plastic waste agenda.”
‘Serious concerns’ over U.S. booze ban
Implemented early last year as retaliation for American trade tariffs, provincial bans on selling American alcohol remains a particularly painful thorn for U.S. trade officials.
“Market access barriers imposed by Canadian provincial liquor control boards greatly hamper exports of U.S. wine, beer, and spirits to Canada,” the report read.
“These barriers include cost-of-service mark-ups, restrictions on listings (products that the liquor board will carry,) reference prices (either the maximum prices the liquor board is willing to pay or the prices below which imported products may not be sold,) label requirements, discounting policies (requirements that suppliers must offer rebates or reduce their prices to meet sales targets,) and distribution policies.”
Alberta and Saskatchewan are the only provinces that have resumed selling American alcohol, but the rest of Canada — including Ontario, where the LCBO is the world’s biggest single purchaser of alcoholic beverages — still have bans.
Indeed, Canada’s liquor ban is having an impact on U.S. suppliers, already under pressure due to declines in overall alcohol consumption trends.
According to the U.S.-based Distilled Spirits Council’s mid-year report , provincial bans on the sale of U.S. alcohol prompted an 85% drop in distilled spirits exports to Canada, falling below $10 million in this year’s second quarter.
America’s alcohol industry relies heavily on international sales, having seen worldwide demand grow dramatically over the past quarter-century, with exports more than quintupling since 2000.
Canada, the U.K. and the European Union accounted for around 70% of all American liquor exports in 2024, valued at around $2.4 billion.
“The United States continues to raise serious concerns regarding these actions and to press Canada to ensure that U.S. alcohol beverages immediately and permanently return to all provincial and territorial markets,” the report read.
‘Buy Canadian’ policy troublesome, report says
Launched in December 2025, Canada’s “buy Canadian” procurement policy aims to prioritize Canadian vendors, workers and materials for large-scale government contracts — a measure enacted to counter aggressive “America first” trade policies.
The policy shifts “buy Canadian” from a “best effort” criteria to what the government describes as a “clear obligation” to use Canadian steel, lumber and other materials on projects over $25 million.
“Additional implementation stages are expected to expand these requirements on contracts valued at CAN $5 million (approximately $3.6 million USD) or more by spring 2026,” the report read.
“U.S. companies have reported concerns regarding additional barriers to compete for federal contracts in Canada, including being forced to share information about their boards of directors and prove their Canadian subsidiary’s independence from the U.S. parent company.”