Ontario says it’s holding firm on its ban of American alcohol products at the province’s liquor stores, even after U.S. trade representatives have said the issue is an irritant to trade talks with Washington.
The proof that the ban is having an effect comes from Washington itself. Dropping the boycott is one of the prerequisites set by U.S. trade representative Jamieson Greer if the Canada-U.S.-Mexico agreement is to be extended.
Even that is no guarantee. The agreement is up for review and President Trump has not made it clear where he stands. He has even suggested it might not be renewed.
But Ontario’s finance minister, Peter Bethlenfalvy, says the ban on American booze will remain until there is a new trade agreement.
“We’ve sent a very clear signal. You heard us. This is something that we can do,” Bethlenfalvy said. “It’s not something we want to do, but we’ve been very clear about that since day one.”
The ban on American alcohol has been in place since last March. There’s $80 million worth of U.S. booze sitting in Ontario Liquor Board warehouses. Some provinces with similar bans have sold off their American stock and donated the proceeds to charity. So far, Ontario has not followed suit.
Having Washington say it’s irritated by the ban doesn’t make much difference to Bethlenfalvy.
“Well, we’re irritated about a lot of things here,” he added. “A 50-percent tariff on steel, on aluminum, on the auto sector, on lumber. You know we’re great friends and allies, so we need to sit down and get a deal that’s good for both the United States and Canada.”
Meanwhile, Bethlenfalvy says Ontario wine and alcohol producers are reaping the benefits of the ban - a 79-percent sales increase in Ontario wines and a 33-percent jump in craft beer and other Ontario-based liquor products.
