Will Canada end up being punished for the US alcohol ban?

The Canadian provinces’ restrictions on the importation and distribution of US alcoholic drinks were made in response to the trade war and tariffs the US launched against Canada last year.

The US ban was, at the time it was implemented, considered to be an “act of consumer resistance” by Canadians and saw Canada’s wine producers in no rush for US-made alcohol to return, describing the “tremendous” impact the ban was having on domestic sales. Additionally, it was levelled that the UK might also have seen some benefit from the ban as well.

CANADA Act

According to Republican Claudia Tenney, the restrictions were “discriminatory” and this has led to her introducing the Combating Attacks on our National Alcoholic Drinks by Allies (CANADA) Act.

The Act is set to see a US trade representative initiate a Section 301 investigation within 30 days into the Canadian provinces’ recent actions.

Nearly all of Canada’s liquor boards have prohibited or restricted the importation and distribution of US alcoholic drinks, a move that has impacted US producers and limited access to Canada as an export market.

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