Tariffs needed on U.S. wines, too, says industry
Despite new retaliatory tariffs being imposed on a list of hundreds of American-made products, wine continues to flow relatively freely across the U.S. border.
Canada’s wine industry, however, would likely benefit if U.S. wines were added to that list, too.
“We know the products, especially from the U.S., come in with huge subsidies,” said Grape Growers of Ontario chief executive officer Debbie Zimmerman.
“From our perspective, if there’s going to be any push-back on that … we’d love to see the Canadian product (grow),” she said. “Our market share is so minimal. We’re anxious to see the growth of our market.”
New tariffs of 10 to 25 per cent are being imposed as of July 1, on hundreds of U.S. manufactured items — in retaliation to U.S. tariffs on Canadian steel and aluminum.
The Canadian counter-tariffs — which will remain are to re-
main in place until the U.S. eliminates its tariffs on Canadian products — apply to a wide range of imports from the U.S., including steel and aluminum products, but also items like ketchup, orange juice, yogurt, coffee, and whisky.
But not wine.
Niagara Centre MP Vance Badawey didn’t rule out potential changes to the list of U.S. products facing tariffs.
At the same time, he said the federal government is working to find new markets for Canadian products.
“We’re addressing a lot of the needs of industry, of different sectors.
“We’re investing in the industry itself, for capital, for training, for (research and development), for innovation,” Badawey said.
“But we’re also ensuring that when you look at the big picture when it comes to NAFTA and world trade in general, we’re investing in sustainability.”
That sustainability, he explained, means finding new markets for Canadian products in Europe and Asia “versus being so reliant on one country, for example the United States.”
Minister of Agriculture and Agri-Food Lawrence MacAulay said he couldn’t predict if the U.S. trade dispute could have an impact on the wine industry.
“You have to be ready for everything,” he said, while visiting Niagara on Wednesday to announce research funding for the grape and wine industry.
“It’s difficult to say what trade disputes will do. What we want is to make sure we’re open trade and continue to export worldwide,” he later added.
MacAulay said the federal government is working with the industry, hoping to enhance foreign exports of agricultural products, including wine.
“We are an exporting nation and we certainly are open to trade,” he said.
“We also understand that the Americans are our best friends and our biggest customers and we want to send more their too.
“If you have the quality, they will want the product.”
Zimmerman said Canadians can still buy Canadian wine and “decide that they want to invest in Canada.”
“I encourage people to drink Ontario wine every day,” she said.