U.S. registers second WTO complaint over alleged unfair wine sales rules

As dairy products, Bombardier aircraft and softwood lumber continue to bedevil trade relations between Canada and the U.S., negotiators will have to add wine to their list of issues to resolve.

The U.S. has filed a second complaint with the World Trade Organization over what it perceives as B.C.’s unfair rules regarding wine sales in the province’s grocery stores, according to a release from the WTO.

In the complaint, the U.S. argues that local wines have an unfair advantage in B.C. due to the province’s rules that ban imported wine from grocery store shelves.

The rules dictate that imported products are relegated to a “store-within-a-store” model, separate from B.C. products and therefore appear discriminatory and inconsistent with a WTO agreement, according to the complaint.

The U.S. first raised the issue in January, but according to the WTO website, no dispute panel was established and it was not notified of either a solution or withdrawal by the parties.

“British Columbia’s discriminatory regulations continue to be a serious problem for U.S. winemakers,” United States Trade Representative spokeswoman Amelia Breinig said in an email.

The B.C. Ministry of Jobs, Trade and Technology and the Office of the United States Trade Representative did not immediately respond to a request for comment.

The province’s previous trade minister, Shirley Bond, said the government would defend the industry against the challenge when it was first issued in January.