Beyond shameless, B.C. uncorks bottle of chutzpah in trade war
It’s supposed to be an oil pipeline, but these days, it’s looking more and more like a rabbit hole — and we seem to be falling deeper down it every day.
The struggle over Kinder Morgan’s $7.4-billion Trans Mountain pipeline expansion has created a constitutional muddle, endangered the national climate change plan, undercut British Columbia’s wine industry and pitted Canada’s only two NDP governments against each other.
And that was only the beginning.
Now, we have the B.C. government challenging Alberta’s retaliatory wine boycott on the grounds that one province (Alberta) should not be allowed to prevent another province (B.C.) from shipping its commercial products across provincial boundaries.
B.C.’s action has been called hypocritical. A better word would be shameless. Or even better: chutzpah.
Think about it.
While B.C. is claiming Alberta has no right to prevent B.C. shipping its commercial products into Alberta, B.C. is simultaneously saying it has the power to stop Alberta shipping its commercial product — oilsands bitumen — across provincial boundaries to the West Coast.
It gets even more odd the closer you look.
B.C. is challenging Alberta’s wine boycott through the Canadian Free Trade Agreement (CFTA).
At first glance, this seems fine. Here, for example, is Article 301 of the trade agreement signed last year by the provinces: “A province shall not adopt or maintain any measure that restricts or prevents the movement of goods across provincial or territorial boundaries.”
B.C. officials say they are seeking a resolution under the CFTA because “Alberta’s trade actions have national consequences.”
But here’s the rub: the CFTA does not include alcohol. The premiers deliberately left alcohol out of the deal because they don’t want to give up their lucrative monopolies over its sale and distribution. Instead, they made alcohol a separate issue and sent it for study to a panel with the fun title of the Alcoholic Beverages Working Group. Its report is expected in the spring.
Just to make sure everyone was on the same page, the CFTA has specific language protecting the provincial monopolies over alcohol.
Here, for example, is a paragraph dealing with Alberta: “The above measures permit Alberta to control the manufacture, import, sale, purchase, possession, storage, transportation, use and consumption of liquor, including through permits and licences that may include limitations on the establishment, operation and provision of these activities.”
Alberta controls the importation of alcoholic products via the government-owned Alberta Gaming and Liquor Commission (AGLC). This is a key issue to keep in mind. Albertans cannot simply go to B.C. and fill up a truck with wine to sell in Alberta. At least, you can’t do that legally.
The B.C. government is arguing the AGLC must buy B.C. wine. Hmm. How much wine must it buy? Alberta was purchasing about $70 million worth a year before the boycott announced by Premier Rachel Notley a few weeks ago. Is that the threshold?
More to the point, can one provincial government demand another provincial government buy its products?
The British Columbia Wine Institute certainly thinks so. It is seeking a court injunction to lift Alberta’s boycott of B.C. wine.
What’s to stop Notley lifting the boycott and having the AGLC buy just one bottle of B.C. wine a year?
There is a major difference between the wine boycott and the pipeline embargo. The Alberta government, like all the other provinces, has a monopoly to buy, or not buy, alcoholic products from another province. However, B.C. does not have the power to dictate what oil products are transported through a federally approved trans-provincial energy pipeline.
If B.C. Premier John Horgan understands this, he isn’t interested in winning a questionable appeal under the CFTA, but is focused instead on winning support from B.C. voters by appearing to be fighting back against Alberta.
The Alberta government sees Horgan’s wine complaint as a sideshow. Notley is focused on getting the pipeline expansion built.
She wants action soon on that front from Horgan or the federal government.
Failing that, she has threatened to escalate the trade war against B.C. within days. Well see then how far down the rabbit hole we’ve fallen.
What’s to stop Notley lifting the boycott and having the AGLC buy just one bottle of B.C. wine a year?