Spirits Canada CEO believes that Inter-provincial trade barriers significantly hamper economic growth

In an increasingly competitive global market, inter-provincial trade barriers in Canada still prohibit growth in many businesses and industries, particularly in the alcohol beverage sector. Image: Building Block Associates

TORONTO - While the alcohol supply chain continues to be siloed within each provinces' borders, alcohol producers and consumers at large are suffering. In an increasingly competitive global market, inter-provincial trade barriers in Canada still prohibit growth in many businesses and industries, particularly in the alcohol beverage sector.

Also read, Canada and EU sign historic Trade Agreement during EU-Canada Summit.

Jan Westcott, president and chief executive officer of Spirits Canada, will showcase his veteran's perspective of where and how meaningful reform can occur this week at the 5th Annual Food and Drink Summit.

In 2016, the Standing Senate Committee on Banking, Trade and Commerce, revealed that internal trade barriers account for a loss of potential revenue in the Canadian economy ranging from $50 billion to $130 billion annually.

A month later, the premiers and territorial leaders met and agreed on the principle of an internal trade deal that would help to create jobs and improve the economy. The premiers' meeting resulted in a working group to study how to improve trade in beer, wine and spirits across the country.

Westcott notes that a new internal trade agreement could make it easier for Canadian businesses to sell across Canada, a critical prerequisite to successfully competing with large food and beverage companies in other countries who have large domestic markets to support them and from which they can efficiently compete internationally.

In recent years, Canada has seen the growth of protectionist policies in every Canadian province, a situation which is becoming acute for beverage alcohol. Westcott believes an agreement that knocks down the trade barriers hampering the flow of goods and services across provincial boundaries would materially benefit both consumers and producers.

"Removing these intra-Canadian trade barriers is a critical first step in the growth of the Canadian economy," notes Westcott. "I hope more Canadian leaders and members of government realize the benefits and opportunities of inter-provincial trade." 

SOURCE Spirits Canada