MEDIA STATEMENT: BC Wine Institute responds to the May 25, 2018 news release issued by the United States Trade Representative titled: United States Takes Action Against Canadian Trade Measures That Discriminate Against U.S. Wine
“While not surprised given the current stall in NAFTA negotiations and the U.S.’s earlier WTO complaint against BC practices, we remain puzzled how they have been harmed as the U.S. has a wine trade surplus of $450.6 million.” said Miles Prodan, President and CEO, BC Wine Institute. “Still, we need to take their concerns seriously and we have been proactive in working with all levels of government to address the concerns of this, and other trade issues.”Prodan goes on to point out that it is important to understand that wine produced in Canada represents just 32 per cent of total sales domestically, while imports own 68 per cent of our market with the domestic economic impact of a 100 per cent Canadian wine six times greater than an imported wine – $89.99 per bottle compared to just $15.73.
The BC Wine Institute will continue to work closely with the Canadian Vintners Association and both provincial and federal government to promote 100 per cent BC wines (BC VQA), which are defined as grapes grown and bottled right here in British Columbia alongside BC’s other great agri-products.
- It is important to understand that wine produced in Canada represents just 32% of total sales domestically, while imports own 68% of our market.
- Over the past decade, imports have captured more than 68% of total wine sales growth in Canada.
- Canada is the United States’ second largest wine export market by value, after the EU.
- The U.S. wine industry access to Canadian retail is amongst the best in the world. Since the 1988 signing of the Canada-U.S. Free Trade Agreement (CUSFTA):
- U.S. wine import value to Canada has tripled to 21.4% of total imports
- U.S. wine sales market share in Canada have doubled to 14.2% (VQA wine is 10%)
- U.S. wine brand listings in Canada have experienced double digit growth over the past 30 years
- U.S. wines have experienced 13% average annual wine sales value growth in Canada, every year for the past 30 years
- U.S. bottled wine imports rank #1 in value at $60 million
- U.S. bottled wine imports rank #1 in volume at 7.5 million litres
- U.S. bottled wine imports have experienced 10% average annual wine sales value growth in Canada, every year for the past 30 years since the signing of the CUSFTA
- U.S. bulk wine imports rank #3 in value at $5.8 million
- U.S. bulk wine imports rank #4 in volume at 4.0 million litres
Sincerely,
