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U.S. Presses Canada to End Provincial Alcohol Bans as Boycott Hits American Exporters

Trade officials are tying the provincial bans to the USMCA review to pressure Ottawa.

Overview

  • U.S. Trade Representative Jamieson Greer warned that lifting the provincial bans is a condition for a successful USMCA review this year.
  • Provinces including Ontario, Quebec and British Columbia removed U.S. wine and spirits from government-run stores last year; Alberta and Saskatchewan kept selling them through privatized retail.
  • U.S. Department of Agriculture data show October wine exports to Canada fell 84% year on year and spirits dropped 56%, while industry filings report a 91% plunge in bilateral wine trade since 2024.
  • Companies report steep losses: Brown-Forman says Canadian net sales are down more than 60%, Phillips Distilling reports roughly a 70% drop and shifted some production to Montreal, and Jim Beam paused output at its main Kentucky distillery citing weaker demand.
  • Nanos polling indicates 73% of Canadians support keeping U.S.-made alcohol off store shelves, signaling strong public backing for the ongoing boycott.