Last month, we celebrated the 5th anniversary of the EU-Canada FTA (CETA) provisional entry into force. 5 years ago, spiritsEUROPE was one of the most vocal promoters of CETA, campaigning hard for its conclusion & entry into force. Many of you will remember the #addtheW and #CETANOW campaigns.
Five years after ratification, it is clear that EU spirits have benefited enormously from CETA, and we continue to strongly support this agreement. Our exports have increased by +20% in value for since 2017. We call on all EU Member States to ratify CETA without delay in light of the significant benefits it provides to EU exporters.
In terms of non-tariff issues, we have seen some progress, not least in relation to the cost-of-service differentials in Ontario and in Québec pursuant to the results of the latest audits requested by the European Commission. However, there are still some levels of discrimination which need to be tackled without delay in order to create fair competition between EU & local alcoholic beverages.
Existing discriminations that unfairly favour in-province alcoholic beverages producers in Canada must be tackled as a matter of priority, to ensure EU producers can compete fairly, in line with CETA provisions. Mark-up free or nearly mark-up free direct deliveries to restaurants, bars and private retail stores should not be reserved to in-province producers. Likewise, significant comprehensive mark-up discounts or tax reductions should not be offered only to in-province producers. Last but least, additional market access opportunities and routes to market should not be reserved to in-province producers.
In addition, our members have reported that they increasingly face discrimination in terms of shelf space devoted to imported products v. products produced in a given province where they are sold. They have also reported instances during which restocking can take a lot longer for imported products than for in-province products. Such discriminatory approaches taken by certain liquor boards mean that newcomers to the Canadian market face an almost insurmountable barrier to entry.
