European Advantage in Canada

The European Union (EU) is the world's largest producer and exporter of wine and accounts for 50 percent of the Canadian market.

EU wine-producers are supported by over $US2 Billion in annual subsidies, which give them a significant competitive advantage over Canadian wineries who do not enjoy similar subsidies for domestic or export production.

European wine is effectively promoted and has strong access to the Canadian market whereas Canadian wine enjoys little if any support in the EU and its Member States.

Trade Threat

Despite these facts, the EU is considering WTO action against Canada over a small excise duty exemption that applies to 5 percent of Canadian producers' sales. This small excise measure is needed to keep Canada's wineries in business.

EU officials are aware that duty exemptions are also granted to domestic producers in the United States and Australia but so far Canada appears to be the only target.

Why is the EU singling out Canada for a potential WTO challenge, when it enjoys a growing and profitable $US 2 Billion (Statistics Canada) wine retail sales market in Canada? Their position makes no commercial sense and it is surely not about "leveling the playing field," which is already tilted heavily in favor of the EU grape and wine industry.

EU wines currently enjoy a significant and growing share of the Canadian wine retail market, exceeding 50% of retail sales. EU producers have excellent access to the Canadian market and their products do extremely well under the current regime. In short, there is no commercial basis for a WTO challenge.

The Petition

We invite you to join the 2508 people who have already spoken up and sign our petition to help support our important Canadian industry and the jobs it continues to create.