U.S. trade czar threatens Canada over boycott that’s hurting booze makers

Liquor stores are regulated by provincial governments in Canada, and the federal government can’t force provinces to end the boycott.

United States Trade Representative Jamieson Greer said the U.S. might have to

take action against Canada

over its rejection of American wine and spirits.

Several Canadian provinces pulled U.S.-made alcohol from stores last year after President Donald Trump started a trade war,

costing makers of bourbon

and

other products

millions of dollars in

lost sales

. The list includes alcohol distributors in Ontario and Quebec, which have about 60 per cent of Canada’s population.

The boycott

was a source of bipartisan concern Wednesday at a U.S. Congressional hearing, with lawmakers from New York and California raising the issue with Greer.

“There are two countries that have

retaliated economically against the United States

in the past year: the People’s Republic of China and Canada,” Greer said. “My sense is there may have to be an enforcement action to deal with this issue on wine and spirits in Canada.” He didn’t outline any specifics.

Liquor stores are regulated by provincial governments in Canada, and the federal government can’t force provinces to end the boycott. Ontario Premier Doug Ford, who has been an enthusiastic proponent of retaliating against U.S. tariffs, said he’s willing to relent on alcohol sales — once the U.S. backs down on the tariffs hurting his province’s economy.

“I’d do it in a heartbeat folks, but when he’s destroying our auto sector, putting in jeopardy tens of thousands of jobs,” Ontario can’t change its policy on U.S. alcohol, the premier said during an event hosted by the Globe and Mail newspaper.

Ford said he wants to see issues with the

Canada-U.S.-Mexico Agreement

resolved first.

“Once we get the deal done — which I’m confident, eventually, we’ll get it done — then we’ll bring back maybe California red wine, you can sit down and have a glass of wine. I’ll have my chocolate milk.”

—With assistance from Laura Dhillon Kane.