The US Government has launched a new trade enforcement action against Canada at the World Trade Organization (WTO) alleging that British Columbia’s (BC) regulations discriminate the sale of US wine in grocery stores.

BC regulations are reported to have breached Canada’s WTO commitments and are claimed to have affected US wine producers. These regulations are being challenged by the Office of the United States Trade Representative (USTR).

USTR alleged that the regulations were discriminative by only allowing BC wine to be sold on regular grocery store shelves. Such discriminatory measures restrict sales opportunities for US wine producers and offer a substantial competitive advantage for BC wine.

"The discriminatory regulations implemented by British Columbia intentionally undermine free and fair competition."

BC regulations were amended last April to include that a grocery store may sell only BC wine on grocery store shelves, while imported wine must be sold in a section separate from the main store.

US trade representative Michael Froman said: “The discriminatory regulations implemented by British Columbia intentionally undermine free and fair competition and appear to breach Canada’s commitments as a WTO member. Canada and all Canadian provinces, including BC, must play by the rules.

"This administration is continuing to fight to level the playing field for American producers and workers, so that we can continue to grow our economy and support quality jobs across the United States.”

If the US and Canada cannot come to a mutually agreed solution through consultations, then the US may request that the WTO establish a dispute settlement panel to examine the matter further.