The Stars and the Maple Leaf: New growth opportunities

On 26 September, the EU Canada Summit in Ottawa should formally announce the conclusion of the historic free trade agreement between the EU and Canada – the Comprehensive Economic and Trade Agreement (CETA), further opening each market to trade.

spiritsEUROPE, the body representing the European producers of whiskies, gin, vodka, cognac, etc welcomed the deal.  Paul Skehan, director general, said:  “This is great news for European and Canadian consumers, and great news for the spirits sector in Europe.  At a time when domestic markets are difficult, export markets are providing the only opportunities for growth.  Canada is already the 5^th largest market for European spirit drinks, generating €285 million for the European economy each year, and a deal now will open the opportunity for increasing our sales there.  It would also mean greater access to quality European spirits for Canadian consumers.”

“CETA provides Canadian spirits the platform to expand and broaden sales to the world’s largest consumer market”, said Spirits Canada President and CEO Jan Westcott.  “Deep cultural and business ties between Canada and the 28 strong European Union Member States well positions Canadian Spirits exporters to grow from our current $30 million in annual sales.  The elimination of tariff and non-tariff trade barriers is the key to long-term value for both consumers and manufacturers”.

spiritsEUROPE and SPIRITS CANADA are particularly encouraged by the following key achievements:

• Full elimination of all import tariffs on spirits and wines;
• better enforcement of previous agreements with the CETA dispute settlement mechanism;
• abolition of the obligation to blend bulk spirit imports with local content;
• increased transparency in the way provincial liquor boards operate in Canada and abroad;
• restrictions on new discriminatory private liquor stores;
• protection of centuries of European culture.  Canada has agreed to recognize and protect those European products with specific geographic characteristics – e.g. Scotch Whisky, Irish Whiskey, Cognac, Grappa, etc, and;
• entrenched European recognition and protection for Canada’s signature alcohol drinks, Canadian Whisky and Canadian Rye Whisky.

Westcott: “Canadian Spirits manufacturers warmly welcome CETA as a key milestone in Canada’s aggressive trade liberalization strategy.”.  Skehan:  “We now look forward to a smooth and speedy ratification of the CETA Agreement by the European Parliament and member states.”

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