**Canadian Winemakers Face Trade Barriers Amid Provincial Regulations** Ron Kubek, owner of Lightning Rock winery in British Columbia's Okanagan Valley, is frustrated with the political mismanagement affecting Canada's wine industry. As he prepares for this year's grape harvest, he expressed his concerns about the challenges faced by local producers. Kubek can export his award-winning Pinot Noir to Washington State without tariffs under the Canada-U.S.-Mexico trade agreement. However, accessing liquor stores in Ontario and Quebec comes with steep markups of 71% and 130%, respectively. Despite being ranked among the top 25 wineries in Canada, Lightning Rock produces only 3,500 cases annually, making it a relatively high-cost producer. To sell a bottle at the $38 retail price listed on his website, Kubek would need to wholesale it to the Liquor Control Board of Ontario (LCBO) for just $9, even though production costs him $15. Kubek criticized the provincial governments, stating, "I’d love for the premiers of Ontario and B.C. to pull their heads out of their butts. As a Canadian, I just think that it is so stupid that we tax our own stuff more than anyone else’s. Each province considers every other province to be another country." During the recent general election, Prime Minister Mark Carney emphasized the need for a unified Canadian economy, stating, "we can give ourselves far more than Donald Trump can ever take away, if we have one Canadian economy, not 13." However, the wine and spirits industry has not seen significant progress in this area. Earlier this year, nine provinces signed memoranda of understanding aimed at allowing wineries to sell directly to consumers in other provinces by May 2026. Since then, little action has been taken. Kubek described the situation as a "big nothing burger" and has begun shipping to Ontario despite the challenges. B.C., Alberta, and Manitoba have their own direct-to-consumer (DTC) agreement, but Alberta's government recently imposed a tax based on the value of wine, in addition to a flat per-bottle fee. This has significantly impacted the direct-to-consumer wine trade between B.C. and Alberta, adding $6 to a $20 bottle. Douglas Hart, president of Hart Associates management consultancy, noted that for DTC to succeed, provinces must avoid imposing additional taxes or markups on wines from other provinces. Even if DTC becomes more prevalent, it does not address the larger issue of accessing wines from other provinces in liquor stores. The U.S. has had interstate DTC for years, but it accounts for only 8% of sales. A reduction in interprovincial trade barriers could lead to the creation of Canadian aisles in provincial liquor stores, showcasing wines from across the country. There is a clear demand for Canadian wine. Canada was the top export market for U.S. wine, with sales exceeding $1 billion annually. The removal of U.S. products from shelves in various provinces has created opportunities for local producers. According to the LCBO's quarterly sales update, 31% of the $484 million in wine sold in Ontario during the first quarter of this fiscal year was Canadian, primarily from Ontario itself. This marks an increase from 23% in the same quarter last year, translating to an additional $40 million in sales. Despite this potential, the industry is hindered by outdated protectionist policies. The opportunity to build a robust Canadian wine industry remains unfulfilled as interprovincial trade barriers persist.