Alberta halting BC wine imports

EDMONTON (NEWS 1130) -The Alberta Government is putting an immediate halt to the import of BC wine.

The Alberta Liquor and Gaming Commission says that’s the equivalent of roughly 17.2 million bottles worth $70 million annually from BC wineries.

“The wine industry is very important to BC. Not nearly as important as the energy industry is to Alberta and Canada, but important none the less,” says Alberta Premier Rachel Notley.

“I know a lot of Albertans who love BC wine, quite frankly I’m one of them, just like I know a lot of British Columbians who love to drive their cars, fly in planes, and heat their homes using Alberta energy products.”

 

The announcement follows the BC government’s move to block further bitumen shipments, a threat to the Trans Mountain pipeline expansion — the latest move in a trade war that’s been heating up.

The $7.4-billion project, approved in November 2016 by the federal government, would triple capacity on the 1,150 kilometre line, which runs from Edmonton to Burnaby.

It’s the linchpin component of Alberta’s fight to get a better overseas price for its oil, which is currently being sold at a discount on the North American market while the province racks up budget deficits over $10 billion.

 

Last week, Premier John Horgan’s government announced it is looking at rules to limit any increase in the import of diluted bitumen until an independent panel can better analyze whether the system is safe and if it can adequately deal with a spill disaster.

Notley is encouraging Albertans to actively avoid drinking BC wine when dining out.

“Think of our energy workers, think of your neighbours, think of our communities, think of our province, and maybe choose some terrific Alberta craft beer instead.”

She says that Alberta is tired of being on the losing end each time another province decides to break the rules.

“In an effort to harass investors and to harass a project that is otherwise lawful is just not a way to run the country. So, I don’t like it.”

Notley adds they’re actively looking at additional measures in a bid to get Ottawa to step up and BC to back down.

 

“I honestly wish it did not have to be this way,” she said. “We don’t take this lightly. Albertans didn’t want or invite this fight.”

This is the second trade retaliation announced by Notley. Last week, she suspended talks to purchase electricity from BC, a deal that would be worth $500 million a year to BC.

“We did play by the rules, and we secured the approval of a new pipeline to tidewater to export energy products that support tens of thousands of jobs across this country,” Notley said.

“Alberta will not stand by and be the only province impacted by another province’s refusal to play by the rules.”

The federal government has control over the cross-boundary pipelines, and Notley has called BC’s attempt to hinder the expansion an unconstitutional attempt to get around federal approval of the project.

Meantime, Horgan has issued a statement.

“We’re making life better for British Columbians by focusing on affordability and solutions to housing and childcare. We’re working for people. As part of that work, our government has every right to consult with British Columbians on the best possible measures to protect our lands and waters from the potential impacts of diluted bitumen spills,” says Horgan in an emailed statement.

“If Alberta disagrees they can make that argument in the proper venue, in our court system. Our consultation on proposed new regulations hasn’t even begun, but Alberta has seen fit to take measures to impact BC businesses. I urge Alberta to step back from this threatening position. We stand with BC wine producers and will respond to the unfair trade actions announced today.”

Boycott a big loss for local wineries

Wineries in the Okanagan will be feeling the loss deeply. The director of sales at the Oliver-based Tinhorn Creek vineyards, Jan Nelson, says they stand to lose as much as $100,000 a month.

“It really depends on how long the stop will be and whether or not they’d be willig to sell the wine they’ve already got in Alberta,” he says.

“Alberta is one of our key and important markets. We sell 15 to 20 per cent of our production into Alberta every year,” says Nelson.

“We have a lot of visitors from Alberta every year and they hope and expect to get our wines there in market so obviously that will put a damper on that sales channel.”

Nelson adds he doesn’t understand why the wine industry is being punished because of a bun fight over oil.

“What did BC wine ever do to Alberta?”

He is, however, optimistic the winery could come up with a quick backup plan if the tiff drags on.

“If we can’t sell within Alberta I’m pretty sure we can find some deserving customers in British Columbia or other provinces,” he says, but he’s also eager to hear how the BC government plans to respond. “Hopefully it doesn’t last too long.”

New BC Liberal Leader weighs in

BC’s new Liberal leader is suggesting an escalating dispute with Alberta over the expansion of the Trans Mountain pipeline is going to end up in court.

Andrew Wilkinson’s also predicting BC’s wine industry will suffer now that Alberta’s threatening to ban the sale of our wine in that province.

“John Horgan and the NDP have decided to pick a fight with the Alberta government, they are apparently going to retaliate by hurting BC’s agricultural industry.”

Wilkinson says the two provinces have created a lose-lose situation by engaging in a ‘trade war’ across the Rocky Mountains.