Canadian wine bottles at a liquor store in Alberta. Restrictions on interprovincial alcohol sales are often cited as the most obvious example of the challenges businesses face in trying to operate across provincial barriers.Jeff McIntosh/The Canadian Press
Canada’s internal trade ministers recommitted Monday to easing restrictions on direct-to-consumer alcohol sales after missing their original May deadline.
The federal government, which urged the provinces and territories in May to complete negotiations and meet the deadline, said the ministers agreed to have an alcohol sales framework in place soon and will meet again in August.
“Though it was disappointing that provinces and territories missed the initial implementation deadline of May 2026, efforts are now underway to ensure that the framework is in place this summer,” said federal Internal Trade Minister Dominic LeBlanc in a statement after a virtual meeting with his counterparts.
Reducing barriers to interprovincial trade was a central promise made by Prime Minister Mark Carney during last year’s election campaign. The Liberal Party said at the time that action on this front could expand the economy by $200-billion. While his government moved quickly to reduce barriers that are purely under federal control, further action is the responsibility of provincial governments.
Over the past year, some provinces have announced internal trade deals with other provinces, but Ottawa is pushing for a more comprehensive countrywide deal.
Blown deadline for provincial alcohol shipments bodes poorly for broader internal trade push
Monday’s federal statement essentially recommits the provinces and territories to targets that were first announced by Mr. Carney and the premiers in January.
The original pledge related to alcohol was first announced last July.
Restrictions on interprovincial alcohol sales are often cited as the most obvious example of the challenges businesses face in trying to operate across provincial barriers.
Currently, alcohol sales rules vary by province and often by the type of alcohol. A deal on direct-to-consumer alcohol sales would allow residents of any province or territory to freely buy any type of alcohol directly from businesses in other parts of the country.
Beyond alcohol, Mr. LeBlanc said that by the end of the year, the goal is to expand mutual credential recognition to the services sector, and align approval processes for new building materials and prefabricated homes.
Mr. LeBlanc noted the premiers also agreed to harmonize provincial health and safety training requirements for the construction sector by this fall, and to speed up credential verification for skilled trades workers by spring 2027 by implementing digital public registries.
Dan Kelly, president of the Canadian Federation of Independent Business, said the provinces have “largely failed” on the alcohol file, with only New Brunswick and Manitoba having moved to allow direct-to-consumer alcohol sales from every province in the country.
Waters on Wine: Eight Canadian wines to enjoy this summer
“Governments are continuing to say all the right things on internal trade, but we’re well past due time to see the action match the rhetoric,” he said in an e-mail. “This kind of missed deadline does not bode well for more complex files like expanding mutual recognition to the service sector or harmonizing construction sector health and safety requirements by the end of the year.”
Mr. Kelly said it’s time for provinces to approve tangible changes that will help small businesses expand operations across provincial borders.
“If we can’t get this right when facing a massive trade threat from the United States, it will be our grandchildren’s grandchildren that will still be discussing this,” he said.
Joy Nott, a partner in the trade and customs practice at KPMG Canada, said in a statement that Canadians expect their political leaders to understand why these issues matter.
“They want the freedom to buy alcohol from anywhere in the country to anywhere in Canada. This is less about alcohol sales, and more about Canadians wanting to support other Canadians and contribute to our economy,” she said.