Canada, EU toast free trade agreement on wine, spirits

(GlobalNews) - The Canada-Europe trade talks may be stalled on a number of controversial topics, but in one area — wines and spirits — there’s been plenty of cheer going around.

Sources close to the trade negotiations in Brussels say the two sides have had a relatively easy time settling on rules governing wines and spirits, although European vintners likely still view wine producers in Ontario and British Columbia as receiving preferential treatment.

That hasn’t prevented foreign wines from maintaining a dominant foothold on the Canadian market, however. Statistics Canada figures show imported wines made up about two-thirds of the $6.5-billion dollar market in the past year.

And European dominance isn’t likely jeopardized by anything in the deal, given that the agreement so far in the sector either keeps the status quo or gives a minor nod to European concerns.

Read more: No timeline on free-trade talks with EU, says Harper

One change, which could theoretically result in lower prices on more expensive brands of wine and liquor, involves a technical change to the way Canada applies duties on imports from Europe.

Ontario and British Columbia have also agreed to freeze licences on independently operated stores that sell products that are made in their respective provinces.