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Group of U.S. Distillers Complains N.S. and Other Provinces Favouring Local Alcohol
U.S. distillers say provincial markups and bans have cut their Canadian sales by up to 85%, urging U.S. Trade Representative to intervene against discriminatory policies.
On Dec. 25, 2025, the Distilled Spirits Council of the United States sent a 77-page submission to the Office of the United States Trade Representative urging Jamieson Greer to push Canada and provinces to end the NSLC's preferential markup and sales bans.
The submission alleges provincial policies by the Nova Scotia Liquor Corporation and others provide preferential markups and bans disadvantaging U.S. spirits, violating WTO and USMCA rules after tariffs.
The distillers cite Nova Scotia's markup rates, with local spirits facing 50–80 per cent and imports 160 per cent, along with LCBO shipping restrictions and SAQ pricing limits.
Reported data show export and Canadian sales drops, with U.S. producers claiming Canadian sales fell 68 per cent in April and dropped 85 per cent in Q2 to less than US$10 million, risking exit from Canada's largest alcohol market.
Locally, Nova Scotia's numbers show the NSLC removed about $14 million of U.S. alcohol earlier this year and pledged $4 million from sales to food banks, while local sales rose 13.4 per cent to $44.1 million.
A U.S. alcohol producer group accuses Canadian retailers of giving an unfair advantage to local spirits, including by applying profit margins that it describes as "discriminatory" in Nova Scotia and other provinces.