Saskatchewan, Alberta to Resume Purchase, Distribution of US Liquor

Saskatchewan, Alberta to Resume Purchase, Distribution of US Liquor
Bottles of wine are shown on display at a liquor store in Cremona, Alta., on Feb. 7, 2018. The Canadian Press/Jeff McIntosh
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Saskatchewan will begin purchasing and distributing U.S. liquor again months after removing products from the shelves in response to U.S. tariffs. The move follows a similar decision made by Alberta where the government said it too would be allowing retailers to stock American products again.

The Saskatchewan Liquor and Gaming Authority (SLGA) said the move would allow it to both sell current stock and purchase new supplies for alcohol retailers in the province.

Spokesperson David Morris said it would allow for the sale of products that were taken off the shelf after U.S. President Donald Trump’s tariffs were announced, adding that it would give consumers choice between buying local or buying U.S. liquor.

Ottawa still has a 25 percent tariff on U.S. alcohol, Morris said, adding to the product cost.

In both Saskatchewan and Alberta, where alcohol stores are privately owned, the government directed the agencies in charge of regulating liquor sales to stop purchasing U.S. products after Trump announced that he would be imposing tariffs on goods imported to America from Canada. Other provinces had also said they were not going to sell U.S. alcohol in response to the tariffs.

Alberta said it would not permit its liquor and gaming agency to buy U.S. alcohol or video lottery terminals.

Saskatchewan liquor retailers were told to stop buying U.S. alcohol but retailers could continue selling their remaining inventory to avoid losses on previously bought stock, the government said in March.

The province also said its lottery and gaming agency would need to find alternative suppliers for the more than $40 million worth of upgraded U.S. video lottery terminals and slot machines that were expected to be purchased this year.

At the time, Premier Scott Moe said that the United States had been his province’s “largest and most important trading partner.”

However, he said they had to “push back” due to the tariffs, adding the goal was to get the levies lifted “as soon as possible” to resume the mutually beneficial relationship.

Alberta confirmed last week that it would allow U.S. liquor to be purchased and distributed again in the province.

Service Alberta Minister Dale Nally said on June 7 the move signals a “renewed commitment to open and fair trade” with the United States.

Nally said that the decision to resume buying U.S. alcohol and gambling machines “sets the stage for more constructive negotiations” ahead of an anticipated new Canada-U.S.-Mexico trade agreement.

The Canadian Press contributed to this article.