We may soon see NAFTA in the news for reasons other than politics… according to a representative of the California Wine Institute, U.S. trade representatives are preparing to file a formal complaint against a law passed in British Columbia in 2015, which allows grocery stores to sell wine.  The problem, they say, is the law only permits the sale of wines produced in British Columbia.

According to opponents of the law, NAFTA and the WTO Agreement require signatories to treat imported and domestic products equally, which they assert is clearly violated by the B.C. law.  NAFTA does permit monopolies and state enterprises subject to certain restrictions, including that a party must ensure that any designated monopoly, “does not use its monopoly position to engage, either directly or indirectly, including through its dealings with its parent, its subsidiary or other enterprise with common ownership, in anti-competitive practices in a non-monopolized market in its territory that adversely affect an investment of an investor of another Party, including through the discriminatory provision of the monopoly good or service, cross-subsidization or predatory conduct.”

If a complaint is filed, it may receive more attention than under previous administrations, which U.S. trade lobbies certainly hope to capitalize on.  We will update this post in the future if a formal complaint is filed.


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