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The organization that represents some of America’s largest spirits producers is calling for the NSLC to remove a policy that gives preferential markup to Nova Scotian spirit products.
In a recent 77-page report sent to the Office of the United States Trade Representative, the Distilled Spirits Council of the United States outlined trade barriers they face in different countries.
The Canada section covers six pages, where the barriers include the ban on selling American alcohol in most provinces and preferential markups on local spirits in Alberta, Saskatchewan, New Brunswick, P.E.I., Nova Scotia, and Newfoundland and Labrador.
In Nova Scotia, spirits distilled in the province or blended and bottled in the province have markup percentages that range from 50 to 80 per cent, while all imported and non-Nova Scotia spirits have a markup rate of 160 per cent.
The Distilled Spirits Council says these markups are inconsistent with trade agreements “as it provides protection to local products and discriminates against imported spirits.”
The council asks for help from the U.S. government in “urging Canada and the provinces of Alberta, Nova Scotia, New Brunswick, Prince Edward Island, Saskatchewan and Newfoundland and Labrador” to get rid of the NSLC policy.
It’s unclear why the council — which did not respond to an interview request — thinks the other provinces have something to do with the Nova Scotia Liquor Corporation.
The province’s Intergovernmental Affairs Department said it has not received a formal complaint about this matter from the Distilled Spirits Council or the U.S. government through established trade dispute mechanisms.
“Nova Scotia remains committed to meeting its trade obligations and engaging with partners through appropriate channels,” said the statement.
The NSLC said it’s historically had preferred markups on local products as part of its mandate to support Nova Scotia’s beverage alcohol industry and ensure a level playing field for local producers.
U.S. spirit producers struggle
The report comes as global U.S. spirit exports declined nine per cent through the first two quarters of 2025, compared with the same period a year ago.
“This downturn reflects the impact of retaliatory tariffs and other actions, rising trade tensions, and market access barriers in key markets,” the report says.
It also noted international consumers appear to be purchasing domestic or other imports, “potentially in response to perceptions of unfair U.S. trade practices.”
The Craft Distillers Association of Nova Scotia declined an interview request. In a statement, executive director Fay Patey said the matter is “ultimately a government-to-government trade issue.”
“What we can say is that the current provincial system in Nova Scotia has been working as intended,” she wrote. “It supports local production, local jobs, and local investment while still providing consumers with a wide range of imported products.”
Economic impact of Nova Scotian distilleries
Patey said that in 2024, Nova Scotian distilleries employed more than 100 full-time employees and a comparable number of part-time and seasonal staff. The businesses also use more than 110,000 kilograms of local agricultural products each year.
Patey said the association hopes that the long-standing, collegial trade relationship is restored between Canada and the U.S.
“Historically, that system worked well for everyone,” Patey wrote. “However, any resolution to U.S. tariff policy should not come at the expense of provincial programs designed to support local producers who are creating jobs and economic value here in Nova Scotia.”
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