Live Markets, Charts & Financial News

Why provinces are using liquor leverage in trade war

1

Canadians respond to definitions and Trump's talk about making Canada state 51 by avoiding American products in general

Article content

Dozens of Kentuccy Bourbons, on the BRITISH Columbia Liquor Stores site, ranges from an ounce bottle, at $ 5.29, to a $ 2,400 Woodford Reserve bottle, whose age ranges from cosmic barrels and displayed in the Crystal Group.

Article content

Article content

What they share all is the appointment of “currently not available”, after it was extracted from the sale of the British government in Colombia in revenge on the tariff of US President Donald Trump on Canadian imports.

Advertisement 2

Article content

Summoning time for alcohol in the United States was a common step between Canadian regional and regional governments looking for ways to fight in the trade war.

It is a way to benefit from the government's control of the alcohol sector.

He said that British Columbia and other provinces use its specialty on alcohol sales to harm American companies and send a message that the American customs tariff is unjustified and harmful to both sides of the border.

He said on Wednesday: “In my opinion, it is an effective way to attract the attention of American companies and to know that the customs tariff leads to commercial wars, and we are now two days in a very important commercial war between (Ma) was a commercial partner.”

Rosko said that governments do not have power or the ability to implement such a ban for many other types of goods purchased by private companies.

“It is very difficult for the government to interfere there, and for this reason they have targeted tariffs,” he said about the prohibition of alcohol in the United States, as well as Ottawa's adoption by 25 percent of the customs tariffs on $ 30 billion.

Article content

Advertising 3

Article content

The provinces, including Ontario, Kepeek and Alberta, were directed, among other things, their alcohol organizations to stop buying all American alcohol, while BC banned alcohol from the “red states” that voted for Trump last fall.

“The procedures will lead to an annual loss of $ 40 million to the manufacturers” in the states that are governed by the most supportive officials of Trump's unfair definitions. “

These moves have the attention of Kentucky Governor Andy Bishir, a democratic in a deeply red country that spoke against Trump's tariff, saying that the trade war will lead to “great harm” for individuals and companies, including the participants in the Borbon industry.

“These definitions, which are the result of one individual, will lead to the high prices of our gas, which will lead to the high prices of our groceries, and will raise the cost of housing throughout the United States,” Picher said during his appearance on the playing of the CTV News channel this week.

Last month, Beshear wrote to members of the Congress delegation in Kentucky in Washington, expressing “serious concerns” about the effects of reprisal measures by Canada on the state's manufacture in the state.

Advertising 4

Article content

He wrote that the Powerbon industry represents more than $ 9 billion in economic production every year and supports more than 23,000 jobs in the state.

Speaking to the correspondents on Wednesday, Prime Minister BC, David Eibi, said he saw the fears of Kentucky about the “boycott” of American alcohol.

He said: “Their interest is, of course, the Canadian province, but also the possibility of a Mexican boycott in addition to the possibility of boycotting the European Union.”

In a statement of the legislative body on the same day, Aibi said that the withdrawal of Florida ROM, Tixas Vodka, Tennessi Yousaki and Kentucky Bourbon from British Columbia's shelves “show the president's allies about the integrated nature of our relationship.”

Not everyone is convinced of banning American alcohol is the best strategy, including Michael Daviro, a professor at Vancouver Economics College at the University of Columbia.

He said: “It seems to me that it would be better to confront the like, as a 25 percent tariff is placed on any commodity that I decided … you want to target it,” adding that this step will lead to an increase in the revenues of the British Columbia government.

“Just a comprehensive sales prohibition in fact does not do anything except for making sellers in the red states very upset,” said Daviro.

Advertising 5

Article content

Rosko said the explicit ban on American alcohol by provinces and other regions is likely to have a stronger retaliatory effect than the “red state” ban in BC.

He said that the Canadians themselves respond to the definitions and Trump's talk about making Canada the state 51 by avoiding American products in general.

“Even if they did not go forward, if the BC government does not have a comprehensive ban, I think American alcohol companies will harm anyway just to the Canadian movement, which seems to be really gaining.”

It is recommended from the opening

When asked whether he should worry BC about destroying relations with the neighboring “blue” democratic countries in a complete ban on American alcohol, Rusco said the damage had already occurred by Trump.

“I don't really think that Canadians are thinking about relations with them, as you know, the more the type of left states in California, Washington and Oregon.

“I think we are in general from the Trump administration in general,” he said.

Article content

Comments are closed, but trackbacks and pingbacks are open.