The Okanagan Wine Industry Battles Trade Wars and Climate Challenges, Eyes Nationwide Growth
The Okanagan Valley, renowned for its thriving wine industry, has been handed a rare opportunity to showcase its products on a larger scale. In a move that has been met with enthusiasm by local winemakers, British Columbia has announced the removal of U.S. liquor from store shelves in B.C. liquor stores. This decision comes amid an escalating trade war between Canada and the United States, which has created both challenges and opportunities for the region’s wine producers.
Bobby Gidda, CEO and president of Volcanic Hills Estate Winery, expressed optimism about the decision, stating, “Having some of the U.S. product off the shelves will allow some of the B.C. products to shine a little more.” This sentiment is shared by many in the industry, as the reduction of foreign competition could create space for local wines to gain more visibility and market share. However, Gidda and other industry leaders emphasize that the real game-changer lies in the removal of interprovincial trade barriers, which have long stifled the growth of Canadian wineries.
The Okanagan wine industry has faced significant setbacks in recent years, particularly due to a devastating cold snap in 2023 that destroyed the majority of crops. This climate-related disaster underscored the fragility of the industry and the need for systemic changes to ensure its long-term sustainability. While the removal of U.S. liquor from B.C. stores is a step in the right direction, winemakers argue that true progress can only be achieved by dismantling the outdated trade restrictions that prevent Canadian wines from being easily sold across the country.
The push for interprovincial trade reform has been a decades-long effort, championed by organizations like Wine Growers Canada. Dan Paszkowski, the group’s president and CEO, has repeatedly highlighted the absurdity of the current system, wherein Canadian wines can be exported to the United States but not freely sold to consumers in other Canadian provinces. “We can sell to an American. We can ship it to the USA, but we can’t ship that wine to Ontario, and it’s the year 2025,” Paszkowski remarked. “That is ridiculous.” This frustration is shared by winemakers across the country, who see the removal of these barriers as a critical step toward building a more resilient and competitive industry.
Recent developments suggest that meaningful progress may finally be on the horizon. At a first ministers meeting earlier this year, eight of Canada’s 10 provinces, including British Columbia, agreed to remove direct-to-consumer sale barriers. While Prince Edward Island initially hesitated, Paszkowski noted that the province is now expressing interest in joining the initiative. Newfoundland and Labrador remains the sole holdout, but the widespread willingness to collaborate has sparked optimism among industry leaders. “I think the willingness is there by the eight provinces that have signed on to move forward,” Paszkowski said, adding that the borders could open up as early as a few weeks from now.
The renewed focus on interprovincial trade reform is not only a response to the current trade war with the U.S. but also a recognition of the broader economic benefits it could bring. Ravi Kahlon, chair of the B.C. Tariff Response Committee, revealed that provinces are working diligently to dismantle trade barriers as quickly as possible. “I have never seen provinces come together when it comes to interprovincial trade, wanting to bring down barriers so quickly,” Kahlon said. “It actually gives me hope that not only will we be able to deal with the tariffs we are dealing with now, but we are going to come out of this much stronger than when we went into it.” For winemakers like Gidda, this is a moment of hope and opportunity. “With the threats that we have, it’s not about the individual provinces. It’s about the country as a whole,” Gidda said, emphasizing the importance of unity in the face of global economic challenges.
As the Okanagan wine industry looks to the future, there is a palpable sense of resilience and determination. While the road ahead is uncertain, the removal of U.S. liquor from B.C. shelves and the growing momentum behind interprovincial trade reform offer a glimpse of a brighter, more unified future for Canadian winemakers. By breaking down barriers and supporting local producers, Canada can not only weather the current trade war but also emerge stronger, more cohesive, and better equipped to compete on the global stage.
