G/STR/N/16/CAN  
 
22 July 2016  
(16-3909)  Page: 1/34  
Working Party on State Trading Enterprises  Original: English/French  
 
 STATE TRADING 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A) OF THE  
GATT 1994 AND PARAGRAPH 1 OF THE UNDERSTANDING ON  
THE INTERPRETATION OF ARTICLE XVII 
CANADA  
The following communication, dated 4 July 2016, is being circulated at the request of the 
Delegation of Canada. 
 
_______________ 
 
 
Pursuant to the provisions of Article XVII:4( a) of the GATT 1994 and paragraph 1 of the 
Understanding on the Interpretation of Article XVII, Canada submits herewith its notification 
concerning state trading enterprises. This notification covers the Canadian Dairy Commission, the 
Canadian Wheat Board, the Freshwater Fish Marketing Corporation and the Provincial and 
Territorial Liquor Control Authorities for the period covering 2013/2014 to 2014/2015. G/STR/N/16/CAN 
 
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  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. Identification of state trading enterprises Canadian Dairy Commission (CDC). B. Description of products affected (including  tariff item number(s) encompassed in product 
description) 
04.05 Butter and other fats and oils derived from milk; dairy spreads. II. REASON AND PURPOSE 
A. Reason or purpose for establishing and/or maintaining state trading enterprise 
The statutory objectives of the CDC are to provid e efficient Canadian producers of milk and cream 
with the opportunity of obtaining a fair return for their labour and investment, and to provide consumers of dairy products with a continuous and adequate supply of dairy products of high 
quality.  
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers 
Imports of butter are subject to control as items listed on the Import Control List under the 
authority of the Export and Import Permits Act . Global Affairs Canada (formerly the Department of 
Foreign Affairs and International Trade) is responsible for the administration of the Import Control 
List. Information respecting the importation of bu tter may be obtained at the website of Global 
Affairs Canada, http://www.international.gc.ca/cont rols-controles/index.aspx?view=d . 
Under the import regime in place until 1 August 1995, the CDC had exclusive or special privileges 
with respect to butter imports. Butter was on the Import Control List under the Export and Import 
Permits Act , with no existing quota provided for imports on a regular basis. Import permits were 
issued on occasion when the CDC determined that  imports were necessary to relieve a temporary 
market shortage. By historical practice, when butter imports were allowed, the CDC acted as 
importer of record. 
Since the implementation of the tariff rate quota (TRQ) for butter on 1 August 1995, import 
permits for the butter TRQ have been allocated to the CDC annually with the proviso that these 
imports be directed to the further processing sector.  
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. Summary statement providing overview of operations of the state trading enterprise  
The CDC is a government-owned corporation which advises the Minister of Agriculture and 
Agri-Food on matters relating to dairy policy. In carrying out its mandate, the CDC chairs and 
supports the work of the Canadian Milk Supply Management Committee (CMSMC). Its work includes providing the technical support necessary for the operation of Canada's milk supply 
management system, administering revenue pooling agreements on behalf of the industry, 
purchasing and storing dairy products for use in times of low milk production, establishing the target price for industrial milk, the assumed pr ocessor margin and the support prices for butter 
and skim milk powder, as well as administering other marketing programmes. 
B. Specification of exclusive or special righ ts or privileges enjoyed by the state trading 
enterprise 
Since the implementation of the tariff rate quota (TRQ) for butter on 1 August 1995, import 
permits for the butter TRQ have been allocated by the Trade Controls Bureau (TCB) of Global 
Affairs Canada (formerly the Export and Import Controls Bureau) to the CDC annually with the proviso that these imports be directed to the further processing sector.  G/STR/N/16/CAN 
 
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  C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation 
The CDC is not the sole importer of butter. Certain niche markets with specific requirements are 
supplied through specific import permits issued by the TCB. The allocation of import permits for 
other dairy products subject to TRQs is administered by TCB under the authority of the Export and 
Import Controls Act  (information respecting the importatio n of dairy products may be obtained 
from the website of Global Affairs Canada, http://www.international.gc.ca/controls-
controles/index.aspx?view=d ). 
D. How import/export levels are established by the state trading enterprise 
Pursuant to Canada's Uruguay Round market access commitments, a butter TRQ was established 
and implemented on 1 August 1995. To date, the CDC has acted as the first receiver of these 
imports, under permits issued by the TCB.  
E. How export prices are determined The CDC, in any export sale, receives prices resulting from normal commercial negotiations based 
on market conditions.  
F. How the resale prices of imported products are determined The CDC, in its sales of imported butter, generally prices this butter at prices comparable to those 
for butter in further processing uses. 
G. Whether long-term contracts are negotiated by the state trading enterprise. Whether the 
state trading enterprise is used to fulfil contractual obligations entered into by the government 
Not applicable.  
H. Brief description of market structure The major participants in the Canadian dairy industry are dairy producers and dairy processors. 
In 2014, dairy producers operated approximately 11,962 farms in Canada. Virtually all of these 
farms produce milk for two markets: the fluid market (table milk and cream) and the industrial market (manufactured dairy products such as butter, cheese, yogurt and ice cream). Dairy 
processors include dairies that process raw milk for fluid consumption or industrial use, and further 
processors who use dairy ingredients and products as inputs for other finished goods.  
The marketing of fluid milk is regulated at the prov incial level by producers through provincial milk 
marketing boards. Industrial milk production and management is governed by a federal/provincial 
agreement called the National Milk Marketing Plan  overseen by the CMSMC. This committee, 
chaired by the CDC, is comprised of producer an d government representatives from all provinces. 
Representatives of national producer, processor, and consumer organizations participate as 
non-voting members. Each year, th e CMSMC sets a national industrial  milk production target called 
the market sharing quota (MSQ), taking into consideration: stocks of dairy products, the estimated surplus butterfat from fluid milk processi ng, anticipated imports, planned exports,  and domestic 
demand for industrial milk in the coming year. This target is monitored regularly and adjusted 
when necessary. The MSQ is distributed among the provinces according to the terms of the 
National Milk Marketing Plan , and allocated by each province to its producers according to its own 
policies. The share of the MSQ that each dairy prod ucer receives sets the limit on the amount of 
industrial milk production that is eligible for sale.  
Imports of dairy products are subject to control as items listed on the Import Control List  under 
the authority of the Export and Import Permits Act . In keeping with Article 4 of the WTO 
Agreement on Agriculture , Canada established market access commitments in the form of TRQs 
for fluid milk, specialty creams, condensed milk/cream, yogurt, powdered buttermilk, dry whey, other products of milk constituents, butter, cheese,  other dairy preparations and ice cream. Global 
Affairs Canada is responsible for administering these TRQs. G/STR/N/16/CAN 
 
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  IV. STATISTICAL INFORMATION 
See attached Tables I - III. V.  REASON WHY NO FORE IGN TRADE HAS TAKEN PLACE (AS APPROPRIATE)  
Not applicable. 
VI. ADDITIONAL INFORMATION (AS APPROPRIATE)  
Not applicable.  
  G/STR/N/16/CAN  
 
- 5 - TABLE I 
STATE TRADING: CANADIAN DAIRY COMMISSION 
STATISTICAL INFORMATION, IMPORTS 
Description of product Year Total quantity 
imported1 Quantity imported 
by state trading 
enterprise Average import 
price Average representative 
domestic sales price2 Mark-up National 
production 
1  2 3 4 5 6 7 
Butter and Other Fats and Oils Derived from Milk 04.05 August-July >000 kg >000 kg CAD/kg CAD/kg … >000 kg 
2013-2014 7,497 3,250 4.49 4.64 … 91,065 
2014-2015 10,485 3,251 4.56 5.42 … 91,395 
Notes:  "…"  indicates not applicable. 
1. Total quantity imported includes supple mentary imports, including pr oducts imported for further processing and re-export und er the Import for Re-Export 
Program. 
2. Comprises the average representative do mestic sales price for imported butter. 
Sources: Column 2: Statistics Canada. 
Columns 3, 4, 5: Canadian Dairy Commission. Column 7: Statistics Canada, Table 003-0009 - Production of selected butter products, monthly (production of creamery butter an d whey butter is included).  
  G/STR/N/16/CAN  
 
- 6 - TABLE II 
STATE TRADING: CANADIAN DAIRY COMMISSION 
STATISTICAL INFORMATION, EXPORTS 
Description of product Year Total quantity 
exported Quantity 
exported by 
state trading 
enterprise Average 
procurement 
price Average 
representative 
domestic sales 
price1 Average export 
price National 
production 
1  2 3 4 5 6 7 
Butter and Other Fats and Oils Derived from Milk 04.05 August-July >000 kg >000 kg CAD/ kg CAD/kg CAD/kg >000 kg 
2013-2014 1,312 275 3.05 9.82 3.64 91,065 
2014-2015 672 0 … 10.06 … 91,395 
Notes:  "…" indicates not applicable. 
  1.  Comprises the average represen tative domestic retail sales price. 
Sources: Column 2: Statistics Canada. 
Columns 3, 4, 6: Canadian Dairy Commission. Column 5: Statistics Canada, Table 326-0012 - Average retail prices for food and other selected items, monthly (Canadian dollar s). 
Column 7: Statistics Canada, Table 003-0009 - Production of selected butter products, monthly (production of creamery butter an d whey butter is included).  
  G/STR/N/16/CAN  
 
- 7 - TABLE III 
STATE TRADING: CANADIAN DAIRY COMMISSION 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
Description of product Year Domestic purchases 
by state trading 
enterprise1 National production Domestic sales by 
state trading 
enterprise National Consumption2 
1  2 3 4 5 
Butter and Other Fats and Oils 
Derived from Milk 04.05 August-July >000 kg >000 kg >000 kg >000 kg 
2013-2014 16,355 91,605 23,854 96,292 
2014-2015 10,529 91,395 13,772 103,221 
Notes: 1. Domestic purchases by state trading enterpri se are comprised of CDC Plan  A and Plan B purchases. 
2. National consumption is represented by domestic disappearance calculated as the sum of net stocks, production and imports, l ess exports. Domestic 
disappearance represents the amount of a co mmodity that is available for all uses in Canada. It does not represent total suppli es of a commodity actually 
consumed by individuals.  
Sources: Columns 2, 4: Ca nadian Dairy Commission.  
Column 3: Statistics Canada, Table 003-0009 - Production of selected butter products, monthly (production of creamery butter an d whey butter is included). 
Column 5: Statistics Canada, Table 003-0007 - Supply and dispositio n of milk products in Canada, monthly (whey butter net stock s and production are not included), 
imports and exports data source is Statistics Canada. G/STR/N/16/CAN 
 
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  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. Identification of state trading enterprises Canadian Wheat Board (CWB).
1 
B. Description of products affected (including  tariff item number(s) encompassed in product 
description) 
10.01 Wheat 
10.03 Barley 
12.05 Canola 
07.13 Peas 
II. REASON AND PURPOSE A. Reason or purpose for establishing and/or maintaining state trading enterprise 
Prior to 1 August 2012, the statutory objective of the CWB was the marketing in an orderly 
manner, in inter-provincial and export trade, of grain grown in Canada. 
As of 1 August 2012, the objective was to market grain for the benefit of producers who choose to 
deal with the Corporation. 
Pursuant to the Marketing Freedom for Grain Farmers Act , on 30 July 2015, the CWB was 
commercialized as G3 Canada Limited under the Canada Business Corporations Act (CBCA). 
This led to the automatic repeal of  the Canadian Wheat Board (Interim Operations) Act . 
G3 Canada Limited is a private company which  competes with other buyers of grain for Canadian 
farmers' business. 
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers 
Effective 1 August 2012, the Canadian Wheat Board Act  governing CWB operations was repealed 
and the Corporation became governed by the Canadian Wheat Board (Interim Operations) Act  
(the Act), and the Marketing Freedom for Grain Farmers Act,  statutes of Parliament of Canada. 
Farmers could sell their Western wheat and barley to the buyer of their choice. The CWB was no longer restricted to marketing wheat and barley and began to expand marketing efforts, beginning 
in the 2012-13 crop year with canola and later adding peas in 2013-14 crop year.  
Effective 30 July 2015, the Canadian Wheat Board (Interim Operations) Act , which provided for the 
constitution and powers of the CWB, was repealed, and as such, any exclusive or special rights or 
privileges to the CWB.  
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. Summary statement providing overview of operations of the state trading enterprise 
Until 31 July 2012, the CWB marketed, on behalf of producers, wheat and barley grown in the 
designated area of western Canada for domestic human consumption and for export. The CWB 
also coordinated the delivery of wheat and barl ey into grain elevators and railway cars for 
inter-provincial movement and shipment to export position.  
                                               
1 As of 30 July 2015, the CWB was commercialized and the CWB (Interim Operations) Act  was repealed, 
thereby removing Canada’s design ation of the CWB as an STE. 
 G/STR/N/16/CAN 
 
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  The CWB pooled the returns from sales of wheat an d barley over the crop year. The pooled price 
for individual grades of wheat and barley was a weighted average price that reflected the prices received from buyers over the course of the crop year less selling costs. In 2000, the CWB introduced several payment option programs, including fixed price contracts and basis payment 
contract programs, which provided farmers with an alternative to price pooling. 
The CWB could also sell feed barley and feed wh eat into the domestic feed grain market. The CWB 
sourced this grain just as it would any other CWB grain, i.e., by producer delivery contracts. 
However, its domestic sales of feed grains, which were small, competed directly with private grain 
companies, which sourced their own grain and sold to domestic feed grain users. 
Beginning on 1 August 2012, the Canadian Wheat Board (Interim Operations) Act  allowed the CWB 
to operate competitively on a transitional basis for up to five years. During the 2012-13 period the 
Corporation continued to market grain in a manner that was similar to how it marketed grain in 
the past by using both pooling and cash options, but without a marketing monopoly (which was removed 1 August 2012). During the 2013-14 and 2014-15 years, the manner of grain marketed 
by the CWB remained the same as 2012-13. 
As noted above, on 30 July 2015, the CWB was commercialized, and the Canadian Wheat Board 
(Interim Operations) Act  was repealed.  
B. Specification of exclusive or special righ ts or privileges enjoyed by the state trading 
enterprise 
Up until 31 July 2012, the CWB was solely responsible for the sale of wheat and barley grown in 
the designated area to export markets as well as for human consumption in the domestic market. 
In addition, the CWB had legal authority to contro l the inter-provincial and export movement of 
wheat and barley and their products produced anywhere in Canada.  
Effective 1 August 2012, the Marketing Freedom for Grain Farmers Act  removed the CWB's 
marketing monopoly for Western wheat and barl ey. The operations of the CWB changed to 
marketing grain in a voluntary marketing commercial environment, for the benefit of producers who chose to deal with the CWB. The CWB also had Government guarantees on certain initial 
payments, borrowings, and credit sales.  
As noted above, on 30 July 2015, the CWB was commercialized, and the Canadian Wheat Board 
(Interim Operations) Act  was repealed. 
C. Type of entities other than the state trading enterprise that are allowed to engage in 
exportation and conditions for participation 
Effective 1 August 2012, any company can export Canadian wheat and barley and no export 
permits are needed.  
F
ARMERS – PRODUCER DIRECT SALE 
Before 1 August 2012, farmers themselves could al so export wheat and barley by using the CWB's 
producer direct sale program. After 1 August 2012, farmers could export their grain directly 
without consulting or working with the CWB. 
EXPORTS OF EASTERN CANADIAN WHEAT  
Prior to 1 August 2012, exports of eastern Canadian wheat required export licenses obtained from 
the CWB. In practice, these were freely granted. This is no longer a requirement.  
D. How export levels are established by the state trading enterprise 
The CWB made sales of wheat and barley for export in accordance with commercial considerations 
such as price, quality, availability, marketability, and transportation costs. The volume of grain 
exported was primarily a function of the qualit y and volume produced and offered for sale by 
farmers through the CWB and of demand. If mark et conditions warranted, the CWB could defer G/STR/N/16/CAN 
 
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  sales until the next crop year. This system of establishing export levels became open to any 
company after 1 August 2012.  
As noted above, on 30 July 2015, the CWB was commercialized, and the Canadian Wheat Board 
(Interim Operations) Act  was repealed.  
E. How export prices are determined 
The CWB determined export prices in line with prevailing market conditions, in order to maximize 
revenues from sales. Commercial considerations taken into account in this respect included 
relevant US futures exchange prices and those of competing suppliers from other origins. 
For example, depending on the type and quality of the grain involved, the CWB in many cases 
derived its prices from those established on th e Minneapolis Grain Exchange, Chicago Board of 
Trade, and Kansas City Board of Trade. Where the relevant competit ion was wheat, from an origin 
other than the U.S., the price of that wheat had to be considered. In these and other cases, for 
example, for malting barley and durum wheat, effe ctive futures contracts do not exist. Therefore, 
CWB prices for these products were based on market intelligence from various sources regarding 
values at which the competition was offering and trading. This process was essentially the same as 
the process followed by other international traders. Post 1 August 2012, any company can export Canadian wheat and barley. Export prices are determined by market factors. 
F. How the resale prices of imported products are determined 
Imports of wheat and wheat products, and barley  and barley products, are conducted by the 
private trade at prevailing market prices. The CW B had no authority over the importation of wheat 
or barley, nor did it import either product or any other grain in the 2013-14 and 2014-15 years.  
G. Whether long-term contracts are negotiated by the state trading enterprise. Whether the 
state trading enterprise is used to fulfil contractual obligations entered into by the government 
The CWB did not enter into long-term contracts for the sale of wheat and barley during the period 
notified.  
The CWB was not used to fulfil contractual obligations entered into by government. 
H. Brief description of market structure 
Approximately 68,000 farmers in Alberta, Saskatch ewan, Manitoba and the Peace River area of 
British Columbia produced most of Canada's wheat and barley, which is grown for both the domestic and export markets.  
Domestically, Canadian cereal grains are used mainly in processing, such as flour milling and 
malting, and livestock feed. The CWB's domestic pricing practices, as with its export pricing, were market-based. Domestic prices are a function of the relevant US market prices. 
Grain handling facilities in Western Canada are primarily owned and operated by private entities. 
The primary elevator system in Western Canada has undergone massive consolidation during the past several years. As of 1 April 2016, there were 338 primary elevators that were licensed by the 
Canadian Grain Commission in Western Canada. This compares to 1,058 in existence at 
1 August 1998, and 1,578 at 1 August 1990. 
For Western Canadian wheat and barley destined for domestic livestock feed markets, grain 
companies buy and sell these commodities directly in the marketplace. For Western Canadian 
wheat and barley marketed for domestic human consumption or export prior to 1 August 2012, 
grain companies acted as handling agents for the CWB. The CWB directed the movement of wheat and barley through delivery contracts, and allocated shipping orders for rail cars to companies 
handling CWB grains. The CWB could either deal directly with the buyer or through an accredited 
exporter. The CWB dealt with approximately 20 accredited exporters who purchased grains from the CWB for resale to customers. G/STR/N/16/CAN 
 
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  Starting 1 August 2012, the CWB was operating in competition with other grain handling 
companies for producers' grain and for customers to sell the grain to. In addition, the CWB was competing for the capacity to manage the logistics of receiving grain from farmers to delivering grain to customers.  
To function in this environment, CWB establis hed agreements with grain handling companies in 
Western Canada to receive and ship grain. The CWB originated grain from farmers and offered 
farmers pooling and cash options, and also traded directly with third parties. The CWB also began 
acquiring grain handling assets in 2013.  
The CWB did not control imports of wheat and barley and their products. Tariff rate quotas for 
wheat, barley and their products are administered  by the Department of Global Affairs Canada, 
under the authority of the Export and Import Permits Ac t. Further information is available at the 
Global Affairs Canada's Export and Import  Controls Bureau web site, located at: 
http://www.international.gc.ca/contro ls-controles/index.aspx?lang=eng  
IV. STATISTICAL INFORMATION 
See attached Tables I – III.  
V. REASON WHY NO FOREIG N TRADE HAS TAKEN PLACE (AS APPROPRIATE)  
Not applicable. 
VI. ADDITIONAL INFORMATION (AS APPROPRIATE) 
Governance 
Under the CWB (Interim Operations) Act , the CWB was governed by a board of directors consisting 
of four directors appointed by the Government of Canada and the President and Chief Executive 
Officer appointed by the Government in consultation with the board of directors. The board of 
directors was responsible for directing and overseeing the business and affairs of the CWB. 
As noted above, the CWB was commercialized on 30 July 2015, and the CWB (Interim Operations) 
Act was repealed. 
Pooling and Producer Payments 
At any given time during the crop year, producer s participating in the pool received the same 
initial payment for the same grade of grain delivered to the CWB, on an in-store Vancouver or 
St. Lawrence basis, less deductions for transportation and handling to the producer's particular delivery point. In the first phase of the pooling system, producers received an initial payment when they delivered grain to a primary elevator. The level of this initial payment was set and 
guaranteed by the Government of Canada based on its review of CWB recommendations and 
varied from year to year according to market conditions. The initial payment represented a portion, paid at time of delivery, of the total return the pool was projected to achieve over the 
marketing period. The initial payments were actually a schedule of payments specific to each class 
and grade of grain. Beginning 1 August 2012, to provide a higher upfront payment, CWB combined ongoing government guarantees with its own risk -management strategies and followed it through 
the 2013-14 crop year. For the 2014-15 crop year, given its preparation for commercialization, 
the CWB waived the Government guarantee for initial payments. 
At the end of a crop year, the net value of grai n in each pool account was determined after all 
grain has been sold and all costs involved in marketing had been deducted. These costs included 
interest, insurance, storage, terminal elevators' handling charges and the CWB's own operating 
costs. All funds remaining in the pool after deduct ion of these costs were returned to producers in 
the form of a final payment. This payment was ma de in accordance with the number of tonnes and 
grade of grain each producer delivered during the crop year. Effective 1 August 2012, the CWB 
could retain earnings, in anticipation of becoming a private company in the near future. G/STR/N/16/CAN 
 
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  The system of retained earnings continued for the 2013-14 and 2014-15 years until its 
commercialization on 30 July 2015. 
CWB Commercialization  
The Marketing Freedom for Grain Farmers Act  ended the CWB's marketing monopoly for Western 
Canadian wheat and barley as of 1 August 2012. This legislation also allowed the CWB to operate 
as a voluntary marketing entity for up to five years, and provided it with an opportunity to develop a plan to commercialize as a non-government, private organization. 
As noted above, on 30 July 2015, pursuant to the Marketing Freedom for Grain Farmers Act , 
the CWB was commercialized as G3 Canada Limited under the Canada Business Corporations Act , 
and the CWB (Interim Operations) Act  was repealed.  
  G/STR/N/16/CAN  
 
- 13 - TABLE I 
STATE TRADING: CANADIAN WHEAT BOARD (CWB) 
STATISTICAL INFORMATION, IMPORTS1 
Description of product Year Total quantity 
imported Quantity imported 
by state trading 
enterprise Average import 
price Average representative 
domestic sales price Mark-up National 
production 
1  2 3 4 5 6 7 
 August-July tonnes tonnes CAD/tonne CAD/tonne  tonnes 
Wheat (including durum) 10.01 2013-2014 55,000 - --- --- --- 37,530,000 
2014-2015 87,000 - --- --- --- 29,420,000 
Barley 
10.03 2013-2014 9,000 - --- --- --- 10,237,000 
2014-2015 136,000 - --- --- --- 7,119,000 
Canola 
12.05 2013-2014 66,000 - --- --- --- 17,966,000 
2014-2015 77,000 - --- --- --- 16,410,000 
Peas 
07.13 2013-2014 25,000 - --- --- --- 3,961,000 
2014-2015 31,000 - --- --- --- 3,810,000 
Notes:  "-" indicates zero.  
"---"  indicates not applicable. 1. The Canadian Wheat Board has no authority over the importation of wheat or barley and no jurisdiction to import either produ ct.  
Sources: Columns 2, 7: Canada: Outlook for Principal Field Crops (2015-03-20 and 2016-03-16), Agriculture and Agri-Food Canada.  
  
  G/STR/N/16/CAN  
 
- 14 - TABLE II 
STATE TRADING: CANADIAN WHEAT BOARD (CWB) 
STATISTICAL INFORMATION, EXPORTS 
Description of product Year Total quantity 
exported1 Quantity exported 
by state trading 
enterprise Average procurement 
price Average representative 
domestic sales price Average export 
price National 
production 
1  2 3 4 5 6 7 
 August-July tonnes tonnes CAD/tonne CAD/tonne CAD/tonne tonnes 
Wheat (including durum) 10.01 2013-2014 23,474,000 not available not available not available not available 37,530,000 
2014-2015 23,941,000 not available not available not available not available 29,420,000 
Barley 
10.03 2013-2014 2,390,000 not available not available not available not available 10,237,000 
2014-2015 2,462,000 not available not available not available not available 7,119,000 
Canola 
12.05 2013-2014 9,164,000 not available not available not available not available 17,966,000 
2014-2015 9,161,000 not available not available not available not available 16,410,000 
Peas 
07.13 2013-2014 2,779,000 not available not available not available not available 3,961,000 
2014-2015 3,091,000 not available not available not available not available 3,810,000 
Notes:  1.  Exports include grain prod ucts, while excluding oilseed products. 
Sources: Column 2, 7: Canada: Outlook for Principal Field Crops (2015-03-20 and 2016-03-16). 
Columns 3, 4, 5, 6: Canadian Wheat Board. As CWB is competing for grain with other entities, th is information is not available as it is commercially sensitive. 
  
  G/STR/N/16/CAN  
 
- 15 - TABLE III 
STATE TRADING: CANADIAN WHEAT BOARD (CWB) 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
Description of product Year Domestic Purchases 
by state trading 
enterprise National Production Domestic sales by 
state trading 
Enterprise1 National Consumption2 
1  2 3 4 5 
 August-July tonnes tonnes tonnes tonnes 
Wheat (including durum) 
10.01 2013-2014 not available 37,530,000 … 9,511,000 
2014-2015 not available 29,420,000 … 8,897,000 
Barley 
10.03 2013-2014 not available 10,237,000 … 6,915,000 
2014-2015 not available 7,119,000 … 5,526,000 
Canola  
12.05 2013-2014 not available 17,966,000 … 7,093,000 
2014-2015 not available 16,410,000 … 8,012,000 
Peas 
07.13 2013-2014 not available 3,961,000 … 1,072,000 
2014-2015 not available 3,810,000 … 395,000 
Notes:  "…"  indicates not applicable. 
1. Prior to 1998-99, grain sales to domestic processors for further processing and export were accounted for as export sales. B eginning in 1998-99, these sales 
are classified as domestic sales. 
2. National consumption accounts for grain (including imports) used for human consumption, animal feed, seed requirement, indus trial use, waste and dockage, 
and losses in handling. 
Sources: Column 2: Canadian Wh eat Board Annual Report, Statements of Pool Oper ations, Wheat = wheat + du rum pool receipts. Barl ey= barley + designated barley pool 
receipts. 
Column 4: Canadian Wheat Board. Columns 3, 5: Canada: Outlook for Principal Field Crops (2015-03-20 and 2016-03-16). G/STR/N/16/CAN 
 
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  I. ENUMERATION OF STATE TRADING ENTERPRISES 
Freshwater Fish Marketing Corporation. 
 II. REASONS AND PURPOSE FOR INTRODUC ING AND MAINTAINING THE ENTERPRISE 
The Canadian Freshwater Fish Marketing Corporation (FFMC) was established in 1969 for the 
purpose of trading in and marketing freshwater  fish and fish products and by-products. 
As provided under the Freshwater Fish Marketing Act , and pursuant to bilateral agreements 
between the Government of Canada and the gove rnments of Alberta, Saskatchewan, Manitoba, 
Ontario, and the Northwest Territories, the FFMC has the exclusive right in the inter-provincial and 
export trade to market and trade in fish and fish products from the freshwater commercial fisheries of those provinces and territories. On tario (effective 30 March 2010) and Saskatchewan 
(effective 1 April 2012) have left the FFMC arrangement and deregulated their commercial 
freshwater fish markets. This notification will  use the term "agreement areas" to denote areas 
within Canada covered by these agreements.  
 
On 14 June 1995, the government announced the introduction of measures allowing fishermen in the agreement areas to sell their catch of certain under-utilized species through alternative 
channels if they so desire. The FFMC remains responsible for the inter-provincial and export 
marketing of the main commercial species from the agreement areas.   The objectives of the FFMC are: to market freshwater fish and fish products sourced in agreement 
areas in an orderly manner; to increase returns to fishermen; and to promote international 
markets for, and increase inter-provincial and export trade in, freshwater fish and fish products. The FFMC is required by statute to operate on a self-sustaining basis. It has been profitable 
since 1973 (with the exception of 2004 and 2009) with annual revenue which has ranged between 
Can$40 million and Can$68 million since 1990.   
III. DESCRIPTION OF THE FUNCTIONING OF THE ENTERPRISE 
Whether the enterprise deals with exports or with imports or both. 
 The FFMC is concerned with the orderly marketing of freshwater fish sourced in the agreement 
areas in the inter-provincial trade and in export markets. The FFMC does not deal with, govern or 
handle imports.   
Whether private traders are allowed to import or export and, if so, on what conditions. Whether 
there is free competition between private traders and the enterprise.  
The FFMC has the exclusive right to market fish fr om the agreement areas in inter-provincial and 
export trade. The Corporation competes with the private trade in marketing such fish in domestic and export markets. With respect to fish sour ced from areas of Canada outside the agreement 
areas, the FFMC does not control or govern privat e traders' activities – including their exports and 
domestic sales. In all parts of the domestic mark et, private traders are free to market freshwater 
fish sourced from Canadian "non-agr eement areas" or from imports.  
 
The criteria used for determining the quantities to be exported and imported. 
 The FFMC sells fish for export as determined by commercial considerations such as price, quality, 
availability, marketability and transportation. 
 How export prices are determined. How the markup on imported products is determined. How export prices and resale prices of imports compare with domestic prices. 
 
The FFMC determines exports prices in line with prevailing market circumstances in light of its 
legislated requirements to maximize returns to fishermen and operate on a self-sustaining basis. 
 
Whether long-term contracts are negotiated by the enterprise. Whether the enterprise is used to fulfil contractual obligations entered into by the Government.  
 
Not applicable. G/STR/N/16/CAN 
 
- 17 - 
 
  IV. STATISTICAL INFORMATION 
See attached Tables I – III.  
 V. REASON WHY NO FOREIGN TRADE HAS TA KEN PLACE (IF THIS IS THE CASE) IN 
PRODUCTS AFFECTED 
The Freshwater Fish Marketing Corporation is not involved in the importation of freshwater fish.   
 
VI. ADDITIONAL INFORMATION 
Not applicable.  
  G/STR/N/16/CAN  
 
- 18 - TABLE I 
STATE TRADING: FRESHWATER FISH MARKETING CORPORATION 
STATISTICAL INFORMATION, IMPORTS 
Description of product Year Total quantity 
imported Quantity imported 
by state trading 
enterprise Average import 
price Average representative 
domestic sales price Mark-up National 
production 
1  2 3 4 5 6 7 
Freshwater Fish Within HS Codes 0302, 0303, 0304 and 0305  FFMC is not involved in imports 
  
  G/STR/N/16/CAN  
 
- 19 - TABLE II 
STATE TRADING: FRESHWATER FISH MARKETING CORPORATION 
STATISTICAL INFORMATION, EXPORTS 
Description of product Year Total quantity 
exported1 Quantity exported by 
state trading 
enterprise Average 
procurement 
price2 Average 
representative 
domestic sales 
price Average export 
price National 
production3 
1  2 3 4 5 6 7 
Freshwater Fish  Within HS Codes 0302, 0303, 0304 and 0305 May-April (000's lbs) (000's lbs) C$ per pound C$ per pound C$ per pound - 
2013-2014 39,017 15,208 1.18 3.44 4.25 - 
2014-2015 34,194 14,120 1.18 3.69 4.27 - 
Notes: 1. Total Quantity Exported is the total exports for the HS codes that include the products marketed by the FFMC. Saltwat er fish and other freshwater items not 
marketed by the FFMC are captured in the quantity. The proportion attributable to FFMC is not known. 
2. Average Procurement Price does not include final paym ent (net income each year) distributed to fishers. 
3. Statistics on national production of fre shwater fish products are not collected. 
Sources: Column 2: World Trade Atlas. 
Columns 3, 5, 6: FFMC Sales Report. Column 4: FFMC Fish  Purchase Analysis.  
  G/STR/N/16/CAN  
 
- 20 - TABLE III 
STATE TRADING: FRESHWATER FISH MARKETING CORPORATION 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
Description of product Year Domestic purchases by state 
trading enterprise National Production1 Domestic sales by state 
trading enterprise National Consumption2 
1  2 3 4 5 
Freshwater Fish 
Within HS Codes 0302, 0303, 0304 and 0305 May-April (000's lbs)  (000's lbs)  
2013-2014 24,388 - 3,197 - 
2014-2015 26,510 - 3,205 - 
Notes:  1. Statistics on national production of freshwater fish products are not collected. 
2. Statistics on national consumption of freshwater fish products are not collected. 
Sources: Column 2: Deliveries report  to Transcona processing plant.  
Column 4: FFMC Sales Analysis Report. G/STR/N/16/CAN 
 
- 21 - 
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. Identification of state trading enterprises Provincial and Territorial Liquor Control Authorities.  
 
B. Description of products affected (including  tariff item number(s) encompassed in product 
description) 
2203.00 Beer from malt.  
2204.00 Wine of fresh grapes, including fortified wines; grape must other than that of 
heading 20.09.  
2205.00 Vermouth and other wine of fresh grapes flavoured with plants or aromatic 
substances.  
2206.00 Other fermented beverages (for example, cider, perry, mead); mixtures of fermented 
beverages and mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included.  
2208.00 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol; 
spirits, liqueurs and other spirituous beverages.  
II. REASONS AND PURPOSE 
A. Reason or purpose for establishing and/or maintaining state trading enterprise 
In Canada, the importation of and inter-provincial/territorial trade in alcoholic beverages is 
governed by the federal Importation of Intoxicating Liquors Act  (IILA). The objective of the IILA 
relates to the control of the consumption of alcoholic beverages in Canada for the purpose of 
protecting public health and morals.  
 B. Summary of legal basis for gaining the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers 
The IILA provides the provinces and territories, within their respective jurisdiction, with control 
over the sale of intoxicating liquor, and over the importation, sending, taking or transportation of 
such liquor into the provinces and territories. Th e provinces and territories have delegated this 
activity to the provincial/territorial liquor contro l authorities. The statute expressly provides that 
nothing in the IILA forbids the importation, sending, taking or transportation of intoxicating liquor 
for sacramental or medicinal purposes, or for manufacturing or commercial purposes not related to 
the use of liquor as a beverage.  
 As well, under the IILA, an exception exists for persons licensed by the Government of Canada 
under the Excise Act  to carry on the business or trade of a distiller or brewer where the 
intoxicating liquor is imported solely for the purpose of being used for blending with or flavouring the products of the business or trade of that person.  
 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISES 
A. Summary statement providing overview of operations of the state trading enterprise 
The provincial and territorial liquor control authorities deal with the importation and sale of 
alcoholic beverages within their respective jurisd ictions. Exportation of alcoholic beverages is a 
private matter of beverage manufacturers.   G/STR/N/16/CAN 
 
- 22 - 
 
  B. Specification of exclusive or special righ ts or privileges enjoyed by the state trading 
enterprise 
The IILA provides the provincial/territorial liquor control authorities with the delegated authority to 
import alcoholic beverages in Canada.  
 
C. Types of entities other than state trading enterprises that are allowed to engage in 
importation/exportation and conditions for participation 
Private traders are allowed to import if they are licensed by the Government of Canada under the 
Excise Act  to carry on the business or trade of a distiller or brewer where  the intoxicating liquor is 
imported for the purpose of being used for blending  with or flavouring the products of the business 
or trade of that person. Alcoholic beverages may be sold through stores operated by the 
provincial/territorial liquor control authority or through authorized private retailers or a 
combination of both.   
The private trade determines its own criteria pertaining to exports.  
 D. How import/export levels are established by the state trading enterprise 
Provincial and territorial liquor control authorities purchase or permit the purchase of alcoholic 
beverages in line with market needs as related to such commercial considerations as price, quality, availability, marketability, transportation and other conditions of purchase or sale.  
E. How export prices are determined 
Export prices are determined by the private trader.  
 
F. How the resale prices of imported products are determined 
The retail sales price of the imported product is a function of its landed cost (invoice price, federal 
customs and excise duties and taxes, and freight) , to which are added the applicable provincial 
mark-up and federal and provincial sales taxes.  The mark-up varies by product type and by 
jurisdiction. As a result of two GATT  Panels
2, liquor control authorities have modified mark-up 
practices on alcoholic beverages to bring them into conformity with the GATT.3 
 
G. Whether long-term contracts are negotiated by the state trading enterprise. Whether the 
state trading enterprise is used to fulfil contractual obligations entered into by the Government 
Not applicable. 
 H. Brief description of market structure 
The alcoholic beverages sub-sector is made up of the brewery, wine and distilling industries. There 
are also a number of small firms producing cider and fruit wines across the country but this production is comparatively minor. Fruit wines are products produced from fruits other than grapes. In 2015, the value of all alcoholic beverages produced in Canada stood at $7.5 billion 
                                               
2 Canada - Import, Distribution and Sale of Alcoholi c Drinks by Provincial Marketing Authorities (1988). 
This panel resulted in the 1989 "Agreement between  the European Economic Community and Canada 
concerning trade and commerce in alcoholic beverages"  which requires the complete phase out of mark-up 
differentials between wi ne of the Community and Canadian wine by  1 January 1998. Mark-up differentials on 
distilled spirits were to be eliminated as of 1 January 1993.  
Canada - Import, Distribution and Sale of Cert ain Alcoholic Drinks by Provincial Marketing 
Agencies (1992). The US-Canada Memorandum of Unde rstanding on Provincial Beer Marketing Practices 
(August 1993) resulted in the elimination of discriminatory differential mark-ups on beer.  
3 The Canada-US Free Trade Agreement immediately eliminated discriminatory markups on distilled 
spirits and required a complete phase out of differential markups on wine by 1 January 1995.  G/STR/N/16/CAN 
 
- 23 - 
 
  compared to $6.9 billion in 2013.4 Alcoholic beverage imports of all kinds amounted to $4.9 billion 
in 2015 while total exports stood at $934.1 million the same year.5  
 The brewing industry
6 comprises those establishments primarily engaged in the steeping, boiling 
and fermenting of malt and hops to manufacture malt beverages. The industry produces a variety 
of beer, lager, ale, porter and stout, in bottles , cans and draught for the consumer market and for 
the food service industry. The Canadian beer indu stry has been subject to increased consolidation 
as the two major national brewers are now subsidiaries of foreign brewers. Production has 
remained within Canada with approximately 350 brewing and microbrewing establishments across the country.
7 The microbrewery industry has steadily grown in Canada, catering to niche tastes 
and regional markets. Canada's geography and the fact that alcohol sales and production are 
controlled at the provincial level mean that the products of microbreweries are usually available 
only in the regions where they are produced. Canadians drink more beer than any other alcoholic beverage, however domestic per capita consumption of beer has declined steadily since the 1970s 
and reached a low of 69.1 litres in 2015.
8  
 The Canadian wine industry
9 continues to grow, evolving in response to rapid changes stemming 
from adjustments to trade liberalization under the Canada-United States FTA and GATT 1947. 
Domestic vintners now grow quality Vitis Vinifera and hybrid grapes which have resulted in a dramatic improvement in the quality of Canadian  wine. Canadian Icewine, a sweet dessert wine, 
has won several prestigious awards at international competitions and has gained considerable 
international recognition. Among the larger firms there is a significant amount of production which 
involves bottling and blending of domestic and im ported wines. However, most of these larger 
corporations have also acquired smaller estate wineries which have retained their own identity and 
which help them to define their "signature" premium products. In addition, there are many small 
family-oriented businesses which concentrate on the production of wine from Canadian grown grapes. Domestic per capita consumption of wine in Canada has increased steadily since the early 
1990s and was 14.7 litres 2015.
10  
 The distillery industry
11 produces a variety of spirits (e.g. whisky, rum, vodka, gin, liqueurs, 
brandy, spirit coolers and basic ethyl alcohol)  but its primary reputation, domestically and 
internationally, remains the production of distinctive high-quality Canadian whisky. The product is 
distilled from cereal grains (rye and corn primarily), aged in oak barrels for a minimum of three years, then bottled or sold in bulk. The industry is highly concentrated. Most companies are 
subsidiaries of multinational corporations with production facilities maintained in Canada in order 
to produce Canadian whisky, which has a registered  geographical indication in Canada. Domestic 
consumption for spirits fluctuates from year to year, but does not display a clear long term trend. 
In 2015, Canadians consumed 4.9 litres of spirits per capita.
12  
 IV. STATISTICAL INFORMATION 
The relevant statistical information is attached. See Tables I – III. 
 
                                               
4 Statistics Canada. Monthly Survey of Manufacturing by North American Industry Classification System 
(NAICS). CANSIM Table 304-0014. 
5 Statistics Cana da, CATSNet.  
6 Canada's brewing industry is defined by the NAICS (31212).  
7 Statistics Canada. Canadian business patterns, location counts, employment size and NAICS, national 
industries, by Canada and provinces, December 2013. CANSIM, Table 551-0006. 
8 Statistics Canada. Food available in Canada, an nual. CANSIM, Table 002-0011. Per capita consumption 
is measured as: available litres ale,  beer, stout and porter, adjusted fo r losses, per person 15 years old and 
over. 
9 Canada's wine industry is defined by the NAICS (31213).  
10 Statistics Canada. Food available in Canada, an nual, CANSIM Table 002-0011. Per capita consumption 
is measured as: available litres of wine, adjusted for losses, pe r person 15 years old and over. 
11 Canada's distillery industry is defined by the NAICS (31214).  
12 Statistics Canada. Food available in Canada, an nual, CANSIM Table 002-0011. Per capita consumption 
is measured as: available litres of distilled spirits,  adjusted for losses, per pe rson 15 years old and over. G/STR/N/16/CAN 
 
- 24 - 
 
  V. REASON WHY NO FOREIGN TRADE HAS TA KEN PLACE (IF THIS IS THE CASE) IN 
THE PRODUCTS AFFECTED 
Import data are given in Table I. Exporting is not within the mandate of provincial liquor control 
authorities. 
The liquor authority in Alberta, namely the Alberta Gaming and Liquor Commission, does not make 
commercial decisions on the product selections for alcoholic beverages which are imported, nor on the quantities of those imports. However, it is in cluding an explanatory text on the Alberta market 
environment for alcoholic beverages in the interest of full transparency.  
 VI. ADDITIONAL INFORMATION 
ALBERTA 
The liquor authority in Alberta, namely the Alberta Gaming and Liquor Commission, does not make 
commercial decisions on the product selections for alcoholic beverages which are imported, nor on the quantities of those imports. However, it is in cluding an explanatory text on the Alberta market 
environment for alcoholic beverages in the interest of full transparency.  
 ACTS AND REGULATIONS 
 
- Gaming and Liquor Act (c. G-1, RSA 2000). - Gaming and Liquor Regulation (Alta. Reg. 143/1996). 
SUMMARY OF LIQUOR MARKETING PRACTICES 
 
All retail sales of alcoholic beverages in Alberta are privatized. Under the Alberta system, imported and domestic products are given the same treatment.  
 
The Alberta Gaming and Liquor Commission (AGLC) regulates liquor and gaming activities in the 
Province. The AGLC administers and enforces the Gaming and Liquor Act  and the Gaming and 
Liquor Regulation  as well as related policies, and coll ects the government's flat mark-up on 
beverage alcohol.   In Alberta, private-sector liquor agencies determine what products will be brought into the 
province. Alcohol manufacturers and suppliers have the option of acting as their own liquor agent 
or employing the services of another liquor agent to expedite the process. Suppliers and agents 
are responsible for all aspects of ordering, consolidation, shipping, and marketing.  
 
The AGLC is the Importer and Wholesaler of Record. All new orders are placed on consignment with the agent/supplier named as consignee.  
 
Provincial mark-up rates under a wholesale pricing structure are a flat rate per litre. Retailers set retail prices according to market forces.   
The warehousing and distribution of beverage alco hol products is managed by a private company, 
operating out of a warehouse and distribution facility in St. Albert, Alberta. Charges reflect the cost of receiving, storing and shipping products by the pallet or by the case. Beer suppliers may apply 
to establish their own warehousing arrangements. Final approval for such arrangements is 
required from the AGLC.   G/STR/N/16/CAN 
 
- 25 - 
 
  BRITISH COLUMBIA 
 ACTS AND REGULATIONS  
- Liquor Distribution Act , R.S.B.C. 1996, c.238 as amended and the regulations thereto. 
 SUMMARY OF LIQUOR MARKETING PRACTICES 
 
The Liquor Distribution Branch (LDB) is the importer of record for all alcoholic beverages imported into British Columbia. Section 2(2) of the Liquor Distribution Act  states that the LDB "has the sole 
right to purchase, both in and out of British Columbia, liquor for resale and reuse in British 
Columbia in accordance with the provisions of the Importation of Intoxicating Liquors Act 
(Canada)".  
As of 1 May 2016 the LDB operated 198 government liquor stores. As of 1 May 2016 there was 
also a large private retail system consisting of 671 private liquor stores, 219 rural agency stores, 59 wine stores, and 445 manufacturer stores at wineries and breweries.  
 
Most retail outlets, including all government liquor stores, private liquor stores and rural agency stores may sell any liquor product, regardless of category or origin. Manufacturer stores are permitted to sell products made by that manufacturer, and if they have a lounge or special event 
area, they are also permitted to sell a limited amount of liquor produced by other manufacturers 
(whether import or domestic). Holders of a limited number of wine store licences are restricted to selling British Columbia wines.  
 
All liquor products sold in British Columbia must be registered with the LDB. The LDB's retail line of business determines which products are sold in government stores based on customer demand 
and operators of private outlets determine which pr oducts they wish to sell in their stores.  
 Suppliers or their agents determine the prices at which products are sold to the LDB. The LDB applies standard pricing formulas to the supplier price to determine the wholesale price that is paid 
by wholesale customers (including government liquor stores, private liquor stores and rural agency 
stores). Wholesale customers can then set their own retail prices, subject to the minimum retail price policy established by British Columbia's Liquor Control and Licensing Branch.  
 
MANITOBA 
 
ACTS AND REGULATIONS 
 - Manitoba Liquor and Lotteries Corporate Act.  
- The Liquor and Gaming Control Act Regulation 82/2014 Registered 14 March 2014 and the 
regulations thereto. 
 
SUMMARY OF LIQUOR MARKETING PRACTICES 
 Manitoba Liquor and Lotteries (MBLL) is the importer of record for all liquor imported into 
Manitoba. All liquor sold in the Province must meet the MBLL's listing criteria which is applied in a 
uniform and non-discriminatory manner, irrespective of country of origin.   Spirits, wine, coolers and beer are warehoused  by the MBLL and distributed to 63 government-
owned stores, 172 privately-owned agency stores, 8 specialty wine stores, 4 duty-free stores, and 
1,700 licensed premises. In addition, 5 privately- owned beer distributors warehouse and service 
the 63 government-owned stores, 241 privately-owned beer vendors, and 1,700 licensed 
premises. Privately distributed beer, which may be either import or domestic, do not have any 
sales quotas applied, as the inventories are privately held and are the responsibility of the suppliers.  
 
Beverage alcohol's retail price is determined by applying combination of a category ad valorem 
mark-up and a flat rate per litre to the landed cost. Mark-ups are applied universally to all products regardless of country of origin. G/STR/N/16/CAN 
 
- 26 - 
 
  Audited cost of service differentials (commercial consideration) are also applied in accordance with 
the GATT agreement as a flat per litre charge per category.   
NEW BRUNSWICK 
 
ACTS AND REGULATIONS  
- New Brunswick Liquor Corporation Act , R.S.N.B. 1973, c.N-6 and the regulations thereto, 
and their amendments. 
 - Liquor Control Act , R.S.N.B. 1973, c.L-10, and the regulations thereto, and their 
amendments.  
 SUMMARY OF LIQUOR MARKETING PRACTICES 
 
Importation of alcoholic beverages into New Brunswick is done through the New Brunswick Liquor Corporation (ANBL). All suppliers have full and equal access to the ANBL's listing process. Listed 
products receive distribution to the entire retail system, including agents and licensed 
establishments. Marketing programs are available to all suppliers on an equal access basis.   The ANBL maintains a retail system of 44 stores  and 84 agency outlets. This system is the 
exclusive retailer of all alcoholic beverages in the province. In addition, approximately 
1,531 establishments are licensed for on-premise consumption. These licensees buy exclusively through the ANBL retail system described above.  
 
Suppliers of beer products have the option of establishing their own in-province warehouse and 
distribution or going through ANBL's central ware house and distribution system. A service charge 
is applied to all beer products going through the ANBL warehouse and distribution system.  
 Retail price is determined by applying an ad valorem  mark-up to the product's landed cost 
(at point of sale). Rates are listed in the Mark-u p Structure document and are applied uniformly to 
all products regardless of origin. Minimum and maximum mark-ups, floor retail prices and 
minimum social reference retail prices, where applicable, are listed in the Mark-up Structure and Beer Listing Policy documents.  
 
NEWFOUNDLAND and LABRADOR 
 
ACTS AND REGULATIONS 
 - The Liquor Corporation Act , R.S.N. 1990, c.L-19, and the regulations thereto, and their 
amendments.  
- The Liquor Control Act , R.S.N. 1990, c.L-18, and the regulations thereto, and their 
amendments.  
Please note that there have been no major amendments to the above legislation over the 
2013-2014 and 2014-2015 time period.  
 SUMMARY OF LIQUOR MARKETING PRACTICES 
 
Importation of alcoholic beverages to the provin ce of Newfoundland and Labrador can only be 
done through the Newfoundland and Labrador Liqu or Corporation (NLC). In order for the NLC to 
import alcoholic beverages for sale in the province, the producer must complete a listing 
application and the NLC must approve the application. Suppliers of spirits and wines are required 
to operate through the NLC warehouse and relate d distribution systems. The mark-up structure 
applied is the same regardless of product origin.  The mark-up structure for spirits, wines and beer 
is applied to landed cost and consists of a combination of a flat fee and a percentage of landed 
cost. Provincial and federal taxes including the Harmonized Sales Tax and a recycling container deposit are also added to determine final retail price.  
 G/STR/N/16/CAN 
 
- 27 - 
 
  The following details the number of Agency Stores and Corporate Stores from Fiscal 2013-14 to 
2014-15:   Year 
Corporate  Agency  
2013-14 27 136 
2014-15 27 142  
Note:  Corporate includes retail outlets which serve the general public plus outlets which serve 
Agency Stores and the Licensee trade exclusively.  
NOVA SCOTIA 
 
ACTS AND REGULATIONS  
- The Liquor Control Act,  R.S.N.S 1989, c.260 and the regulations thereto, and their 
amendments. 
 
SUMMARY OF LIQUOR MARKETING PRACTICES 
 Importation of liquor is done through the Nova Scotia Liquor Corporation (NSLC). In 2001, the NSLC was transformed from a Commission into a provincial Crown Corporation and renamed the 
Nova Scotia Liquor Corporation. The NSLC's listing policies provide equal access to all products 
regardless of origin based on category management principles. Suppliers, of both domestic and imported products, are required to operate through the NSLC central warehouse and related 
distribution system. Under certain terms and condit ions, beer suppliers not brewing in the Province 
with sales (within Nova Scotia) of one million equivalent dozen may be granted the right to operate a separate warehouse facility. All products, regardless of origin, may be sold in the 
103 liquor stores operated by the NSLC. There ar e also 60 small businesses serving as NSLC 
agency stores, 4 private wine and specialty stores, and 62 manufacturer's on-site outlets permitted to sell their products directly to consumers, licensed establishments and the 4 private wine and speciality stores, as well as at Farmers' Markets that generally operate one day of the 
weekend. 
 Mark-ups are established by package size within product categories and are the same regardless 
of product origin within a given category. All products which go through the warehouse are 
charged the same cost-of-service within a given category.   
ONTARIO 
 ACTS AND REGULATIONS  
- Liquor Control Act , R.S.O. 1990, c. L.18;  
- Alcohol and Gaming Regulation and Public Protection Act, R.S.O. 1996, c. 26;  
- Liquor Licence Act, R.S.O. 1990, c. L.19;  
- and the regulations thereto, and their amendments.  
 SUMMARY OF LIQUOR MARKETING PRACTICES 
 
Ontario's beverage alcohol distribution and retail system is characterized by a mix of private and public operations. The Liquor Control Board of Ontario (LCBO) and the Alcohol and Gaming Commission of Ontario (AGCO), both government agencies, are the primary bodies responsible for 
controlling the manufacture, movement and sale of beverage alcohol within the province, 
respectively through the Liquor Control Act  (LCA) , and the Alcohol and Gaming Regulation and 
Public Protection Act (AGRPPA). The Liquor Licence Act sets the conditions under which a person 
may keep for sale, offer for sale, or sell liquor under a licence or permit issued under the act . 
This includes, for example, manufacturers, manufacturers' representatives, bars, restaurants, hotels and persons selling or serving liquor on special occasions. 
 
The LCBO is responsible for importing liquor into  Ontario, transporting and selling domestic and 
imported spirits, wine and beer. The agency also tests products for quality control and safety, fixes 
liquor prices, and controls the warehousing of beverage alcohol. G/STR/N/16/CAN 
 
- 28 - 
 
  The LCBO establishes and operates retail liquor st ores across Ontario, including its agency stores 
in smaller communities. All suppliers, domestic and foreign, have equal access to LCBO's purchasing system. All liquor sold by the LCBO must meet its listing criteria and gross profit quotas. The LCBO shares marketing costs with su ppliers. Suppliers or their agents determine the 
prices at which products are sold to the LCBO. Th e LCBO applies standard pricing formulas to the 
supplier price to determine the retail price.   
Other authorized retailers include private beer stores, grocery stores, private duty-free stores and 
manufacturers' retail stores (winery stores on- and off-site, and on-site beer and spirits stores) authorized under AGRPPA to sell exclusively their domestic products. Sales of imported products not sold in LCBO stores can be ordered through LCBO's Private Order program and by 
LCBO-authorized sacramental wine vendors for sacramental purposes.  
 The number of private off-site stores is limited by the Canada-United States FTA and the NAFTA. 
Certain restrictions on the operation of off-site stores are also contained in the Canada-EC 
Agreement concerning Trade and Commerce in Alcoholic Beverages (as modified by the Canada-EC Agreement on Trade in Wines and Spirit Drinks).  
 
Brewers Retail Inc. (BRI) is a privately owned company operating beer stores under the authority of AGRPPA. It sells domestic and imported beer to the public and is the primary distribution 
channel for beer in the province. BRI purchases its imported brands from the LCBO. 
 
Foreign beer manufacturers, like their domestic counterparts, have the option of distributing from LCBO warehouses to retail outlets. The LCBO app lies charges to domestic and imported beer based 
on the worldwide production volume of the suppli er. Domestic beer sold in the Beer Store, an 
on-site manufacturer's store or in a licensed establishment is subject to beer taxes under AGRPPA. These volume taxes are equivalent to the volume charges applied by the LCBO. 
 
PRINCE EDWARD ISLAND 
 ACTS AND REGULATIONS 
 
- Liquor Control Act and Regulations, R.S.P.E. I. 1988, c.L-14 and the regulations thereto, and 
their amendments.  
 
SUMMARY OF LIQUOR MARKETING PRACTICES  
Importation of alcoholic beverages into Prince Edwa rd Island (P.E.I.) is done through the P.E.I. 
Liquor Control Commission. All suppliers have fu ll and equal access to th e P.E.I.L.C.C. listing 
process. Listed products receive distribution to the entire retail system. Marketing programmes are available to all suppliers on an equal access basis.  
 
The P.E.I.L.C.C. maintains a retail system of 18 st ores and 8 agency stores. This system is the 
exclusive retailer of all alcoholic beverages in th e Province, with the exception of 13 manufacturers 
on-site outlets (breweries, distilleries or wineries), and 2 farm-gate stores permitted to sell their 
own product directly to consumers. In addition , approximately 465 establishments are licensed for 
on premise consumption. These licensees purchase exclusively through the P.E.I.L.C.C. retail 
system. The Province also licences 7 ferment-on-p remises locations that provide facilities to the 
general public to brew their own beer or wine from kits.   The following mark-up structure is used to calculate the retail price of imported and domestic 
products: manufacturers' price, customs/excise, freight, an applicable mark-up applied to landed 
costs (differs per category), Provincial Health Tax (25%), Harmonized Sales Tax (14%) and bottle deposit.  
 G/STR/N/16/CAN 
 
- 29 - 
 
  QUEBEC 
 ACTS AND REGULATIONS  
-  Act respecting the Société des alcools du Québec  (RSQ, c. S-13, s. 16) 
 SUMMARY OF LIQUOR MARKETING PRACTICES 
 
The Société des alcools du Québec  (SAQ) is an independent, publicly owned commercial 
corporation administered by a board of directors. It has sole authority over the importation, delivery, taking or transportation of any intoxicati ng liquor in Quebec, whether produced in Canada 
or abroad.  
 The SAQ distributes alcoholic beverages to its own network of 406 government stores and 
438 agencies, as well as a network of grocery and corner stores that account for over 
9,000 outlets. Products for distribution are warehous ed in two distribution centres with a combined 
storage capacity of 4,400,000 cases. 
The selection, purchase and merchandising of produc ts are determined by principles defined in the 
SAQ's Purchasing and Merchandising Policy.   Wines without a varietal indication or appellation of origin designation that are bottled in Quebec 
may be sold in grocery stores, along with beers and light ciders. Wines with a varietal indication or 
appellation of origin designation and spirits may only be sold in SAQ outlets.   
Suppliers are responsible for promoting their produc ts. The services of a marketing agent are also 
used. Market forces determine quantities to be  imported. A uniform mark-up, by category of 
product, is applied to the cost price of the products, whether imported or domestic. Revenues are 
paid in the form of dividends to the sole shareholder, Quebec's Minister of Finance. 
 
SASKATCHEWAN 
 
ACTS AND REGULATIONS 
 - The Alcohol and Gaming Regulation Act, 1997 being Chapter A-18.011 of the Statutes of 
Saskatchewan, 1997 (1 February 2003) as am ended by the Statutes of Saskatchewan, 
1998, c.16; 2000, c.36; 2002, c.27 and 42; 2003, c.15; 2004, c.67; 2005, c.3 and 21; 2007, c.10; 2008, c.8' and 2010, c.25; 2013, c.P-38.01, c.2 and c.29; 2014, c.7 and c.11; 
and 2015, c.1. 
 SUMMARY OF LIQUOR MARKETING PRACTICES  
The Saskatchewan Liquor and Gaming Authority (SLGA) has authority over the manufacture, 
possession, sale and delivery of beverage alcohol in  Saskatchewan, and is the importer of record 
for all wine, spirits and beer imported into Sa skatchewan. The SLGA maintains a broad listing 
policy that applies equally to both imported and domestic products. Further details are contained 
in the SLGA Listing Policy.   
It is the policy of the SLGA to deal directly with the supplier in the country of origin. Listing 
application forms, and product and supplier prof iles must be submitted or approved by the 
supplier.  
The SLGA operates 75 retail outlets in Saskatch ewan. In addition, the SLGA has granted authority 
to approximately 185 operators of private business establishments (agencies) in small rural communities to sell beverage alcohol products and to four full line private retail stores, two each in 
Saskatoon and Regina. 
 The rules governing access to points of sale apply equally to domestic (including in-province) and 
foreign suppliers. Audited cost-of-service charges are applied to all imported products distributed 
through the SLGA system.  G/STR/N/16/CAN 
 
- 30 - 
 
  NORTHWEST TERRITORIES 
 ACTS AND REGULATIONS  
- Liquor Act , R.S.N.W.T. 1988, c. L-9 as amended by the Statues of the Northwest Territories 
1991-92, c.38; 1994. c.19; 1995, c.11; 1998, c.17. c.21; 2002, c.10, c.20. 
 
- Liquor Regulations , R.R.N.W.T. 1990, c.L-34 as amended by the Statues of the Northwest 
Territories 1992, R-087; 1993, R-027; 1995, R-035, R-036; 1996, R-048; 1997, R-052; 2000, R-055; 2001, R-067; 2002, R-033, R-034, R-035, R-074; 2004, R-031.  
 
SUMMARY OF LIQUOR MARKETING PRACTICES 
 The Northwest Territories Liquor Commission (NTL C) was established under Part II of the Liquor 
Act. It is responsible for the operation of liquor sa les and the purchase and distribution of liquor in 
the Northwest Territories through the Liquor Revolving Fund.   
The NTLC uses a flat rate per litre mark up to generate a specific level of revenue from the sale of 
liquor. Product cost, freight, container deposit, recycling fee, general sales tax, retail, warehousing and administrative costs are also included with flat rate mark-up when establishing a final price.   
A person who is eligible to purchase and consume liquor in the Northwest Territories may 
personally import 1.5 litres of wine, 1.14 litres of spirits, or 8.52 litres of beer. An import permit is required to import quantities greater than the allowable amounts.  
 
Retail and warehousing operations are carried out by 7 private sector contractors and 1 private warehousing outlet operators who are under license from the NTLC. 
 
NUNAVUT 
 ACTS AND REGULATIONS 
 
- Liquor Regulations , R.R.N.W.T. 1990, c.L-34, as duplicated for Nunavut by section 29 of the 
Nunavut Act . 
 
SUMMARY OF LIQUOR MARKETING PRACTICES  
The Nunavut Liquor Commission is responsible for the purchasing, warehousing and distribution of 
all alcoholic beverages as well as permitting and enforcement in Nunavut.   Alcohol is allowed to be purchased in 5 Nunavut communities. Those living in the 14 "restricted 
communities" are able to order alcohol products from warehouse distribution centres but require 
approval from an alcohol education committee. There are 6 "dry communities" where alcohol is completely banned. Product price, freight and a refundable container deposit are included in the 
final price of any alcohol beverages.  
 The Nunavut Liquor Licensing Board is responsible for the issuance, renewal, transfer, cancellation 
or suspension of any liquor licenses, as well as, the enforcement of all liquor related regulations 
and restrictions.   G/STR/N/16/CAN 
 
- 31 - 
 
  YUKON 
 ACTS AND REGULATIONS  
- Liquor Act, Chapter 140 , R.S.Y. 2002, c.140.  
- Liquor Regulations Respecting the Sale and Consumption of Liquor.   
SUMMARY OF LIQUOR MARKETING PRACTICES 
 The Yukon Liquor Corporation (YLC) is mandated with  the purchase, distribution, and sale of liquor 
products in the Yukon. The YLC operates a central warehouse and distribution centre in 
Whitehorse, and six Yukon Liquor Stores. Five of th ese liquor stores are in rural locations and also 
provide specific Territorial Agent services on behalf of other government departments. The Corporation transfers all its net income to the Government of Yukon. It is responsible for the 
Liquor Act and Liquor Regulations . In addition, the Corporation collects and remits a 12% tax on 
the retail value of all liquor products sold in the Yukon, as required by the Liquor Tax Act .  
 
Domestic products are purchased from various locations across Canada. All imported products are 
purchased through the British Columbia Liquor Distribution Branch, with the exception of special orders which may be sourced directly by the YLC if  not available through the BC Liquor Distribution 
Branch. There are no restrictions on imported liquor products considered for purchase by the YLC 
in relation to category or origin.  
 To determine retail prices, the YLC applies standa rd pricing formulas that include the producer's 
price, federal duty and excise tax, freight, YL C mark-up, refundable container deposit, and a 
non-refundable recycling surcharge, in addition  to the federal Goods & Services Tax and the 
12% Yukon liquor tax.  
 
YLC's shelf prices include the landed cost for the product, refundable deposits, recycling fees and a liquor tax. Most shelf prices across the country show product prices without taxes and deposits, which are applied at the point of purchase.  
  G/STR/N/16/CAN  
 
- 32 - TABLE I 
STATE TRADING: PROVINCIAL AND TERRITORIAL LIQUOR CONTROL AUTHORITIES 
STATISTICAL INFORMATION, IMPORTS 
Description of 
the product Year1 Total quantity 
imported2 Quantity imported 
by STEs Per-unit import 
price3 Average representative 
domestic sales price4 Mark-up National 
production5 
1  2 3 4 5 6 7 
  000' Litres/LPA/ 000' Litres CAD/Litre CAD/Litre  CAD'000 
Beer 22.03 2014 350,333 326,848 1.89 4.36 … 5,158,292 
2015 369,246 354,171 1.94 4.42 … 5,323,568 
Wine6 
22.04 22.05 22.06 2014 410,956 287,963 5.57 15.76 … 974,389 
2015 442,156 294,774 5.56 16.00 … 1,110,439 
Spirits7 
22.08 2014 57,466 76,724 14.64 29.91 … 974,366 
2015 34,452 84,654 26.22 28.99 … 1,079,140 
Notes:   "…" Indicates not applicable 
1. Data in columns 3 and 5 are for fiscal years ending on 31 March  (2013-14 and 2014-15). All other data is for calendar years . Figures in column 3 and 5 
include coolers separated by type (i.e. beer coolers, wine coolers, spirit coolers). 
2. Not all products referred to as beer, wine  or spirits are measured in the same unit  of measure. For beer, data includes all imports measured in litres. For wine, 
data includes all imports measured in litres and in litres of pure alcohol (LPA), and kilograms (KG). For spirits, data include s all imports measured in LPA. 
Imports may include supplementary imports, including products imported for further processing and re -exported under the import for re-export program.  
3. Average import prices are calculated as the value of imports by STEs (the price in the country of origin) divided by the qua ntity of imports by STEs.  
4. Average representative domestic sales price is calculated as the value of domestic sales of im ported products by the STEs (w ith the goods and services tax 
and container tax) divided by the volu me of import sales by the STEs.  
5. Production figures are represented by th e value of shipments, and are calculated using the North American Industrial Classif ication System (NAICS) rather 
than HS codes. Quantity data is not available.  Data for wine is a Statistics Canada estimate. 
6. Wine includes vermouth, coolers and ciders (exc ept Columns 3 and 5, which excludes vermouth).  
7. Spirits under column 3 may also include some types of cooler s. For total quantity imported, spirits figures in previous noti fications included HS codes 2303.30 
and 2106.90. Figures with those HS codes included are: 2014 – 730,910; 2015 – 775,996.  
Sources: Column 2, 4: Statistics Canada. 
Column 3, 5: Statistics Canada, "Sales of Alcoholic Beverages of Liquor Authorities, Wineries and Breweries". CANSIM, Table 183 -0024. 
Column 7: Statistics Canada, Manufacturers' sales, inventories, orders and inventory to sales ratios, by NAICS, Canada. CANSIM,  Table 304-0014.  
  G/STR/N/16/CAN  
 
- 33 - TABLE II 
STATE TRADING: PROVINCIAL AND TERRITORIAL LIQUOR CONTROL AUTHORITIES 
STATISTICAL INFORMATION, EXPORTS 
Description of 
the product Year1 Total quantity 
exported2 Quantity 
exported 
by STEs3 Average 
Procurement 
price Average representative domestic sales 
price for sales of domestically-
produced alcohol Per-unit export 
price National 
production4 
1  2 3 4 5 6 7 
  '000 Litres/LPA '000 Litres CAD/Litre CAD/Litre CAD/Litre/LPA/KG6 $CAD'000 
Beer 22.03 2014 212,639 - … 3.79 0.85 5,158,292 
2015 206,671 - … 3.89 0.90 5,323,568 
Wine5 
22.04 22.05 
22.06 2014 74,452 - … 10.41 1.29 974,389 
2015 85,678 - … 10.54 1.35 1,110,439 
Spirits 
22.08 2014 164,809 - … 18.77 2.99 974,366 
2015 156,089 - … 19.07 3.49 1,079,140 
Notes:  "-" indicates zero. 
"…" indicates not applicable. 1. Data in column 5 is for fiscal years ending on 31 March (2013-14 and 2014-15). All other data is for calendar years. 2. Does not include foreign produce re-expor ted. Spirits figures in previous notificati ons included exports in HS codes 2303.30  and 2106.90. Figures with those 
HS codes included are: 2014 – 654,197; 2015 – 645,784. 
3. Provincial and Territorial liquor contro l authorities have no authority over the exportation of alcoholic beverages and no j urisdiction to export such products.  
4. Production figures are represented by th e value of shipments, and are calculated using the NAICS rather than HS coding. Quan tity data is not available. Data 
for wine is a Statistics Canada estimate.  
5. Wine includes vermouth, coolers and ciders (except Column 5, which excludes vermouth).  
6. In previous notifications, per unit export price for spirits included HS codes 2303.30 and 2106.90. With those included, fig ures are: Figures for 22.08 only are: 
2014 – 0.95; 2015 – 1.03  
Sources: Column 2, 6: Statistics Canada. 
Column 5: Statistics Canada, "Sales of Alcoholic Beverages of Liquor Authorities, Wineries and Breweries". CANSIM, Table 183-00 24. 
Column 7: Statistics Canada. Manufacturers' sales, inventories, orders and inventory to sales ratios, by NAICS, Canada. CANSIM,  Table 304-0014.  
  G/STR/N/16/CAN  
 
- 34 - TABLE III 
STATE TRADING: PROVINCIAL AND TERRITORIAL LIQUOR CONTROL AUTHORITIES 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
Description of the product Year1 Domestic purchases 
by STEs National production2 Domestic Sales of Domestically-
Produced Alcohol, by STEs National Consumption3 
1  2 3 4 5 
    CAD'000 '000 litres '000 litres 
Beer 
22.03 2014 … 5,158,292 1,920,282 2,247,130 
2015 … 5,323,568 1,908,505 2,262,676 
Wine4 
22.04 2014 … 974,389 179,708 467,671 
2015 … 1,110,439 190,888 485,662 
Spirits 
22.08 2014 … 974,366 155,450 232,174 
2015 … 1,079,140 152,288 236,942 
Notes:   "…" not available.  
1. Data in columns 4 and 5 are for fiscal years ending on 31 March (2011-12 and 2012-13). All other data is for calendar years.  
2. Production figures are represented by th e value of shipments, and are calculated using the NAICS rather than HS coding. Quan tity data is not available. 
Data for wine is an estimate.  
3. National consumption is represented by th e total quantity of domestic sales of impo rted and domestic products. It does not i nclude homemade beer and wine, 
wine and beer manufactured through brew-on- premises operations, all sales to Canadian  residents in duty free shops and any othe r unreported transactions. 
Export sales are not included. Figures in column 4 and 5 include c oolers separated by type (ie. beer coolers, wine coolers, spi rit coolers). 
4. Wine includes vermouth, coolers and ciders for column 2.  
Sources: Column 3: Statistics Canada. Manufacturers' sales, inve ntories, orders and inventory to sales ratios, by NAICS, Canada . CANSIM, Table 304-0014. 
Column 4, 5: Statistics Canada, "Sales of Alcoholic Beverages of  Liquor Authorities, Wineries and Breweries". CANSIM, Table 183 -00245. 
 
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