G/STR/N/15/CAN  
 
8 July 2014  
(14-3740)  Page: 1/33  
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 23 June 2014, 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 2011/2012 to 2012/2013.  G/STR/N/15/CAN 
 
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  1  ENUMERATION OF STATE TRADING ENTERPRISES 
1.1  Identification of state trading enterprises Canadian Dairy Commission (CDC). 
 
1.2  Description of products affected (inc luding tariff item number(s) encompassed in 
product description) 
04.05  Butter and other fats and oils derived from milk; dairy spreads. 
 
2  REASON AND PURPOSE 
2.1  Reason or purpose for establishing an d/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.  
 
2.2  Summary of legal basis for granting th e relevant exclusive or special rights or 
privileges, including legal provisions and summa ry 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 . The Department of Foreign Affairs and 
International Trade is responsible for the administration of the Import Control List. Information respecting the importation of butter may be obtained at the website of the Department of Foreign 
Affairs and International Trade Canada, http://www.international.gc.ca/controls-
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 qu ota (TRQ) for butter on 1 August 1995, import 
permits for the butter TRQ have been allocated by the Export and Import Controls Bureau (EICB) 
of the Department of Foreign Affairs and International Trade Canada to the CDC annually with the 
proviso that these imports be directed to the further processing sector.  
 3  DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
3.1  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 processor margin an d the support prices for butter and skim milk 
powder, as well as administering other marketing programmes. 
 
3.2  Specification of exclusive or special righ ts or privileges enjoyed by the state trading 
enterprise 
Since the implementation of the tariff rate qu ota (TRQ) for butter on 1 August 1995, import 
permits for the butter TRQ have been allocated by the EICB of the Department of Foreign Affairs G/STR/N/15/CAN 
 
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  and International Trade to the CDC annually with the proviso that these imports be directed to the 
further processing sector.  
 3.3  Type of entities other than the state tr ading 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 EICB. The allocation of import permits for 
other dairy products subject to TRQs is administered by EICB under the authority of the Export 
and Import Controls Act  (information respecting the importation of dairy products may be obtained 
at the website of the Department of Foreign Affairs and International Trade, http://www.international.gc.ca/cont rols-controles/index.aspx?view=d ). 
 
3.4  How import/export levels are estab lished by the state trading enterprise 
Pursuant to Canada's Uruguay Round market access commitments, a butter tariff rate quota 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 EICB.   
3.5  How export prices are determined 
The CDC, in any export sale, receives prices resulting from normal commercial negotiations based 
on market conditions.   
3.6  How the resale prices of im ported 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. 
 
3.7  Whether long-term contracts are nego tiated by the state trading enterprise. 
Whether the state trading enterprise is used to fulfil contractual obligations entered into 
by the government 
Not applicable.  
 3.8  Brief description of market structure 
The major participants in the Canadian dairy industry are dairy producers and dairy processors. 
In 2013, dairy producers operated approximately 12,234 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, the CMSMC sets a nation al 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, G/STR/N/15/CAN 
 
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  other products of milk constituents, butter, chees e, other dairy preparations and ice cream. The 
Department of Foreign Affairs and International Trade is responsible for administering these TRQs.   4  STATISTICAL INFORMATION 
See attached Tables I - III.  
 5  REASON WHY NO FOREIG N TRADE HAS TAKEN PLACE ( AS APPROPRIATE)  
Not applicable.  
 6  ADDITIONAL INFORMATION ( AS APPROPRIATE) 
Not applicable.  
  G/STR/N/15/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 
2011-2012 9,131 3,274 4.72 4.69 … 98,255 
2012-2013 8,213 3,254 3.44 4.12 … 96,861 
 
 
Notes:  "…"  indicates not applicable. 
1. Total quantity imported includes supplementary imports, incl uding products imported for furt her 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/15/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 CA D/kg CAD/kg CAD/kg >000 kg 
2011-2012 394 0 0.00 9.66 0.00 98,255 
2012-2013 3,092 2,438 3.48 9.59 3.40 96,861 
 
Notes:  1. Comprises the average repres entative 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/15/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 
2011-2012 25,671 98,255 18,710 100,745 
2012-2013 23,687 96,861 24,918 101,571 
 
 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 fo r all uses in Canada. It do es 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/15/CAN 
 
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  1  ENUMERATION OF STATE TRADING ENTERPRISES 
1.1  Identification of state trading enterprises Canadian Wheat Board (CWB). 
 
1.2  Description of products affected (inc luding tariff item number(s) encompassed in 
product description) 
10.01 Wheat 
10.03 Barley 
12.05 Canola  2  REASON AND PURPOSE 
2.1  Reason or purpose for establishing an d/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 is to market grain for the benefit of producers who choose to 
deal with the Corporation.  
 
2.2  Summary of legal basis for granting th e relevant exclusive or special rights or 
privileges, including legal provisions and summa ry of statutory or constitutional powers 
The CWB was established under the Canadian Wheat Board Act . Pursuant to that Act, the CWB's 
powers included the authority to buy, take delivery of, store, transfer, sell, ship or otherwise 
dispose of grain. Only wheat and barley produced  in the CWB "designated area", which included 
Manitoba, Saskatchewan, Alberta and the Peace Rive r area of British Columbia, were marketed by 
the CWB. 
 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 
can sell their Western wheat and barley to the buyer of their choice. The CWB is no longer 
restricted to marketing wheat and barley and has begun to expand marketing efforts, beginning in 
the 2012-13 crop year with canola.  
 3  DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
3.1  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 barley into grain elevators and railway cars for inter-provincial movement and shipment to export position.   
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 CW B 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. 
 G/STR/N/15/CAN 
 
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  Beginning on 1 August 2012, the Canadian Wheat Board (Interim Operations) Act  allows 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 an d leveraging its marketing experience to garner 
returns for producers.  
 3.2  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 barley. The operations of CWB changed to marketing 
grain in a commercial environment, for the benefit of producers who choose to deal with CWB. The 
CWB also has Government guarantees on certain initial payments, borrowings, and credit sales.  
 
On or before 1 August 2017, the CWB will eith er become a private company or be wound up. 
 3.3  Type of entities other than the state tr ading enterprise that are allowed to engage 
in exportation and conditions for participation 
Accredited exporters 
 
Prior to 1 August 2012, export sales of western Canadian wheat and barley could involve the CWB 
only, or both the CWB and its accredited exporters (AEs). AEs were national and multinational companies authorized to purchase grain from the CWB for resale to customers and other 
exporters. 
 Whether a sale was completed directly by the CWB or through an AE depended primarily upon the customer. Often in a number of cases, negotiations to establish grade, quantities, prices, shipping 
periods and other terms and conditions were carried out directly between the CWB and the 
importer. The CWB negotiated these sales either free on board (FOB) or cost and freight (C&F).   
For a significant number/proportion of sales, th e CWB negotiated the basic parameters of the 
contract with the end buyer and then a contract was completed with an AE, and the AE in turn with the end buyer. The sale and shipment were then executed through the AE.  
 
AEs also bought from the CWB for specific destinations and then re-sold the grain on their own. In this circumstance, the AE conducted all negotiations, bought the grain from the CWB on a cash basis, and assumed responsibility for its foreign exchange, documentation, and ocean freight, if 
required.  
 The CWB was in daily contact with AEs. Two-way communication with AEs kept the CWB abreast of 
price indications and market developments, and kept the export trade aware of CWB price levels 
by market and shipping period. In this respect, the CWB behaved just as any private grain company did, offering quotes and trading grain to interested parties, and was fully integrated as a 
commercial participant. As a result of this process, the private trade had comprehensive 
knowledge of what CWB grain was available at any time for any delivery period.   Post 1 August 2012, any company can export Cana dian 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 (PDS) program. By using this  program, the farmers essentially took on a role 
similar to that of an AE by purchasing grai n from the CWB. After 1 August 2012, farmers can 
export their grain directly without consulting or working with the CWB.  G/STR/N/15/CAN 
 
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  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.  
 
3.4  How export levels are established by the state trading enterprise 
The CWB makes sales of wheat and barley for export in accordance with commercial 
considerations such as price, quality, availabili ty, marketability, and transportation costs. The 
volume of grain exported is primarily a function of the quality and volume produced and offered for 
sale by farmers through the CWB and of demand. If market conditions warrant, the CWB can defer sales until the next crop year. This system of establishing export levels became open to any 
company after 1 August 2012. 
 3.5  How export prices are determined 
The CWB determines export prices in line with prevailing market conditions, in order to maximize 
revenues from sales. Commercial considerations taken into account in this respect include relevant US futures exchange prices and those of compet ing suppliers from other origins. For example, 
depending on the type and quality of the grain involved, the CWB in many cases derives its prices 
from those established on the Minneapolis Grain Exchange, Chicago Board of Trade, and Kansas 
City Board of Trade. Where the relevant competition is wheat, from an origin other than the U.S., the price of that wheat must be considered. In these and other cases, for example, for malting 
barley and durum wheat, effective futures contract s do not exist. Therefore, CWB prices for these 
products are based on market intelligence from various sources regarding values at which the competition was offering and trading. This process is essentially the same as the process followed 
by other international traders. Post 1 August 2012, any company can export Canadian wheat and 
barley.  
3.6  How the resale prices of im ported 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 CWB has no authority over the importation of wheat 
or barley, nor did it import either product or any other grain in the 2011-12 and 2012-13 years.  
 
3.7  Whether long-term contracts are nego tiated 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. While historically 
the CWB did enter into such contracts, long-term contracts in today's global marketplace are 
essentially non-existent. 
 The CWB was run by a farmer-majority board of directors in 2011-12 and a solely government appointed board of directors in 2012-13. However, the CWB was not used to fulfil contractual 
obligations entered into by government. 
 3.8  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, are market-based. Domestic prices are a function of the relevant US market prices. 
 
Up until December 2013, the CWB did not own el evator facilities. Even now, 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 March 2012, there were 345 primary elevators that were licensed by the Canadian G/STR/N/15/CAN 
 
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  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. 
 
Starting 1 August 2012, the CWB is operating in competition with other grain handling companies for producers' grain and for customers to sell the grain to. In addition, the CWB is competing for 
the capacity to manage the logistics of receiv ing grain from farmers to delivering grain to 
customers.   
To function in this environment, CWB has established agreements with grain handling companies 
in Western Canada to receive and ship grain. Th e CWB originates grain from farmers and offers 
farmers the pooling and cash options, and also trades directly with third parties. Also, the CWB has begun establishing a network of grain handling assets. 
 
The CWB does 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 Foreign Affairs, Trade and 
Development (DFATD), under the authority of the Export and Import Permits Ac t. Further 
information is available at the DFATD's Export and Import Controls Bureau web site, located at: http://www.international.gc.ca/contro ls-controles/index.aspx?lang=eng  
 
4  STATISTICAL INFORMATION 
See attached Tables I – III.  
 
5  REASON WHY NO FOREIG N TRADE HAS TAKEN PLACE ( AS APPROPRIATE)  
Not applicable. 
 
6  ADDITIONAL INFORMATION ( AS APPROPRIATE)  
Governance 
 
Amendments to the Canadian Wheat Board Act  in 1998 established a new governance structure for 
the CWB. This legislation continued the CWB as a shared governance corporation, without share capital. As a result of the amendments, effective 31 December 1998 the CWB ceased to be an agent of Her Majesty and a Crown corporation within the meaning of the Financial Administration 
Act. The Corporation was governed by 15 directors, 10 of whom were directly elected by farmers 
and other directors were appointed by the Government of Canada. The president and chief executive officer was appointed by the Government of Canada after consultation with the board of 
directors. 
 Effective 15 December 2011, as a result of the passage of the Marketing Freedom for Grain 
Farmers Act , the Corporation is governed by a board of directors that consists 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 is responsible for directin g and overseeing the business and affairs of the 
CWB.  
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 G/STR/N/15/CAN 
 
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  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.  
 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 can 
retain earnings, in anticipation of becoming a private company in the near future.  
Transitioning to a Commercialized CWB 
 
The Marketing Freedom for Grain Farmers Act  ended the CWB's marketing monopoly for Western 
Canadian wheat and barley as of 1 August 2012. Th is legislation also required the CWB to operate 
as a voluntary marketing entity for up to five years, and to develop a plan to commercialize as a 
non-government, private organization. During this period, under the authority of the  Marketing 
Freedom for Grain Farmers Act , the CWB may be commercialized. If the CWB is not 
commercialized by 1 August 2017, the wind up provisions of the legislation will come into effect 
and the CWB will be dissolved.  
Further information about the CWB and its operations, is available at http://www.cwb.ca/ . 
  
  G/STR/N/15/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 2011-2012 78,000 - --- --- --- 25,288,000 
2012-2013 74,000 - --- --- --- 27,205,000 
Barley 
10.03 2011-2012 13,000 - --- --- --- 7,892,000 
2012-2013 19,000 - --- --- --- 8,012,000 
Canola 
12.05 2012-2013 128,000 - --- --- --- 13,869,000 
 
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 Fiel d Crops (2013-01-24 and 2014-01-28), Agriculture and Agri-Food Canada . 
  
  G/STR/N/15/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 2011-2012 17,506,000 not available not available not available not available 25,288,000 
2012-2013 19,442,000 not available not available not available not available 27,205,000 
Barley 
10.03 2011-2012 2,154,000 not available not available not available not available 7,892,000 
2012-2013 2,059,000 not available not available not available not available 8,012,000 
Canola 
12.05 2012-2013 7,261,000 not available not available not available not available 13,869,000 
 
Notes:  1.  Exports include grain prod ucts, while excluding oilseed products. 
 Sources: Column 2, 7: Canada: Outlook for Principal Field Crops (2013-01-28 and 2014-01-24)   Columns 3, 4, 5, 6: Canadian Wheat Board. As CWB is compet ing for grain with other entities, this information is not availabl e as it is commercially sensitive. 
  
  G/STR/N/15/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 2011-2012 17,674,910 25,288,000 … 8,712,000 
2012-2013 not available 27,205,000 … 8,712,000 
Barley 
10.03 2011-2012 1,307,417 7,892,000 … 6,140,000 
2012-2013 not available 8,012,000 … 6,262,000 
Canola  
12.05 2012-2013 not available 13,869,000 … 6,834,000 
 
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) us ed 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 (2013-01-28 and 2014-01-24) G/STR/N/15/CAN 
 
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  1  ENUMERATION OF STATE TRADING ENTERPRISES 
Freshwater Fish Marketing Corporation. 
 2  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 governments of Alberta, Saskatchewan, Manitoba, Ontario, 
and the Northwest Territories, the FFMC has the excl usive 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. Ontario (effect ive 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 "a greement 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.   
3  DESCRIPTION OF THE FUNC TIONING 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/15/CAN 
 
- 17 - 
 
   
4  STATISTICAL INFORMATION 
See attached Tables I – III.  
 
5  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.   
 
6  ADDITIONAL INFORMATION 
Not applicable.  
  G/STR/N/15/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 2012-2013 FFMC is not involved in imports 
  
  G/STR /N/15/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 
representativ
e 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 - 
2011-2012 43,755 16,076 1.24 3.22 3.53 - 
2012-2013 38,726 13,775 1.28 3.80 3.73 - 
 
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/15/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)  
2011-2012 23,793 - 3,016 - 
2012-2013 22,969 - 2,829 - 
 
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/15/CAN 
 
- 21 - 
 
  1  ENUMERATION OF STATE TRADING ENTERPRISES 
1.1  Identification of state trading enterprises Provincial and Territorial Liquor Control Authorities.  
 
1.2  Description of products affected (inc luding 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.  
 
2  REASONS AND PURPOSE 
2.1  Reason or purpose for establishing an d/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.   
2.2  Summary of legal basis for gaining the relevant exclusive or special rights or 
privileges, including legal provisions and summa ry 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.  
 3  DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISES 
3.1  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.  
 3.2  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.   G/STR/N/15/CAN 
 
- 22 - 
 
  3.3  Types of entities other than state tradin g 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.   
3.4  How import/export levels are estab lished 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. 
 3.5  How export prices are determined 
Export prices are determined by the private trader.  
 3.6  How the resale prices of im ported 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
1, liquor control authorities have modified mark-up 
practices on alcoholic beverages to bring them into conformity with the GATT.2  
 3.7  Whether long-term contracts are nego tiated by the state trading enterprise. 
Whether the state trading enterprise is used to fulfil contractual obligations entered into 
by the Government. 
Not applicable. 
 
3.8  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 2012, the value of all alcoholic beverages produced in Canada stood at $6.7 billion compared to $6.1 billion in 2010.
3 Alcoholic beverage imports of all kinds amounted to $3.8 billion 
in 2013 while total exports stood at $919.8 million the same year.4  
 The brewing industry
5 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 
                                               
1 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 wine 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.   
2 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.   
3 Statistics Canada. Principal statistics for manufacturing industries, by North American Industry 
Classification System (NAICS). CANSIM, Table 301-0006. 
4 Statistics Canada.   
5 Canada’s brewing industry is defined by the NAICS (31212).   G/STR/N/15/CAN 
 
- 23 - 
 
  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 319 brewing and microbrewing establishments across the country.
6 The microbrewery industry has steadily grown in Canada, catering to niche tastes 
and regional markets. Canada's geography and th e 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 70.5 litres in 2013.
7  
 The Canadian wine industry
8 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 reached a high of 16.2 litres 2013.
9  
 The distillery industry
10 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 2013, Canadians consumed 7.3 litres of spirits per capita.
11  
 4  STATISTICAL INFORMATION 
The relevant statistical information is attached. See Tables I - III  
 5  REASON WHY NO FOREIGN TRADE HAS TAKEN 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.   
6  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.  
                                               
6 Statistics Canada. Canadian business patterns, location counts, employment size and NAICS, national 
industries, by Canada and provinces, December 2013. CANSIM, Table 551-0005. 
7 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. 
8 Canada's wine industry is defined by the NAICS (31213).   
9 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. 
10 Canada's distillery industry is defined by the NAICS (31214).   
11 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/15/CAN 
 
- 24 - 
 
   
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.  
 
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 31 March 2013 the LDB operated 195 government liquor stores. As of 31 March 2013 there 
was also a large private retail system consisting of 670 private liquor stores, 221 rural agency 
stores, 47 wine stores, and 279 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. A limited number of privately-
operated wine stores are restricted to selling British Columbia wines and manufacturer stores can only sell products made by that manufacturer.  
 
All liquor products sold in British Columbia must be registered with the LDB. The LDB determines which products are sold in government stores based on customer demand and operators of private 
outlets determine which products 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 retail price.  G/STR/N/15/CAN 
 
- 25 - 
 
   
MANITOBA 
 ACTS AND REGULATIONS 
 
- The Liquor Control Act , R.S.M. 1988, c.L160 and the regulations thereto, and their 
amendments, including:  
- The Liquor Control Act and Consequential Amendments Act , S.M. 1993.  
 SUMMARY OF LIQUOR MARKETING PRACTICES  
The Manitoba Liquor Control Commission (MLCC) is the importer of record for all liquor imported 
into Manitoba. All liquor sold in the Province must meet the MLCC's listing criteria. The criteria applies to all beverage alcohol in a uniform and non-discriminatory manner, irrespective of country 
of origin.  
 Spirits, wine, coolers and beer are warehoused by the MLCC and distributed to 56 government-
owned stores, 170 privately-owned agency stores, 8 specialty wine stores, 4 duty-free stores, and 
1,600 licensed premises. In addition, 5 privately- owned beer distributors warehouse and service 
the 56 government-owned stores, 252 privately- owned beer stores, and 1,600 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 category flat rate per litre to the landed cost. Minimum mark-ups apply to all 
products but there are no minimum prices, with the exception of single serve beer. The same 
category and minimum mark-ups are applicable to like products regardless of country of origin for 
products warehoused by the MLCC.  
 Audited cost of service differentials (commercial considerations) are applied at 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-up Structure document and are applied uniformly to all products regardless of origin. Minimum and maxi mum 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.  G/STR/N/15/CAN 
 
- 26 - 
 
   
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 am endments to the above legislation over the 2011-
2013 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.  
 
The following details the number of Agency Stores and Corporate Stores from Fiscal 2011-12 to 2012-13:  
 
 Year  Corporate  Agency 
 
 2011-12 24  131 
 2012-13 24  133 
 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. All beer suppliers, regardless of origin, with sales of one million equivalent 
dozen are permitted to operate a separate wareho use facility. All products, regardless of origin, 
may be sold in the 106 liquor stores operated by the NSLC. There are also 52 small businesses serving as NSLC agency stores, 4 private wine  and specialty stores, 12 manufacturer's on-site 
outlets (breweries or distilleries), and 14 farm-gate stores permitted to sell their own wine directly 
to consumers.   
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.   G/STR/N/15/CAN 
 
- 27 - 
 
  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.  
 
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 st ores, 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 supplier.  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.  
 G/STR/N/15/CAN 
 
- 28 - 
 
  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 19 st ores and 6 agency stores. This system is the 
exclusive retailer of all alcoholic beverages in th e Province, with the exception of 11 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 436 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 5 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%), Goods and Services Tax (5%), Provincial 
Sales Tax (10%), and bottle deposit.   
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 441 government stores and 443 
agencies, as well as a network of grocery and corner stores that account for over 9,000 outlets. 
Products for distribution are warehoused 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 amended 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. 
 G/STR/N/15/CAN 
 
- 29 - 
 
  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 79 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.   
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 G/STR/N/15/CAN 
 
- 30 - 
 
  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.  
 
YUKON 
 ACTS AND REGULATIONS 
 
- Liquor Act, Chapter 140 , R.S.Y. 2003, 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 from customers 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.   
The YLC applies standard pricing formulas to the supplier price and to the BC Liquor Distribution 
Branch price to the YLC, in determining the retail price. The retail price includes the producer price, federal duty and excise tax, freight, YLC 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.  
  G/STR/N /15/CAN  
 
- 31 - 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' 
Litre/LPA/KG 000' litres CAD/Litre CAD/Litre  CAD'000 
Beer 
22.03 2012 337,346 323,051 1.76 4.38 … 5,025,976 
2013 347,221 310,852 1.86 4.41 … 5,005,212 
Wine6 
22.04 
22.05 
22.06 2012 393,853 286,420 5.16 15.69 … 833,980 
2013 396,417 298,662 5.46 15.79 … 832,531 
Spirits7 
22.08 2012 563,965 71,711 22.30 30.88 … 1,036,922 
2013 643,250 74,403 17.15 31.58 … 1,003,342 
 
Notes:  "…" Indicates not applicable 
1. Data in columns 3 and 5 are for fiscal years ending on March 31 (2011-12 and 2012-13). All other data is for calendar years.  
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 spi rits, data includes all imports 
measured in LPA and KG. Imports may include supplementary imports,  including products imported fo r further processing and re-ex ported 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 volume of import sales by the STEs.  
5. Production figures are represented by the value of shipments,  and are calculated using the No rth American Industrial Classif ication System (NAICS) 
rather than HS codes. Quantity data is not availabl e. Data for wine is a St atistics 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 coolers.  
 Sources: Column 2, 4: Statistics Canada. 
Column 3, 5: Statistics Canada, "Sales of Alcoholic Beverages of Liquor Authorities, Wineries and Breweries". CANSIM, Table 183 -0015. 
Column 7: Statistics Canada, Manufacturers' sales, inventories, orders and inventory to sales ratios, by NAICS, Canada. CANSIM,  Table 304-0014.  
  G/STR/N/15/CAN  
 
- 32 - 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/KG '000 litres CAD/Litre CAD/Litre CAD/Litre/LPA/K
G $CAD'000 
Beer 
22.03 2012 249,428 - ... 3.88 0.78 5,025,976 
2013 237,404 - … 3.96 0.81 5,005,212 
Wine5 
22.04 22.05 22.06 2012 31,886 - … 9.91 1.83 833,980 
2013 49,058 - … 10.05 1.59 832,531 
Spirits 
22.08 2012 563,965 - … 20.97 0.91 1,036,922 
2013 643,251 - … 20.65 0.99 1,003,342 
 
Notes:  "-" indicates zero. 
"…" indicates not applicable. 1. Data in column 5 is for fiscal years ending on 31 March (2011-12 and 2012-13). All other data is for calendar years. 2. Does not include foreign produce re-exported.  3. Provincial and Territorial liquor control authorities have no authority over the exportation of alcoholic beverages and no j urisdiction to export such 
products.  4. Production figures are represented by the value of shipments,  and are calculated using the North American Industrial Classif ication System rather 
than HS coding. Quantity data is not available. Data for wine is a Statistics Canada estimate.  
5. Wine includes vermouth, coolers and ciders (exc ept Columns 3 and 5, which excludes vermouth).  
 Sources: Column 2, 6: Statistics Canada. 
Column 5: Statistics Canada, "Sales of Alcoholic Beverages of Liquor Authorities, Wineries and Breweries". CANSIM, Table 183-00 15. 
Column 7: Statistics Canada. Manufacturers' sales, inventories, orders and inventory to sales ratios, by NAICS, Canada. CANSIM,  Table 304-0014  
  G/STR/N /15/CAN  
 
- 33 - 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 2012 … 5,025,976 1,994,465 2,317,516 
2013 … 5,005,212 1,960,156 2,271,008 
Wine4 
22.04 
22.05 
22.06 2012 … 833,980 201,341 487,761 
2013 … 832,531 207,941 506,603 
Spirits 
22.08 2012 … 1,036,922 144,872 216,583 
2013 … 1,003,342 148,016 222,419 
 
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 the value of shipments,  and are calculated using the North American Industrial Classif ication System rather 
than HS coding. Quantity data is not avai lable. Data for wine is an estimate.  
3. National consumption is represented by the total quantity of domestic sales of impo rted and domestic prod ucts. It does not i nclude homemade beer 
and wine, wine and beer manufactured through brew-on-premises op erations, all sales to Canadian residents in duty free shops an d any other unreported 
transactions. Export sales are not included.  
4. Wine includes vermouth, coolers and ciders (except Columns 3 which excludes vermouth).  
 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 -0015. 
 
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