WORLD TRADE  
ORGANIZATION  G/STR/N/5/CAN 
G/STR/N/6/CAN 
G/STR/N/7/CAN G/STR/N/8/CAN G/STR/N/9/CAN G/STR/N/10/CAN 
G/STR/N/11/CAN 10 July 2007 
 
(07-2925) 
Working Party on State Trading Enterprises Original:   English 
   
STATE TRADING 
 
Updating and New and Full Notifications  Pursuant to Article XVII:4(a) 
 
of the GATT andParagraph 1 of the Understanding  
on the Interpretation of Article XVII  
 
CANADA 
   The following communication, dated 19 June 2007,  is being circulated at the request of the 
Delegation of Canada. 
 
_______________ 
 
  Pursuant to the provisions of Article XVII: 4(a) of the GATT 1994 a nd paragraph 1 of the 
Understanding on the Interpretation of Article XV II, Canada submits here with its notification 
concerning state trading enterprises.  This notifi cation covers the Canadian Dairy Commission, the 
Canadian Wheat Board, the Ontario Bean Prod ucers’ Marketing Board, the Freshwater Fish 
Marketing Corporation and the Pr ovincial and Territorial Liquor Control Authorities for the period 
covering 1997/1998 to 2004/2005.   G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 2   
  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 de rived 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 provi de efficient Canadian producers of milk and 
cream with the opportunity of obtaining a fair retu rn for their labour and investment, and to provide 
consumers of dairy products with a continuous and adequate supply of da iry products of high quality.   
 
B. Summary of legal basis for granting the relevant  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 .  The Department of Forei gn Affairs and International 
Trade is responsible for the administration of th e Import Control List (information respecting the 
importation of butter may be obtained at the webs ite of the Department of Foreign Affairs and 
International Trade Canada, http://www.dfait-maeci.gc.ca/eicb/menu-en.asp ).   
  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 by the Export and Import Controls Bureau (EICB) of 
the Department of Foreign Affairs and Internatio nal Trade Canada 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 wh ich 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 Supp ly 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  G/STR/N/5/CAN, G/STR/N/6/CAN,  
 G/STR/N/7/CAN, G/STR/N/8/CAN,   G/STR/N/9/CAN, G/STR/N/10/CAN 
 G/STR/N/11/CAN 
 Page 3 
  
  industrial milk, the assumed processor margin and th e support prices for butter and skim milk powder, 
as well as administering other marketing programmes. 
 
B. Specification of exclusive or special right s 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 EICB of the Department of Foreign Affairs and 
International Trade to the CDC annually with the provi so that these imports be directed to the further 
processing sector.   
 
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and c onditions for participation  
 
 The CDC is not the sole importer of butter, as certain markets, such as the kosher market for 
Passover, 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 importa tion of dairy products may be 
obtained at the website of the Department of  Foreign Affairs and International Trade, 
http://www.dfait-maeci.gc.ca/eicb/menu-en.asp
).   
 
D. How import/export levels are established 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 CD C has acted as the first receiver 
of these imports, under permits issued by the EICB.    
E. How export prices are determined  
 
 The CDC, in any export sale, receives pri ces 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 2003-04, dairy producers operated ap proximately 16,224 farms in Canada.  Virtually 
all of these farms produce milk for two markets: th e 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 indu strial use, and further 
processors who use dairy ingredients and prod ucts as inputs for other finished goods.   G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 4   
   The marketing of fluid milk is regulated at the provincial level by producers through 
provincial milk marketing boards.  Industrial m ilk 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 and government representatives from all provinces (Newfoundland has observer status).  Re presentatives of national producer, processor, and 
consumer organizations participate as non-voting members.  Each year, the 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 processing, 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 producer 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/cr eam, yogurt, powdered buttermilk, dry whey, other 
products of milk constituents, butter, cheese, other da iry preparations and ice cream.  The Department 
of Foreign Affairs and International Trade is  responsible for administering these TRQs.   
 
IV. Statistical Information
 
  See attached Tables I - III.   
 
V. Reason why no foreign trade has taken place ( as appropriate)
 
 
Not applicable.    VI. Additional Information ( as appropriate)
 
 
 Not applicable.   
  
   G/STR/N/5/CAN, G/STR/N/6/CAN, 
 G/STR/N/7/CAN, G/STR/N/8/CAN, 
 G/STR/N/9/CAN, G/STR/N/10/CAN,
 G/STR/N/11/CAN
 Page 5TABLE 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 
 August-July >000 kg >000 kg $Can/kg $Can/kg  >000 kg 
1997-1998 3,250 2,459 2.74 3.78  86,203 
1998-1999 3,634 2,732 2.64 3.55  89,506 
1999-2000 8,776 2,992 2.10 3.37  80,514 
2000-2001 19,303 3,162 2.35 3.51  83,400 
2001-2002 24,973 3,266 2.45 3.46  82,266 
2002-2003 19,289 3,255 2.02 3.16  76,252 
2003-2004 24,447 3,261 2.09 3.52  86,919 Butter and Other Fats and 
Oils Derived from Milk 04.05 
2004-2005 25,433 3,235 2.79 4.36  83,525 
 
Notes : 
 1. Total quantity imported includes supple mentary imports, including products impor ted for further processing and re-export und er the Import for Re-
Export Program.   
2. Comprises the average representative domestic sales price for imported butter.   
 
Sources
:   
 Column 2: Statistics Canada, Canadian Merchandise Trade St atistics, Canadian Agrifood Trade System (CATS).   
Columns 3,4,5: Canadian Dairy Commission.   Column 7: Statistics Canada, Table 003-0009.  Butter includes sa lted, unsalted (sweet, cultured, flavoured), whipped and reduce d–calorie.  Data is for 
creamery butter and does not include whey butter.    
  G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  
G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 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  
  
August-July  
>000 kg  
>000 kg  
$Can/kg  
$Can/kg  
$Can/kg  
>000 kg 
1997-1998 12,795 2,728 1.84 6.56 2.46 86,203 
1998-1999 11,054 696 2.32 6.61 2.56 89,506 
1999-2000 8,124 243 2.20 6.71 2.33 80,514 
2000-2001 11,597 0 0 6.98 … 83,400 
2001-2002 19,426 0 0 7.29 … 82,266 
2002-2003 10,830 0 0 7.66 … 76,252 
2003-2004 16,611 0 0 7.90 … 86,919 Butter and Other Fats and 
Oils Derived from Milk 
04.05 
2004-2005 18,297 858 1.80 8.32 2.37 83,525 
 
Notes :  
 "..." Indicates not applicable.   1. Comprises the average representative domestic sales price for CDC Plan A and Plan B activities.   
 
Sources
:   
 Column 2:  Statistics Canada, Canadian Merchandise Trade Statistics, Canadian Agrifood Trade System (CATS).   
Column 5:  Statistics Canada, Table 326-0012
 - Average retail prices for food and other selected items , monthly (Dollars).  Calc ulations for dairy year 
(August to July) done by Agriculture and Agri-Food Canada (AAFC).   
Columns 3,4,6: Canadian Dairy Commission.   Column 7: Statistics Canada, Table 003-0009. Butter includes salte d, unsalted (sweet, cultured, flavoured), whipped and reduced –calorie.   
 Data is for creamery butter and does not include whey butter.     
   G/STR/N/5/CAN, G/STR/N/6/CAN, 
 G/STR/N/7/CAN, G/STR/N/8/CAN, 
 G/STR/N/9/CAN, G/STR/N/10/CAN,
 G/STR/N/11/CAN
 Page 7TABLE 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 
  
August-July  
>000 kg  
>000 kg  
>000 kg  
>000 kg 
1997-1998 14,468 86,203 18,546 85,640 
1998-1999 16,748 89,506 14,242 79,092 
1999-2000 14,966 80,514 15,511 87,792 
2000-2001 17,552 83,400 14,839 85,086 
2001-2002 19,821 82,266 19,916 86,701 
2002-2003 13,971 76,252 18,469 92,107 Butter and Other Fats 
and Oils Derived from 
Milk 04.05 
2003-2004 21,366 86,919 16,428 92,880 
 2004-2005 23,131 83,525 22,232 100,624 
 
Notes : 
 1. Domestic purchases by state trading enterprise are comprised of CDC Plan A and Plan B purchases.   
2. National consumption is repr esented by domestic disappearance calculated as the su m of net stocks, production and imports, l ess exports.  Domestic 
disappearance is a calculated residual, which indicates the amount of a commodity that is available for all uses in Canada.  It  does not represent total 
supplies of a commodity actually consumed by individuals.   
 Sources
: 
 
Columns 2, 4: Canadian Dairy Commission.   
Columns 3, 5: Statistics Canada, Table 003-0007 - Supply and dispos ition of milk products in Canada , monthly.  Data are for cre amery butter.   
 
 G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 8   
  I. Enumeration of State Trading Enterprises
 
 
A. Identification of state trading enterprises  
 
 Canadian Wheat Board (CWB).   
 
B. Description of products affected (including tariff item number(s) encompassed in product 
description)  
 
1001.00 Wheat.   1003.00 Barley.   
 II. Reason and Purpose
 
 
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
 
 The statutory objective of the CWB is the marke ting in an orderly manner, in inter-provincial 
and export trade, of grain grown in Canada.   
 
B. Summary of legal basis for granting the relevant exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
 
The CWB was established under the Canadian Wheat Board Act .  Pursuant to that Act, the 
CWB's powers include the authority to buy, take delivery of, store, transfer, sell, ship or otherwise 
dispose of grain.  Only wheat and barley prod uced in the CWB "designated area", which includes 
Manitoba, Saskatchewan, Alberta and the Peace River area of British Columbia, are marketed by the 
CWB.    
III. Description of the Functioning of the State Trading Enterprise
 
 
A. Summary statement providing overview of op erations of the state trading enterprise  
 
The CWB markets, on behalf of producers, wheat and barley grown in the designated area of 
western Canada for domestic human consumption a nd for export.  The CWB also coordinates the 
delivery of wheat and barley into grain elevators and railway cars for inter-provincial movement and 
shipment to export position.     The CWB pools the returns from sales of wheat  and barley over the crop year.  The pooled 
price for individual grades of wheat and barley is a weighted average price that reflects the prices 
received from buyers over the course of the crop year less selling costs.  Since 2000, the CWB has 
introduced several payment option programs, incl uding fixed price contract and basis payment 
contract programs, which provide farmers w ith an alternative to price pooling.   
 
The CWB may also sell feed barley and feed wh eat into the domestic feed grain market.  The 
CWB sources this grain just as it would any other CWB grain, i.e., by producer delivery contracts.  
However, its domestic sales of feed grains, which are small, compete directly with private grain 
companies, which source their own grain and sell to domestic feed grain users.    G/STR/N/5/CAN, G/STR/N/6/CAN,  
 G/STR/N/7/CAN, G/STR/N/8/CAN,   G/STR/N/9/CAN, G/STR/N/10/CAN, 
 G/STR/N/11/CAN 
 Page 9 
  
  B. Specification of exclusive or special rights or privileges enjoyed by the state trading 
enterprise  
 
The CWB is solely responsible for the sale of wheat and barley grown in the designated area 
to export markets as well as for human consumptio n in the domestic market.  In addition, the CWB 
has legal authority to control the inter-provincial and export movement of wheat and barley and their 
products produced anywhere in Canada.   
 
C. Type of entities other than the state trading enterprise that are allowed to engage in 
exportation and conditions for participation 
 
Accredited exporters
 
 
Export sales of western Canadian wheat and barley can involve the CWB only, or both the 
CWB and its accredited exporters (AEs).  AEs are na tional and multinational companies authorized to 
purchase grain from the CWB for resale to customers and other exporters.  Lists of the CWB’s AEs 
by region in which they conduct busine ss can be found on the CWB’s website at: www.cwb.ca .   
 
Whether a sale is completed directly by the CWB or through an AE depends primarily upon 
the customer.  Often in a number of cases, negotia tions to establish grade, quantities, prices, shipping 
periods and other terms and conditions are carried out directly between the CWB and the importer.  
The CWB negotiates these sales either free on board (FOB) or cost and freight (C&F).    
For a significant number/proportion of sales, the CWB negotiates the basic parameters of the 
contract with the end buyer and then a contract is completed with an AE, and the AE in turn with the 
end buyer.  The sale and shipment ar e then executed through the AE.   
 
 AEs also buy from the CWB for specific destinati ons and then re-sell the grain on their own.  
Here, the AE conducts all negotiations, buys th e grain from the CWB on a cash basis, and assumes 
responsibility for its foreign exchange, document ation, and ocean freight, if required.   
 
The CWB is in daily contact with AEs.  Two-way communication with AEs keeps the CWB 
abreast of price indications and market developmen ts, and keeps the export trade aware of CWB price 
levels by market and shipping period.  In this respect, the CWB behaves just as any private grain 
company does, offering quotes and trading grain to in terested parties, and is fully integrated as a 
commercial participant.  As a result of this pro cess, the private trade has comprehensive knowledge of 
what CWB grain is available at any time for any delivery period.    
Farmers – Producer Direct Sale 
 
 Farmers themselves can also export wheat and barley by using the CWB’s producer direct 
sale (PDS) program.  By using this program, the farm er essentially takes on a role similar to that of an 
AE by purchasing grain from the CWB.    
Exports of eastern Canadian wheat 
  Exports of eastern Canadian wheat must be done under export licenses obtained from the 
CWB.  In practice, these are freely granted.   G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 10   
  D. 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, availability, 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 will defer sales 
until the next crop year.   
 
E. How export prices are determined  
 
 The CWB determines export prices in line with prevailing market conditions, in order to maximize revenues from sales.  Commercial considera tions taken into account in this respect include 
relevant U.S. 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 will in many cases derive 
its prices from those established on the Minneapolis  Grain Exchange, Chicago Board of Trade, and 
Kansas City Board of Trade.  Where the relevant co mpetition is a wheat from an origin other than the 
US, the prices of those wheats 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 va rious sources regarding values at which the 
competition is offering and/or trading.  This w hole process is essentially the same as the process 
followed by international traders.    
F. How the resale prices of imported products are determined  
 
 Imports of wheat and wheat pr oducts, and barley and barley products, are conducted by the 
private trade at prevailing market prices.  The CW B has no authority over the importation of wheat or 
barley, nor does it import either product. 
 
G. Whether long-term contracts are negotiated by th e state trading enterprise.  Whether the state 
trading enterprise is used to fulfil contractual obligations entered into by the government 
 
The CWB does not enter into long-term contract s 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 is run by a farmer-controlled board of  directors and markets grain on a commercial 
basis.  The CWB is not used to fulfil contractual obligations entered into by government.    
H. Brief description of market structure  
 
Approximately 69,000 farmers (based on the number of CWB delivery permits issued in 
2004-05) in Alberta, Saskatchewan, Manitoba and th e Peace River area of British Columbia produce 
most of Canada’s wheat and barley, which are grown for both the domestic and export markets.  
Domestically, Canadian cereal grains are used ma inly in processing (e.g. flour milling, 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.   
  The CWB does not own elevator facilities.  Gr ain handling facilities in Western Canada are 
owned and operated by private entities.  The primary elevator system in Western Canada has undergone massive consolidation during the past sever al years: As of August 1, 2006, there were 337  G/STR/N/5/CAN, G/STR/N/6/CAN,  
 G/STR/N/7/CAN, G/STR/N/8/CAN,   G/STR/N/9/CAN, G/STR/N/10/CAN, 
 G/STR/N/11/CAN 
 Page 11 
  
  primary elevators that were licensed by the Canadian Grain Commission in Western Canada.  This 
compares to 1,058 in existence at August 1, 1998, and 1,578 at August 1, 1990.   
 
For western Canadian wheat and barley destin ed for domestic livestock feed markets, grain 
companies buy and sell in the marketplace.  For w estern Canadian wheat and barley marketed for 
domestic human consumption or export, grain comp anies act as handling agen ts for the CWB.  The 
CWB directs the movement of wheat and barley through delivery contracts, and allocates shipping 
orders for rail cars to companies handling CWB grai ns.  The CWB can either deal directly with the 
buyer or through an AE.  The CWB deals with approximately 20 AEs who purchase grains from the CWB for resale to customers.     The CWB does not control imports of wheat and barley and their products.  Tariff rate quotas 
for wheat, barley and their products are administer ed by the Department of Foreign Affairs and 
International Trade, under the authority of the Export and Import Permits Ac t.  Further information is 
available at the Department of Foreign Affairs a nd International Trade’s Export and Import Controls 
Bureau web site, located at: http://www.dfait-maeci.gc.ca/eicb/menu-en.asp
. 
 
IV. Statistical Information  
 
See attached Tables I – III.   
 
V. Reason why no foreign trade has taken place ( as appropriate)  
 
Not applicable.   
 
VI. Additional Information ( as appropriate)  
 
Governance  
 
Amendments to the CWB Act  in 1998 established a new governance structure for the CWB.  
The passage of An Act to Amend the Canadian Wheat Board Act  on June 11, 1998 continued the 
CWB as a shared governance corporation, without sh are capital.  As a result of the amendments, 
effective December 31, 1998 the CWB ceased to be an  agent of Her Majesty and a Crown corporation 
within the meaning of the Financial Administration Act .  Ten directors are directly elected by farmers, 
and our other directors are appointed by the Go vernment of Canada.  The president and chief 
executive officer, who also sits on the board of direct ors, is appointed by the Government of Canada 
after consultation with the board of directors.  The board of directors is responsible for directing and 
overseeing the business and affairs of the CWB.    Pooling and Producer Payment Options
 
 
 At any given time during the crop year, producer s participating in the pool will receive the 
same initial payment for the same grade of grain de livered 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 receive an initial payment when 
they deliver grain to a primary elevator.  The level of this initial payment is set by the Government of 
Canada based on its review of CWB recommendati ons and varies from year to year according to 
market conditions.  The initial payment represents a por tion, paid at time of delivery, of the total 
return the pool is projected to achieve over the ma rketing period.  The initial payments are actually a 
schedule of payments specific to each class and grad e of grain.  At the end of a crop year, the net 
value of grain in each pool account is determined afte r all grain has been sold and all costs involved in G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 12   
  marketing have been deducted.  Th ese costs include interest, insuran ce, storage, terminal elevators' 
handling charges and the CWB's own operating costs.  All funds remaining in  the pool after deduction 
of these costs are returned to producers in the form of a final payment.  This payment is made in 
accordance with the number of tonnes and grade of  grain each producer delivered during the crop 
year.    
Pool Return Outlooks (PROs) provide western Canadian producers with a forecast of what 
they can expect to receive as a final pooled pr ice by grade from CWB sales over the crop year for 
various CWB grains.  The PRO projections are not price guarantees.  They simply provide producers 
with an approximation of expected returns, enablin g them to more clearly define their financial 
situations and make planting and marketing decisi ons.  The monthly projection of the PRO involves 
an intense price projection exercise and is based  on completed and anticipated CWB sales.  The PRO 
for a given crop year (1 August - 31 July) begins in the February prior to the beginning of the crop 
year and is adjusted each month to reflect chang es in market conditions.  As the crop year progresses, 
completed sales are entered into the calculation, thus reducing the forecasting element.  The PRO 
process continues throughout the crop year and as more  completed sales are entered into the system, 
the estimates become more certain.    
 Amendments to the CWB Act  in 1998 also enabled the CWB to establish alternative payment 
options to the traditional pool payment system. Sin ce 2000, programs have been established such that 
producers who market grain through the CWB now ha ve two general ways of receiving payment for 
their grain:  They can participate in the pooling system and receive the pooled return, or they can 
choose from a number of payment options such as fi xed price and basis payment contracts, through 
which the farmer chooses to price outside the pool.  Producer payment options such as the fixed price 
contract and basis payment contract provide farmers w ith the ability to lock in a fixed price or basis 
for their grain.   
 
 Further information about the CWB and its oper ations, including copies of its annual reports 
and audited financial statements, are available at www.cwb.ca
.   
 
  
   G/STR/N/5/CAN, G/STR/N/6/CAN, 
 G/STR/N/7/CAN, G/STR/N/8/CAN, 
 G/STR/N/9/CAN, G/STR/N/10/CAN,
 G/STR/N/11/CAN
 Page 13TABLE 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  
$Can/tonne  
$Can/tonne  
  
tonnes 
 
Wheat 
10.01 1997-1998 
1998-1999 1999-2000 
2000-2001 
2001-2002 
2002-2003 
2003-2004 2004-2005 52,000
80,00014,000
60,000
97,000
178,000
18,00014,000 
- 
-  
-  
- 
- 
- - 
-  
... 
…  
...  
... 
… 
… … 
… 221.99 
206.65 191.67 
199.20 
212.50 
255.92 
223.93 205.56  
... 
…  
... 
… 
… 
… … 
… 24,280,000
24,082,000 
26,941,000 
26,536,000
20,568,000
16,198,00023,552,000
25,860.000
 
Barley 
10.03 1997-1998 
1998-1999  
1999-2000  
2000-2001 
2001-2002 
2002-2003 2003-2004 
2004-2005 35,000
55,000
33,000 
40,000
112,000
259,000
35,000
83,000- 
- 
-  
-  
- 
- - 
- 
-  
... 
…  
...  
... 
… … 
… 
… 197.34 
181.86 
195.60 
208.44 218.40 
248.23 
221.95 198.73  
... 
…  
...  
... 
… … 
… 
… 13,527,000
12,709,000
13,196,000 
13,229,000
10,846,000
7,489,000
12,328,000
13,186,000
 
1. The CWB has no authority over the importation of wheat or barley and no jurisdiction to import either product.   
Notes : "-" indicates zero.   
"..." indicates not applicable.   
"tonnes" are expressed as grain equivalent.   
Sources :  Columns 2, 7:  Statistics Canada, "Cereals and Oilseed s Review", various issues, Catalogue No. 22-007-XIB.   
Column 5:  Canadian Wheat Board.    
  G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  
G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 14 TABLE II  
 
STATE TRADING:  CANADIAN WHEAT BOARD 
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   
$Can/tonne  
$Can/tonne  
$Can/tonne  
tonnes 
 
Wheat 
10.01 1997-1998 
1998-1999 1999-2000 
2000-2001 
2001-2002 
2002-2003 
2003-2004 2004-2005 19,995,000 
14,723,000 18,313,000 
17,108,000 
16,214,000 
  9,191,000 
15,727,000 14,812,000 16,894,813 
13,916,925 18,163,865 
15,717,706 
13,811,066 
8,366,548 
14,074,446 13,857,121196.31 
183.85 171.18 
183.51 
202.99 
227.00 
189.84 160.32 221.99 
206.65 191.67 
199.20 
212.50 
255.92 
223.93 205.56 235.40 
218.40 199.28 
216.20 
241.72 
274.20 
235.24 211.53 24,280,000 
24,082,000 26,941,000 
26,536,000 
20,568,000 
16,198,000 
23,552,000 25,860,000
 
Barley2 
10.03 1997-1998 
1998-1999 
1999-2000 
2000-2001  
2001-2002 2002-2003 
2003-2004 
2004-2005 2,779,000 
1,698,000 
2,392,000 
2,641,000 
1,770,000    945,000 
2,456,000 
1,863,000 2,622,621 
1,038,185 
1,612,524 
1,851,913 
946,271 221,884 
1,826,226 
1,277,762166.73 
145.89 
160.35 
170.72 
191.35 196.63 
167.64 
141.35 197.34 
181.86 
195.60 
208.44 
218.40 248.23 
221.95 
198.73 193.79 
176.26 
180.47 
189.32 
220.34 229.27 
198.64 
177.79 13,527,000 
12,709,000 
13,196,000 
13,229,000 
10,846,000 
7,489,000 
12,328,000 
13,186,000
 
 
Notes : "tonnes" are expressed as grain equivalent.   
1. Total quantity exported is based on the Statistics Canada repo rting period (cleared by Customs) and includes exports from al l of Canada including regions outside the 
CWB designated area as well as product exports by domestic processors.   
2. The average domestic sales price for barley  exceeds the average export price in many years due to the higher percentage of high er-value malting barley compared to feed 
barley being sold domestically.   
 Sources
:  Columns 2, 7:  Statistics Canada, "Cereals and Oilseeds Review", various issues, Catalogue No. 22-007-XIB.   
Columns 3-6:  Canadian Wheat Board.    
   G/STR/N/5/CAN, G/STR/N/6/CAN, 
 G/STR/N/7/CAN, G/STR/N/8/CAN, 
 G/STR/N/9/CAN, G/STR/N/10/CAN,
 G/STR/N/11/CAN
 Page 15TABLE III  
 
STATE TRADING:  CANADIAN WHEAT BOARD 
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 
10.01 1997-1998 
1998-1999 1999-2000 
2000-2001 
2001-2002 2002-2003 
2003-2004 
2004-2005 19,138,990 
17,417,365 20,402,570 
17,625,982 
16,577,021 12,499,817 
15,455,652 
17,120,262 24,280,000 
24,082,000 26,941,000 
26,536,000 
20,568,000 16,198,000 
23,552,000 
25,860,000 2,095,429 
2,853,172 2,604,768 
2,760,548 
2,442,569 2,783,379 
2,586,268 
2,712,991 7,373,000 
8,023,000 8,368,000 
7,521,000 
7,388,000 8,008,000 
7,488,000 
9,221,000 
 
Barley 
10.03 1997-1998 
1998-1999 
1999-2000 2000-2001 
2001-2002 
2002-2003 2003-2004 
2004-2005 2,529,383 
2,198,767 
3,226,280 2,727,561 
2,259,431 
   931,131 2,982,389 
2,250,150 13,527,000 
12,709,000 
13,196,000 13,229,000 
10,846,000 
7,489,000 
12,328,000 
13,186,000   410,619 
1,120,404 
1,375,376 1,183,407 
1,117,707 
   824,566 1,006,063 
913,712 11,243,000 
10,788,000 
10,736,000 10,949,000 
9,656,000 
7,226,000 9,280,000 
10,073,000 
 
Notes : "tonnes" are expressed as  grain equivalent.   
1.  Prior to 1998-99, grain sales to domestic processors for fu rther processing and export were accounted for as export sales.  Beginning in 1998-99, these sales are classified as dom estic sales.   
2. National consumption accounts for grain (incl uding imports) used for human consumption, animal feed, seed requirement, industri al use, waste and dockage, and losses in handling.   
 
Sources :  Column 2:  Canadian Wheat Board Annual Report, Statements of  Pool Operations, Wheat = wheat pool receipts plus durum pool re ceipts.  Barley = barley pool receipts plus designated 
barley pool receipts. 
Column 4:  Canadian Wheat Board. 
Columns 3, 5:  Statistics Canada, "Cereals and Oils eeds Review", various issues, Catalogue No. 22-007-XIB.  G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 16   
  State Trading Notification 
 
Explanation of why Ontario Bean Producers’ Marke ting Board (OBPMB), is no longer notified as an 
STE: 
  The Ontario Bean Producers’ Marketing Bo ard (OBPMB), notified in Canada’s prior 
notification (G/STR/N/4/CAN) is no longer an STE due  to a policy change implemented by its board 
of directors.  As indicated in Canada’s prior no tification, up until 1997/98, all of the white pea beans 
grown in Ontario had to be marketed thr ough the OBPMB.  Beginning in 1998/99, however, 
producers had the option of marketing up to 0.56t/ha outside of the OBPMB’s pool system.  The OBPMB subsequently approved a further policy change, beginning in the 2001-02 crop year, such 
that producers have the right to sell to the OBPMB or directly to private licensed buyers, without any 
restrictions.  As a result, the OBPMB no longer op erates as the exclusive ma rketer of white beans 
produced in the province of Ontario.    G/STR/N/5/CAN, G/STR/N/6/CAN,  
 G/STR/N/7/CAN, G/STR/N/8/CAN,   G/STR/N/9/CAN, G/STR/N/10/CAN, 
 G/STR/N/11/CAN 
 Page 17 
  
  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 Co rporation (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 Albe rta, Saskatchewan, Manitoba, Ontario, and the 
Northwest Territories, the FFMC has the exclusive ri ght in the inter-provincial and export trade to 
market and trade in fish and fish products from th e freshwater commercial fish eries of those provinces 
and territories.  The agreement with Ontario c overs only production from an area of north-western 
Ontario bordering the province of Manitoba.  This no tification 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 thei r catch of certain under-utilized species through 
alternative channels if they so desire.  The FFM C 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 fre shwater fish and fish products sourced in 
agreement areas in an orderly manner;  to increase retu rns to fishermen;  and to promote international 
markets for, and increase inter-provincial and export tr ade 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 annual in come 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 ma rketing 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 impor t or export and, if so, on what conditions.  
Whether there is free competition betw een private traders and the enterprise. 
 
 The FFMC has the exclusive right to market fi sh from 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 sourced  from areas of Canada outside the agreement areas, 
the FFMC does not control or govern private trader s’ activities – including their exports and domestic 
sales.  In all parts of the domestic market, private traders are free to market freshwater fish sources 
from Canadian "non-agreement 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.  G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 18   
   How export prices are determined.  How the markup on imported products is determined.  
How export prices and resale prices of im ports 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 th e enterprise.  Whether the enterprise is used 
to fulfil contractual obligations en tered into by the Government.   
 
 Not applicable.  
IV. Statistical information
 
 
 See attached Tables I – III.    
V. Reason why no foreign trade has taken pla ce (if this is the case) in products affected
 
 
 The Freshwater Fish Marketing Corporation is  not involved in the importation of freshwater 
fish.  Data specific to freshwater fish is not ava ilable for imports.  Total imports of fish from HS 
Codes 0302, 0303, 0304, and 0305 which include bot h fresh and saltwater fish products, totalled 
161,176,614 kg in 2004/05.    
VI.  Additional information
 
 
 Not applicable.   
   G/STR/N/5/CAN, G/STR/N/6/CAN, 
 G/STR/N/7/CAN, G/STR/N/8/CAN, 
 G/STR/N/9/CAN, G/STR/N/10/CAN
 G/STR/N/11/CAN
 Page 19 
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  
Refer to V. above. 
  
  G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  
G/STR/N/9/CAN, G/STR/N/10/CAN 
G/STR/N/11/CAN 
Page 20 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 
May-April (000’s lbs)  
(000’s lbs)  
C$ per pound C$ per pound  
C$ per pound  
- 
1997-1998 52,220 18,694 .89 1.39 2.07 - 
1998-1999 61,334 19,926 .99 1.86 2.26 - 
1999-2000 64,555 20,140 1.04 2.32 2.31 - 
2000-2001 56,506 21,170 1.07 2.43 2.42 - 
2001-2002 55,889 21,494 1.06 2.16 2.65 - 
2002-2003 50,117 20,734 1.05 2.19 2.63 - 
2003-2004 46,506 20,021 1.10 2.09 2.40 -  Freshwater Fish  
Within HS Codes 0302, 
0303, 0304 and 0305 
2004-2005 43,061 18,122 1.10 2.23 2.60 - 
 
Notes : 
1. Total Quantity Exported is the total expo rts for the HS codes that include the produc ts marketed by the FFMC.  Saltwater fis h 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 paymen t (net income each year) distributed to fishers.   
3. Statistics on national production of fresh water 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/5/CAN, G/STR/N/6/CAN, 
 G/STR/N/7/CAN, G/STR/N/8/CAN, 
 G/STR/N/9/CAN, G/STR/N/10/CAN
 G/STR/N/11/CAN
 Page 21TABLE 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  
May-April (000’s lbs)  (000’s lbs)  
  
1997-1998 26,681 - 5,107 - 
1998-1999 31,729 - 4,485 - 
1999-2000 36,567 - 4,694 - 
2000-2001 38,187 - 5,566 - 
2001-2002 40,136 - 6,680 - 
2002-2003 41,764 - 6,039 - 
2003-2004 35,760 - 6,613 - Freshwater Fish  
Within HS Codes 0302, 0303, 0304 and 0305 
2004-2005 30,939 - 5,888 - 
 
Sources : 
 
 Column 2:  Deliveries report to Transcona processing plant.   
 Column 4:  FFMC Sales Analysis Report.    1. Statistics on national production of fresh water fish products are not collected.   
2. Statistics on national consumption of fresh water fish products are not collected.   
 
 G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 22   
  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 gr apes flavoured with plants or aromatic 
substances.   
2206.00 Other fermented beverages (for exampl e, 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 per cent 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-provincia l/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 al coholic beverages in Canada for the purpose of 
protecting public health and morals.   
 
B. Summary of legal basis for gaining the relevant  exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
 
The IILA provides the provinces and territories, with in their respective jurisdiction, with 
control over the sale of intoxicating liquor, and ove r the importation, sending, taking or transportation 
of such liquor into the provinces and territories.  The provinces and territori es 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.    G/STR/N/5/CAN, G/STR/N/6/CAN,  
 G/STR/N/7/CAN, G/STR/N/8/CAN,   G/STR/N/9/CAN, G/STR/N/10/CAN, 
 G/STR/N/11/CAN 
 Page 23 
  
  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.   
 
B. Specification of exclusive or special right s 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 c onditions 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 w ith 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 thr ough 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 rela ted 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 frei ght), 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 
                                                      
1 Canada - Import, Distribution and Sale of Alcoholic 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.   G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 24   
  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 2004/05 the value of all alcoholic beverages pr oduced in Canada stood at just under $6 billion 
compared to $4.7 billion in 1998.
3  Alcoholic beverage imports of all kinds amounted to $2.1 billion 
in 2004/054 while total exports stood at $780 million the same year.5   
 
The brewing industry6 comprises those establishments primarily engaged in the steeping, 
boiling and fermenting of malt and hops to manufact ure malt beverages.  The industry produces a 
variety of beer, lager, ale, porter and stout, in bo ttles, cans and draught for the consumer market and 
for the food service industry.  The Canadian beer i ndustry 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 94 brewing plan ts located across the c ountry.  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 pr oduction are controlled at the provincial level mean 
that the products of microbreweries are usually av ailable only in the regions where they are produced.  
Canadians drink more beer than any other alcoho lic beverage, where beer accounts for 80% of the 
total amount of alcohol consumed.7  Domestic per capita consumpti on of beer in Canada declined 
slightly from 83.4 litres per person in 20 01 to 80.3 litres per person in 2004/05.8  Western Canada also 
produces approximately 1.4 million tonnes of malting ba rley for export (annual average) which is in 
demand by leading foreign breweries that recognize the high quality of this product.9 
 
The Canadian wine industry10 continues to grow, as the total value of its domestic production 
has surpassed the distilleries industry to become th e second largest domestic producer of alcoholic 
beverages.  The industry has evolved in response to rapid changes stemming from adjustments to 
                                                                                                                                                                     
Canada - Import, Distribution and Sale of Certain Alcoholic Drinks by Provincial Marketing Agencies  
(1992).  The US-Canada Memorandum of Understanding on  Provincial Beer Marketin g 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, Canadian Socio-Economic Information Management System (CANSIM), 
Manufacturing Shipments.   
4 Global Trade Atlas:  Canada Imports and Export Statistics 1998-2005.   
5 Statistics Canada, "Control and Sale of Alcoholic Beverages in Canada" [Available online] Statistics 
Canada, September, 2006:  Available: http://www.statcan.ca/bsolc/english/bsolc?catno=63-202-
X&CHROPG=1.   
6 Canada’s brewing industry is defined by the North American Industrial Classification System 
(31212).   
7 Statistics Canada, "Food Consumption Highlights" [Available online] Statistics Canada October, 
2006:  Available:  http://www.statcan.ca/english/ads/23F0001XCB/highlight.htm.   
8 Statistics Canada, "Food Statistics: 2005" [Available online] Statistics Canada October, 2006:  
Available:  http://www.statcan.ca/english/freep ub/21-020-XIE/21- 020-XIE2005002.pdf . 
9 Western Grains Research Foundation, 2005, www.westerngrains .com.   
10 Canada's wine industry is defined by the North American Industrial Classification System (31213).    G/STR/N/5/CAN, G/STR/N/6/CAN,  
 G/STR/N/7/CAN, G/STR/N/8/CAN,   G/STR/N/9/CAN, G/STR/N/10/CAN, 
 G/STR/N/11/CAN 
 Page 25 
  
  trade liberalization under the Canada-United St ates FTA and GATT 1947.  Domestic vintners now 
grow quality Vitis Vinifera and h ybrid grapes which have resulted in  a dramatic improvement in the 
quality of Canadian wine.  Canadian Icewine, a sw eet desert wine, has won several prestigious awards 
at international competitions and has gained consid erable international recognition.  Among the larger 
firms there is a significant amount of production wh ich involves bottling and blending of domestic 
and imported wines.  However, most of these larger corporations have also acquired smaller estate wineries which have retained their own identity an d which help them to de fine their "signature" 
premium products.  In addition, there are many sm all family-oriented businesses which concentrate on 
the production of wine from Canadian grown grapes.  Domestic per capita consumption of wine in 
Canada has increased from 12.8 litres per person in 2001 to 13.9 litres per person in 2004/05.
11   
 
The distillery industry12 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 distinc tive 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 high ly concentrated.  Most co mpanies are subsidiaries of 
multinational corporations with production faciliti es maintained in Canada in order to produce 
Canadian whisky, which has a registered geographi cal indication in Canada.  Domestic per capita 
consumption for spirits has remained relatively c onstant with only a slight increase from 7 litres per 
person in 2001 to 7.5 litres per person in 2004/05.
13   
 
IV. Statistical Information  
 
The relevant statistical information is attached. See Tables I - III 
 
V. 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.   
 
VI. Additional information  
                                                      
11 Statistics Canada, "Food Statistics: 2005" [Available online] Statistics Canada October, 2006:  
Available:  http://www.statcan.ca/english/ freepub/21-020-XIE/21-020-XIE2005002.pdf.   
12 Canada's distillery industry is defined by the No rth American Industrial  Classification System 
(31214).   
13 Statistics Canada, "Food Statistics: 2005" [Available online] Statistics Canada October, 2006:  
Available:  http://www.statcan.ca/english/freep ub/21-020-XIE/21- 020-XIE2005002.pdf .   G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 26   
  ALBERTA 
 
The liquor authority in Alberta, namely the Alberta Gaming and Liquor Commission, does not make 
commercial decisions on the product selections for al coholic beverages which are imported, nor on 
the quantities of those imports.  However, it is including 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.   
 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 co llects 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 stru cture 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 arra ngements.  Final approval for su ch arrangements is required from 
the AGLC.   
 Under the Alberta system, imported and domestic products are given the same treatment.   
  
BRITISH COLUMBIA 
 ACTS AND REGULATIONS  
- Liquor Distribution Act , R.S.B.C. 1996, c.238 and the regulations thereto, and their 
amendments.    G/STR/N/5/CAN, G/STR/N/6/CAN,  
 G/STR/N/7/CAN, G/STR/N/8/CAN,   G/STR/N/9/CAN, G/STR/N/10/CAN, 
 G/STR/N/11/CAN 
 Page 27 
  
  SUMMARY OF LIQUOR MARKETING PRACTICES 
 
The Liquor Distribution Branch (LDB) is the importe r of record for all alc oholic 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 Columb ia, liquor for resale and reuse in British Columbia 
in accordance with the provisions of the Importation of Intoxicating Liquors Act (Canada)".   
 
As of March 31, 2005 the LDB operated 212 governme nt liquor stores.  As of March 31, 2005 there 
was also a large private retail system consisting of 534 private liquor stores, 231 rural agency stores, 
37 wine stores, and 116 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-
run 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 b ased 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 supp lier price to determine the retail price.   
 
 
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 C onsequential 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 and gross profit 
quotas.  The criteria and quotas apply to all bevera ge 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 45 government-owned 
stores, 174 privately-owned agency stores, 8 specialty wine stores, 4 duty-free stores, and 1,500 licensed premises.  In addition, 3 privatel y-owned beer distributors warehouse and service the 
45 government-owned stores, 293 privately-owned beer stores, duty-free stores and 1,500 licensed 
premises.  Gross profit quotas do not apply to privately distributed beer.   
 Beverage alcohol's retail price is determin ed by applying combination of a category ad valorem mark-
up and a category flat rate per litre to the landed co st.  Minimum mark-ups apply to all products but 
there are no minimum prices.  The same category and minimum mark-ups are applicable to like 
products regardless of country of origin for products warehoused by the MLCC.   G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 28   
  Audited cost of service differentials (commercial cons iderations) 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 Br unswick 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 sy stem, including agents and licensed establishments.  
Marketing programs are available to all suppliers on an equal access basis.   
 The ANBL maintains a retail system of 51 stores and 71 agency outlets.  This system is the exclusive 
retailer of all alcoholic beverages in the province.   In addition, approximately 1,200 establishments 
are licensed for on-premise consumption.  These  licensees buy exclusively through the ANBL retail 
system described above.   
 Suppliers have the option of establishing their ow n in-province warehouse and distribution or going 
through ANBL’s central warehouse and distribution syst em.  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 uni formly to all products 
regardless of origin.  Minimum and maximum ma rk-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 
 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 amendmen ts to the above legislation over the 1997-2004 
time period.  However, the official name of  the liquor corporation was changed in 2001 to 
Newfoundland and Labrador Liquor Corporation.    G/STR/N/5/CAN, G/STR/N/6/CAN,  
 G/STR/N/7/CAN, G/STR/N/8/CAN,   G/STR/N/9/CAN, G/STR/N/10/CAN, 
 G/STR/N/11/CAN 
 Page 29 
  
  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 Liquor Corpor ation (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 sp irits and wines are required to operate through the 
NLC warehouse and related distribution systems.   Between 1997-98 and 2004-05 the mark-up 
structure was established within product categories and was the same regardless of product origin.   
The mark-up structure for spirits, liqueurs and win es is applied to landed co st and consists of a 
combination of a flat fee and a percentage of lande d cost.  Provincial and fe deral taxes including the 
Harmonized Sales Tax and a recycling container deposit ar e also added to determine final retail price.   
 
The following details the number of Agency Stores and Corporate Stores from Fiscal 1997-98 
to 2004-05:    
Year
   Corporate   Agency  
 
 1997-98  23    76 
 1998-99  23    81 
 1999-00  23    86  2000-01  24    87  2001-02  24    91  2002-03  26    98 
 2003-04  26   106 
 2004-05  26   112 
 
• Note:   Corporate includes retail outlets which ser ve 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 Sc otia Liquor Corporation (NSLC).  In 2001, the 
NSLC was transformed from a Commission into a provincial Crown Corpor ation and renamed the 
Nova Scotia Liquor Corporation.  The NSLC’s listing policies provide equal access to all products 
regardless of origin.  Suppliers, of both domes tic and imported products, are required to operate 
through the NSLC central warehouse and related distri bution system.  All beer suppliers, regardless of 
origin, with sales of one million equivalent dozen  are permitted to operate a separate warehouse 
facility.  All products, regardless of origin, may be sold in the 108 liquor stores (in 2004/05) operated 
by the NSLC.  There are also 8 small businesses se rving as NSLC agency stores, 4 private wine and 
specialty stores, 7 manufacturer’s on-site outlets (b reweries or distilleries), and 6 farm-gate stores 
permitted to sell their own wine directly to consumers.    G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 30   
  Mark-ups are established by package size within product categories and are the same regardless of 
product origin.  All products which go through the warehouse are charged the same cost-of-service.   
 
 
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 License 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 sy stem 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 ag encies, are the primary bodies responsible for 
controlling the movement and sale of beverage alc ohol within the province, respectively through the 
Liquor Control Act, and the Alcohol and Gaming Regulation and Public Protection Act (AGRPPA).  
The Liquor License Act sets the conditions under which a person ma y keep for sale, offer for sale, or 
sell liquor under a license 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.   
 Under the Ontario  Liquor Control Act  (and its regulations), the LCBO  distributes and sells domestic 
and imported spirits, wine and beer.  The LCBO is responsible for importing all liquor into Ontario, 
and for the pricing, quality assurance, distribution a nd sale of all liquor in the province.  The agency 
also tests products for quality control and safety, fi xes beverage alcohol prices,  and controls beverage 
alcohol warehousing.   
 Costs of warehousing, distribution and retaili ng are recouped from LCBO mark-ups, which are 
calculated according to a set formula.   
 The LCBO establishes "government stores" for the sale of liquor across Ontario.  These include the 
LCBO’s own retail stores and its agency stores in smaller communities.  The LCBO is the major retail 
channel for spirits.    
The LCBO is the primary outlet for imported wine (i ncluding out-of-province wine) but it is also sold 
via licensed agents for private and consignment sales.    
In 1994, on-site manufacturers' stores were allo wed, and are authorized under AGRPPA.  This act 
also controls or regulates these stores’ hour s and operating conditions, and authorizes a limited 
network of private winery-owned off-site stores ac ross the province selling exclusively the winery’s 
domestic products.  The number of the off-site stor es 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 Al coholic Beverages (as modified by the Canada-
EC Agreement on Trade in Wines and Spirit Drinks).    G/STR/N/5/CAN, G/STR/N/6/CAN,  
 G/STR/N/7/CAN, G/STR/N/8/CAN,   G/STR/N/9/CAN, G/STR/N/10/CAN, 
 G/STR/N/11/CAN 
 Page 31 
  
  Brewers Retail Inc. (BRI) is a privately owned co mpany operating under the authority of AGRPPA. It 
operates stores which sell imported and domestic beer to the public.  The primary distribution channel 
for beer is BRI, through its outlets named The Be er Store.  The LCBO is a secondary channel for 
beer, particularly for imported and craft products .  BRI has an open listings policy (will sell any 
brand) and no delisting policy or volume minimums , but it restricts lower volume brands to one 
package size.    
All imported beverage alcohol pro ducts which are sold in Ontario must first be received by the 
LCBO.  Ontario has maintained physical import r eceivership to ensure quality  control and adequate 
monitoring for revenue collection purposes.   
 
The LCBO purchases imported products at wholesale and arranges and pays for freight costs to Ontario.  The LCBO controls the warehousing of liquor in the province, and warehouses all imported 
beer, wine and spirits, and virtually all domestic sp irits and wine sold by the LCBO.  Foreign beer 
manufacturers, like their domestic counterparts, have the option of distributing from LCBO warehouses to retail outlets.  The LCBO applies the same volume and ad valorem  charges to domestic 
and imported beer based on the worldwid e production volume of the supplier.   
 
 
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 full and equal access to the 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 stor es and one agency.  This system is the exclusive 
retailer of all alcoholic beverages in the Province.  In addition, approximately 360 establishments are 
licensed for on premise consumption.  These licen sees purchase exclusively through the P.E.I.L.C.C. 
retail system.   
 
The following mark-up structure is  used to calculate the retail price of imported and domestic 
products:  manufacturers’ price, customs/excise, fre ight, an applicable mark-up applied to landed 
costs (differs per category), Provincial Health Tax (25 per cent), Goods and Services Tax (6 per cent), 
Provincial Sales Tax (10 per cent), and bottle deposit.   
 G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 32   
  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, public ly owned commercial corporation 
administered by a board of directors.  It has sole authority over the importation, sending, taking or transportation of any intoxicating liquor in Quebec, from any place w ithin or outside Canada.  The 
SAQ is not the sole vendor of alcoholic beverages in the province.   
 
The SAQ distributes to its own network of 400 government stores and 400 agencies, as well as a network of grocery and corner st ores which account for over 8000 outlets .  Products for distribution 
are warehoused in three distribution centres with a combined storage capacity of 4.3 million cases.   
 The selection, purchase and marketing of products are determined by principles defined in the SAQ’s 
marketing policy ( Politique de mise en marché),  together with the rules for registering products to the 
general inventory.    Wines without a varietal indication or an appellati on of origin designation that are bottled in Quebec, 
beers and light ciders may be sold in grocery stores.  Wines with a varietal indication or with an 
appellation of origin designation and spir its may only be sold in SAQ outlets.   
 Suppliers are responsible for promoting their pr oducts.  The services of a marketing officer are 
available.  Market forces determine quantities to be  imported.  Retail prices are decided by purchasing 
and merchandising policy.  A uniform mark-up, by category of product, whether imported or 
domestic, is applied.  Revenues are paid in the form of dividends to the sole shareholder, the 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 (February 1, 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;  and 2005, c.3 and 21.    
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 Saskat chewan.  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 profiles mu st be submitted or approved by the supplier.   
  G/STR/N/5/CAN, G/STR/N/6/CAN,  
 G/STR/N/7/CAN, G/STR/N/8/CAN,   G/STR/N/9/CAN, G/STR/N/10/CAN, 
 G/STR/N/11/CAN 
 Page 33 
  
  The SLGA operates 80 retail outlets in Saskatchewan , four of which offer a full line selection of 
specialty products in addition to  their assortment of general listi ngs.  In addition, the SLGA has 
granted authority to 190 operators of private bu siness establishments (agencies) in small rural 
communities to sell beverage alcohol products.    Any beer supplier that chooses to distribute its ow n products will be required, as are Saskatchewan 
suppliers, to adhere to provi ncial regulations governing, among other things, container 
specifications/returns, SLGA policies related to distribution on a province wide basis, uniform 
pricing, and two 24-bottle pack listings, due to  space limitations at the retail level.   
 The rules governing access to points of sale apply equa lly to domestic (including in-province) and 
foreign suppliers.  Audited cost-of-service charges are applied to all impor ted 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 (NTLC)  was established under Part II of the Liquor 
Act.  It is responsible for the operation of liquor  sales 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 ge nerate a specific level of revenue from the sale of 
liquor. Product cost, freight, container deposit,  general sales tax, retail, warehousing and 
administrative costs are also included with flat ra te mark-up when establishing a final price.   
 
A person who is eligible to purchase and consume liquor in the Northwest Territories may personally 
import 1140ml of spirits or wine or twelve 355ml cont ainers of beer.  An import permit is required to 
import quantities greater than the allowable amounts.    Retail and warehousing operations are carried out by 6 private sector contractors and 2 private 
warehousing outlet operators who are under license from the NTLC. 
 G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 34   
  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 licensing and enforcement in Nunavut.    Alcohol is allowed to be purchased in 5 Nunavut communities.  Those living in the 12 "restricted 
communities" are able to order alcohol products  from warehouse distribution centres but require 
approval from an alcohol education committee.  There are 8 "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, tr ansfer, cancellation or 
suspension of any liquor licenses, as well as, the en forcement 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 these 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 per cent tax on the retail 
value of all liquor products sold in the Yukon, as required by the Liquor Tax Act .   
 
Products are purchased from various locations across Cana da.  All beer, other than that brewed in the 
Yukon, is purchased from breweries in Vancouver.  Canadian made wine and spirits are purchased 
through suppliers in British Columbia, Alberta, Ontario and Quebec.  All imported products are 
purchased through the British Columbia Liquor Distri bution Branch, with the exception of special 
orders from customers which may be sourced direc tly by the YLC if not available through the BC 
Liquor Distribution Branch.  There are no restric tions on imported liquor pr oducts considered for 
purchase by the YLC in relation to category or origin.   
 
  G/STR/N/5/CAN, G/STR/N/6/CAN,  
 G/STR/N/7/CAN, G/STR/N/8/CAN,   G/STR/N/9/CAN, G/STR/N/10/CAN, 
 G/STR/N/11/CAN 
 Page 35 
  
  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 pr ice.  Mark ups in addition to the producer price 
include federal duty and excise tax, freight, YLC ma rk-up, refundable container deposit, and general 
sales tax.  
  G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  
G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 36 TABLE I  
 
STATE TRADING:  PROVINCIAL AND TERRITORIAL LIQUOR CONTROL AUTHORITIES 
STATISTICAL INFORMATION, IMPORTS  
 
Description of the 
product Year Total 
quantity 
imported1 Quantity 
imported by 
STEs Average 
import price 
by STEs2 Average 
representative 
domestic sales price 3 Mark-
up National 
production4 
1   2 3 4 5 6 7 
  April-March ‘000 litres ‘000 litres $Can/Litre $Can/Litre   $Can’000 
1997-1998 128,988 114,247  1.09 3.73   3,440,091  
1998-1999 155,208 131,851 1.14 3.73   3,383,014 
1999-2000 161,037 159,816 1.23 3.98   3,718,596 
2000-2001 183,919 164,876 1.34 3.97   3,933,377 
2001-2002 201,664 178,643 1.43 4.18   3,836,342 
2002-2003 219,557 205,980 1.49 4.31   3,866,739 
2003-2004 210,780 219,847 1.56 4.44   3,974,953  Beer 
22.03 
2004-2005 254,828 231,726 1.67 4.50  4,418,844 
1997-1998 210,401 191,136 3.23 11.21   407,569 
1998-1999 227,193 214,219 3.58 11.71   417,423 
1999-2000 243,753 224,529 3.76 12.42   527,311 
2000-2001 247,187 248,578 3.71 12.49   666,946 
2001-2002 253,067 249,247 3.77 12.82   663,609 
2002-2003 280,578 202,250 5.21 13.24   792,980 
2003-2004 275,874 284,979 4.22 13.82   867,839 Wine5 
22.04 22.05 22.06 
2004-2005 287,361 263,376 4.57 14.04  789,263 
  
   G/STR/N/5/CAN, G/STR/N/6/CAN, 
 G/STR/N/7/CAN, G/STR/N/8/CAN, 
 G/STR/N/9/CAN, G/STR/N/10/CAN,
 G/STR/N/11/CAN
 Page 37 
Description of the 
product Year Total 
quantity 
imported1 Quantity 
imported by 
STEs Average 
import price 
by STEs2 Average 
representative 
domestic sales price 3 Mark-
up National 
production4 
1   2 3 4 5 6 7 
1997-1998 26,500  21,688 9.64 27.42   866,692 
1998-1999 31,473 23,507 9.61 27.68   989,367 
1999-2000 31,216 27,067 8.96 27.37   1,086,886 
2000-2001 37,529 28,951 9.52 27.63  974,956 
2001-2002 37,176 30,626 9.91 27.32   954,143 
2002-2003 38,076 31,472 9.58  26.67   1,092,714 
2003-2004 41,050 33,148 12.12  26.29   808,847 Spirits6 
22.08 
2004-2005 55,422 32,560 11.38  27.05  773,667 
 
Notes :   
1. For wine, data includes all imports measured in litres and does not  include wine products measured in Litres of Pure Alcohol (L PA), which is less than 
2.5 million LPA per year over this period. For spirits, data in cludes all imports measured in LPA and does not include spirit p roducts measured in litres, 
which is less than 4 million litres per year  over this period.  Imports may include supplementary imports, including products i mported for further 
processing and re-exported under the import for re-expor t program.  Data is per calendar year.   
2. Average import prices are calculated as the value of imports by STES (the price in the country of origin) divided by the quant ity of imports by STEs.   
3. Average representative domestic sales price is calculated as the value of domestic sales of impor ted products with the goods a nd services tax and 
container tax, divided by the volume of import sales, on a calendar year basis.   
4. Production figures are represented by the value of shipments, a nd are calculated using the North American Industrial Classific ation System rather than 
HS codes.  Quantity data is not available.   
5. Wine includes vermouth, coolers and ciders.   
6. Spirits under column 3 may also include some types of cooler s.  Quantity data is reported in litres of pure alcohol.   
 
Sources : 
Column 2: Global Trade Atlas Database 1997-2005 Columns 3, 4: Statistics Canada, "Control and Sale of Alc oholic Beverages in Canada", Cat.63-202-XIB (1997-2005).   
Column 5: Statistics Canada, "Sales of Alcoholic Beverages of Liquor Authorities, Wineries and Breweries", Table 183-0015, Cana dian Socio-Economic 
Information Management System (CANSIM).   
Column 7: Statistics Canada, "Manufacturer’s Shipments, inventori es, orders and inventory to shipment ratios, by NAICS", Table 304-0014, Canadian 
Socio-Economic Information Management System (CANSIM).   
  
  G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  
G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 38 TABLE II  
 
STATE TRADING:  PROVINCIAL AND TERRITORIAL LIQUOR CONTROL AUTHORITIES 
STATISTICAL INFORMATION, EXPORTS 
 
Description of 
the product Year Total quantity 
exported1 Quantity 
exported by 
STEs   Average 
Procurement 
price  Average 
representative 
domestic sales price 
for sales of 
domestically-
produced alcohol2 Average export 
Price3  National 
production3  
1   2 3 4 5 6 7 
  April-March ‘000 litres ‘000 litres $Can/Litre $Can/Litre $Can/Litre $Can’000 
1997-1998 360,095 — Y 3.01 0.74 3,440,091  
1998-1999 356,744 — Y 3.10 0.75 3,383,014 
1999-2000 365,690 — Y 3.14 0.78 3,718,596 
2000-2001 413,855 — Y 3.21 0.85 3,933,377 
2001-2002 415,748 — Y 3.35 0.83 3,836,342 
2002-2003 394,746 — Y 3.52 0.85 3,866,739 
2003-2004 391,127 — Y 3.57 0.82 3,974,953  Beer 
22.03 
2004-2005 354,726 — Y 3.70 0.80 4,418,844 
1997-1998 3,693 — Y 7.02 3.13 407,569 
1998-1999 3,974 — Y 7.19 2.92 417,423 
1999-2000 17,729 — Y 7.35 2.79 527,311 
2000-2001 24,101 — Y 7.40 3.58 666,946 
2001-2002 43,913 — Y 7.66 2.64 663,609 
2002-2003 38,222 — Y 7.97 3.01 792,980 
2003-2004 19,440 — Y 8.14 2.87 867,839 Wine4 
22.04 22.05 22.06 
2004-2005 12,852 — Y 8.33 3.23 789,263 
1997-1998 65,647 — Y 20.73 8.03 866,692 Spirits5 
22.08 1998-1999 66,267 — Y 20.05 8.56 989,367 
  
   G/STR/N/5/CAN, G/STR/N/6/CAN, 
 G/STR/N/7/CAN, G/STR/N/8/CAN, 
 G/STR/N/9/CAN, G/STR/N/10/CAN,
 G/STR/N/11/CAN
 Page 39 
Description of 
the product Year Total quantity 
exported1 Quantity 
exported by 
STEs   Average 
Procurement 
price  Average 
representative 
domestic sales price 
for sales of 
domestically-
produced alcohol2 Average export 
Price3  National 
production3  
1   2 3 4 5 6 7 
1999-2000 72,661 — Y 19.69 8.56 1,086,886 
2000-2001 65,397 — Y 19.60 9.30 974,956 
2001-2002 62,522 — Y 17.99 9.00 954,143 
2002-2003 64,712 — Y 17.43 6.42 1,092,714 
2003-2004 66,703 — Y 17.88 6.68 808,847 Spirits5 
22.08 
(Cont'd) 
2004-2005 69,109 — Y 18.21 6.56 773,667 
 
Notes : 
"-" nil or zero. "Y" not applicable. 
1. Does not include foreign produce re-exported.   
2. Average representative domestic sales price is calculated as the value of domestic sales of domestically produced beverages wi th the goods and services 
tax, divided by the quantity of domestic sales, in a calendar year.   
3. Average export price is calculated as value of tota l exports divided by quantity of total exports.   
4. Production figures are represented by the value of shipments, a nd are calculated using the North American Industrial Classific ation System rather than 
HS coding.  Quantity data is not available.   
5. Wine includes vermouth, coolers and ciders.   
6. Spirits under column 3 may also include some types of cooler s.  Quantity data is reported in litres of pure alcohol.   
 
Sources : 
Column 2: Statistics Canada, "Control and Sale of Al coholic Beverages in Canada", Cat.63-202 (2005).   
Column 5:  Statistics Canada, "Sales of Alcoholic Beverages of  Liquor Authorities, Wineries and Breweries", Table 183-0015, Can adian Socio-Economic 
Information Management System (CANSIM).   
Column 6: Statistics Canada, "Control and Sale of Al coholic Beverages in Canada", Cat.63-202 (2005).   
Column 7: Statistics Canada, "Manufacturer’s Shipments, inventori es, orders and inventory to shipment ratios, by NAICS", Table 304-0014, Canadian 
Socio-Economic Information Management System (CANSIM).   
   
  G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  
G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 40 TABLE III  
 
STATE TRADING:  PROVINCIAL AND TERRITORIAL LIQUOR CONTROL AUTHORITIES 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
 
Description of the 
product Year Domestic 
purchases by 
STEs   National production1 Domestic Sales of 
Domestically-Produced 
Alcohol, by STEs National Consumption2 
1   2 3 4 5 
  April-March   $Can’000  ‘000 litres  ‘000 litres 
1997-1998 .. 3,440,091  1,920,139 2,033,197 
1998-1999 .. 3,383,014 1,950,048 2,074,152 
1999-2000 .. 3,718,596 1,953,192 2,103,377 
2000-2001 .. 3,933,377 1,959,595 2,117,122 
2001-2002 .. 3,836,342 1,997,645 2,167,879 
2002-2003 .. 3,866,739 1,961,878 2,184,657 
2003-2004 .. 3,974,953  1,987,719 2,232,756 Beer 
22.03 
2004-2005 .. 4,418,844 1,972,902 2,230,399 
1997-1998 .. 407,569 119,945 259,894 
1998-1999 .. 417,423 122,316 272,539 
1999-2000 .. 527,311 126,187 287,622 
2000-2001 .. 666,946 128,993 303,712 
2001-2002 .. 663,609 131,182 316,688 
2002-2003 .. 792,980 137,174 333,661 
2003-2004 .. 867,839 136,682 343,299 Wine2 
22.04 22.05 22.06 
2004-2005 .. 789,263 145,611 360,193 
1997-1998 .. 866,692 103,541 138,251 
1998-1999 .. 989,367 111,201 147,578 Spirits3 
22.08 
1999-2000 .. 1,086,886 115,358 155,415 
  
   G/STR/N/5/CAN, G/STR/N/6/CAN, 
 G/STR/N/7/CAN, G/STR/N/8/CAN, 
 G/STR/N/9/CAN, G/STR/N/10/CAN,
 G/STR/N/11/CAN
 Page 41 
Description of the 
product Year Domestic 
purchases by 
STEs   National production1 Domestic Sales of 
Domestically-Produced 
Alcohol, by STEs National Consumption2 
1   2 3 4 5 
2000-2001 .. 974,956 118,638 162,007 
2001-2002 .. 954,143 135,537 182,313 
2002-2003 .. 1,092,714 142,517 192,648 
2003-2004 .. 808,847 143,288 197,470 Spirits3 
22.08 
(Cont'd) 
2004-2005  773,667 142,556 197,342 
 
Notes : 
 
".." not available.   
1. Production figures are represented by the value of shipments, a nd are calculated using the North American Industrial Classific ation System rather than 
HS coding.  Quantity data is not available.   
2. National consumption is represented by th e total quantity of domestic sales of impor ted and domestic products.  It does not in clude homemade beer and 
wine, wine and beer manufactured through brew-on-premises opera tions, all sales to Canadian residents in duty free shops and an y other unreported 
transactions.  Export sales are not included.   
3. Wine includes vermouth, coolers and ciders.   
4. Spirits under column 3 may also include some types of cooler s.  Quantity data is reported in litres of pure alcohol.   
 Sources
: 
 
Column 3: Statistics Canada, "Manufacturer’s Shipments, inventor ies, orders and inventory to shipment ratios, by NAICS", Table 304-0014, Canadian 
Socio-Economic Information Management System (CANSIM).   
Columns 4, 5: Statistics Canada, "Control and Sale of Al coholic Beverages in Canada", Cat.63-202-XIB (2005).  G/STR/N/5/CAN, G/STR/N/6/CAN,  
G/STR/N/7/CAN, G/STR/N/8/CAN,  G/STR/N/9/CAN, G/STR/N/10/CAN, 
G/STR/N/11/CAN 
Page 42   
  General Notes to Section IV
 
 1. All trade statistics are on an f.o.b. basis.   
 
2. Values in Tables I, II, and III are expressed in  Canadian dollars.  Applicable exchange rates 
for conversion to US dollars are listed below.   
 
January-December April-March August-July 
Year $Can/$US Year $Can/$US 
1997 1.384 1997-1998 1.403 1.427 
1998 1.483 1998-1999 1.504 1.510 
1999 1.486 1999-2000 1.471 1.472 
2000 1.485 2000-2001 1.504 1.524 
2001 1.548 2001-2002 1.565 1.570 
2002 1.570 2002-2003 1.549 1.497 
2003 1.401 2003-2004 1.353 1.338 
2004 1.302 2004-2005 1.279 1.241 
2005 1.211    
 
Source : The annual average of monthly average noon exchange rates supplied by the Bank of Canada.   
   
__________