WORLD TRADE  
ORGANIZATION   
G/STR/N/14/CAN 
6 July 2012 
 (12-3613) 
Working Party on  
State Trading Enterprises Original:   English 
 
 
 
STATE TRADING 
 
New and Full Notification Pursuant to Article XVII:4(a) of the  
GATT 1994 and Paragraph 1 of  the Understanding on  
the Interpretation of Article XVII 
 
CANADA 
 
 
 The following communication, dated 29 June 2012,  is being circulated at the request of the 
Delegation of Canada. 
 
_______________ 
  
 Pursuant to the provisions of Article XVII: 4(a) of the GATT 1994 and paragraph 1 of the 
Understanding on the Interpretati on of Article XVII, Canada subm its herewith its notification 
concerning state trading enterprises.  This notifi cation covers the Canadian Dairy Commission, the 
Canadian Wheat Board, the Freshwater Fish Market ing Corporation and the Provincial and Territorial 
Liquor Control Authorities for the period  covering 2009/2010 to 2010/2011.   G/STR/N/14/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 provide 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 dairy produc ts 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 ite ms 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.international.gc.ca/cont rols-controles/index.aspx?view=d .   
 
 Under the import regime in place until 1 A ugust 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 impor ts 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 op erations 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 
industrial milk, the assumed processor margin and th e support prices for butter and skim milk powder, 
as well as administering other marketing programmes. 
  G/STR/N/14/CAN 
 Page 3 
 
 
  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 th e 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.  Certain niche markets with specific requirements 
are supplied through specific import permits issued by  the EICB.  The allocation of import permits for 
other dairy products subject to TRQs is administered by EICB under the authority of the Export and 
Import Controls Act  (information respecting the importation of  dairy products may be obtained at the 
website of the Department of Forei gn Affairs and International Trade, 
http://www.international.gc.ca/controls-controles/index.aspx?view=d ). 
 
D. How import/export levels are established by the state trading enterprise  
 
 Pursuant to Canada's Uruguay Round market access commitments, a butter 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 2011, dairy producers operated approxi mately 12,965 farms in Canada.  Virtually all of 
these farms produce milk for two markets:  the fluid market (table milk and cream) and the industrial 
market (manufactured dairy products such as butte r, cheese, yogurt and ice cream).  Dairy processors 
include dairies that process raw milk for fluid cons umption or industrial use, and further processors 
who use dairy ingredients and products as inputs for other finished goods.   
  The marketing of fluid milk is regulated at the 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.  Representatives of national producer, pro cessor, and consumer organizations participate as G/STR/N/14/CAN 
Page 4 
 
 
  non-voting members.  Each year, the CMSMC sets a national industrial milk production target called 
the market sharing quota (MSQ), taking into consider ation:  stocks of dair y 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 th e 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 receiv es sets the limit on the amount of industrial milk 
production that is eligible for sale.    
 Imports of dairy products ar e 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/cre am, 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/14/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 
Butter and Other Fats and Oils 
Derived from Milk 04.05 August-July >000 kg >000 kg CAD/kg CAD/kg … >000 kg 
2009-2010 8,594 3,274 3.11 3.40 … 85,104 
2010-2011 8,170 3,237 4.47 4.49 … 87,047 
 
 
Notes: 
“…”  indicates not applicable.   1. Total quantity imported includes supplementary imports, including products imported 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.   
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 
whey butter.   
  
  G/STR/N/14/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 
Butter and Other Fats and 
Oils Derived from Milk 04.05 August-July >000 kg >000 kg CAD/kg CAD/kg CAD/kg >000 kg 
2009-2010 7,309 675 5.73 9.45 4.07 85,104 
2010-2011 1,413 125 3.02 9.41 4.20 87,047 
 
 
Notes:  
1. Comprises the average representative domestic retail sales price.   
 
Sources :   
Column 2:  Statistics Canada.   
Columns 3, 4, 6: Canadian Dairy Commission. 
Column 5:  Statistics Canada, Table 326-0012 - Average retail prices for food and other selected items, monthly (Dollars).  Cal culations for dairy year (August to July) 
done by Agriculture and Agri-Food Canada (AAFC).     
Column 7: Statistics Canada, Table 003-0009.  Butter includes salted, unsalted (sweet, cultured, flavoured), whipped and reduce d–calorie.   
 Data is for creamery butter and whey butter.   
 
 
 
  
   G/STR/N/14/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 
Butter and Other Fats and 
Oils Derived from Milk 
04.05 August-July >000 kg >000 kg >000 kg >000 kg 
2009-2010 22,664 85,104 24,687 90,966 
2010-2011 18,434 87,047 23,031 95,131 
 
 
Notes: 
1. Domestic purchases by state trading enterprise ar e comprised of CDC Plan A and Plan B purchases.   
2. National consumption is represented by domestic disappearance calculated as the sum of net stocks, production and imports, l ess exports.  Domestic disappearance 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 disp osition of milk products in Canada, monthly.  Data are for cre amery butter.   
 
 
 
 
 
 
 G/STR/N/14/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 Rive r 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, whea t 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 contracts 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/14/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 consumption 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 a nd other exporters.  Lists of the CWB's AEs by 
region in which they conduct business can be found on the CWB's website at:  http://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.  
In this circumstances, the AE conducts all negotia tions, buys the grain from the CWB on a cash basis, 
and assumes responsibility for its foreign exchange, do cumentation, 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 inte rested 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.    F
ARMERS – PRODUCER DIRECT SALE 
 
 Farmers themselves can also export wheat and ba rley by using the CWB's producer direct sale 
(PDS) program.  By using this program, the farmer es sentially 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/14/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 US futures exchange prices and those of  competing suppliers from other origins.  For 
example, depending on the type and quality of th e 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 competition is wheat, from an origin other than the 
U.S., the price of that wheat must be considered .  In these and other cases, for example, for malting 
barley and durum wheat, effective futures contracts 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 pro cess 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 CWB 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 contract ual obligations entered into by government.   
 H. Brief description of market structure  
 
Approximately 68,000 farmers (based on the number of CWB delivery permits issued 
in 2010-11) in Alberta, Saskatchewan, Manitoba  and the Peace River area of British Columbia 
produce most of Canada's wheat and barley, wh ich are grown for both the domestic and export 
markets.  Domestically, Canadian cereal grains are used mainly in processing (e.g. flour milling, 
malting) and livestock feed.  The CWB's domestic pr icing 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 se veral years:  As of 1 March 2012, there were 
345 primary elevators that were licensed by the Canadian Grain Commission in Western Canada.  
This compares to 1,058 in existence at 1 August 1998, and 1,578 at 1 August 1990.    G/STR/N/14/CAN 
 Page 11 
 
 
  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 E xport and Import Controls 
Bureau web site, located at:  http://www.international.gc.ca/cont rols-controles/index.aspx?view=d  
 
 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 11 June 1998 continued the CWB 
as a shared governance corporation, without share cap ital.  As a result of the amendments, effective 
31 December 1998 the CWB ceased to be an agent of  Her Majesty and a Crown corporation within 
the meaning of the Financial Administration Act .  Ten directors are directly elected by farmers, and 
other directors are appointed by the Government  of Canada.  The president and chief executive 
officer, who also sits on the board of directors, is appointed by the Gove rnment of Canada after 
consultation with the board of directors.  The boa rd 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 transporta tion 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 
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 G/STR/N/14/CAN 
Page 12 
 
 
  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 pri ce 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 mo re 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.  Si nce 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 http://www.cwb.ca/ .   
 
  
   G/STR/N/14/CAN
 Page 13TABLE I 
 
STATE TRADING:  CANADIAN WHEAT BOARD (CWB) 
STATISTICAL INFORMATION, IMPORTS1 
 
Description of product Year Total quantity 
imported2 Quantity 
imported by state 
trading 
enterprise Average 
import price Average 
representative 
domestic sales 
price Mark-up National 
production 
1  2 3 4 5 6 7 
 August-July tonnes tonnes CAD/tonne CAD/tonne  tonnes 
Wheat (including durum) 10.01 2009-2010 117,000 - … … … 26,848,000 
2010-2011 68,000 - … … … 23,167,000 
Barley 
10.03 2009-2010 42,000 - … … … 9,517,000 
2010-2011 43,000 - … … … 7,605,000 
 
Notes: 
"-" indicates zero.   
"..."  indicates not applicable. 
1. The Canadian Wheat Board has no authority over the importation of wheat or barley and no jurisdiction to import either produ ct.   
2. "Tonnes" are expressed as grain equivalent.   
 
 
Sources :  
Columns 2, 7: Statistics Canada, "Cereals and Oilseeds Review", various issues, Catalogue No. 22-007-XIB.   
  
  G/STR/N/14/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 
price4 Average 
representative 
domestic sales 
price5 Average 
export price6 National 
production 
1  22 3 4 5 6 7 
 August-July tonnes tonnes CAD/tonne CAD/tonne CAD/tonne tonnes 
Wheat (including durum) 10.01 2009-2010 18,482,000 17,373,000 231 250 285 26,848,000 
2010-2011 16,192,000 14,608,000 335 386 427 23,167,000 
Barley3 
10.03 2009-2010 2,149,000 2,149,000 220 232 314 9,517,000 
2010-2011 2,014,000 2,014,000 268 280 310 7,605,000 
 
Notes: 
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 
Canadian Wheat Board designated area as well as product exports by domestic processors.   
2. "Tonnes" are expressed as grain equivalent.   
3. For barley, the average domestic sales pr ice exceeds the average export price, in some  years, due to the higher percentage o f higher-value malting barley compared to 
feed barley being sold domestically.   
4. Average Canadian Wheat Board asking price in-store Vancouver/ St. Lawrence. For wheat, weighted  average of non-durum wheat an d durum. 
5. For wheat, weighted average non-durum wheat and durum asking price at Thunder Bay.   
For Select Canada Western Two-Ro w, I/S St Lawrence, Vancouver, 1st Aug Canadian Wheat Board fob Price.   
6. For wheat:  weighted average non- durum wheat and durum export price. 
For barley (total value/total volume): aver age crop year price for all classes (desig nated, feed and barley malt), and all grad es. 
 
Sources :   
Columns 2, 6, 7: Statistics Canada, "Cereals and Oilseeds Review", various issues, Catalogue No. 22-007-XIB.     
Columns 3, 4, 5: Canadian Wheat Board. 
 
  
   G/STR/N/14/CAN
 Page 15 TABLE 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 
Enterprise2 National 
Consumption3 
1  2 3 4 5 
 August-July tonnes1 tonnes tonnes tonnes 
Wheat (including durum) 
10.01 2009-2010 19,017,000 26,848,000 … 7,202,000 
2010-2011 17,633,000 23,167,000 … 7,697,000 
Barley 
10.03 2009-2010 1,444,958 9,517,000 … 7,670,000 
2010-2011 1,133,066 7,605,000 … 6,776,000 
 
Notes:  
“…”  indicates not applicable. 1. "Tonnes" are expressed as grain equivalent.   
2.  Prior to 1998-99, grain sales to domestic processors for further processing and export were accounted for as export sales.  Beginning in 1998-99, these sales are 
classified as domestic sales.   
3. National consumption accounts for grain (including imports) used for human consumption, animal feed, seed requirement, indus trial use, waste and dockage, and losses 
in handling.   
 
Sources :   
Column 2: Canadian Wheat Board Annual Repo rt, Statements of Pool Operations, Wheat = wheat + durum pool receipts.  Barley= barl ey + designated barley pool 
receipts. 
Column 4:  Canadian Wheat Board. 
Columns 3, 5:   Statistics Canada, "Cereals and Oilseeds Review", various issues, Catalogue No. 22-007-XIB. 
 
 
 
 
 G/STR/N/14/CAN 
Page 16 
 
 
  I. Enumeration of State Trading Enterprises 
 
 Freshwater Fish Marketing Corporation.    II. Reasons and Purpose for introducin g 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 Al berta, 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.  Ontario (effective March 30, 2010) and Saskatchewan (effective April 1, 2012) have 
left the FFMC arrangement and deregulated their commercial freshwater fish markets.  This notification will use the term "agreement areas" to denote areas within Canada covered by these 
agreements.   
  On 14 June 1995, the government announced the introduction of measures allowing 
fishermen in the agreement are as to sell their 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 2009) with annua l income which has ranged between Can$40 million 
and Can$68 million since 1990.    III. Description of the functioning of the enterprise 
  Whether the enterprise deals with exports or with imports or both.   
 
 The FFMC is concerned with the orderly 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 traders'  activities – including thei r 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/14/CAN 
 Page 17 
 
 
   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 place (if this is the case) in products affected 
 
 The Freshwater Fish Marketing Corporation is  not involved in the importation of freshwater 
fish. Total imports of freshwater  fish from HS Codes 0302, 0303, 0304, and 0305 
totalled 19,203,642 kg in 2009, 19,165,708 kg in 2010, and 23,551,759 kg in 2011.    
 VI.  Additional information 
  Not applicable. 
  
  G/STR/N/14/CAN 
Page 18  
TABLE I 
 
 STATE TRADING:  FRESHWATER FISH MARKETING CORPORATION 
STATISTICAL INFORMATION, IMPORTS  
 
 
 
Description of product Year Total 
quantity 
imported Quantity imported 
by state trading 
enterprise Average 
import 
price Average 
representative 
domestic sales 
price Mark-
up National 
production 
1  2 3 4 5 6 7 
Freshwater Fish 
Within HS Codes 0302, 0303, 
0304 and 0305 2009 
Refer to V. above. 
  
   G/STR/N/14/CAN
 Page 19TABLE II 
 
STATE TRADING:  FRESHWATER FISH MARKETING CORPORATION 
STATISTICAL INFORMATION, EXPORTS  
 
Description of product Year Total 
quantity 
exported1 Quantity 
exported by 
state trading 
enterprise Average 
procurement 
price2 Average 
representative 
domestic sales 
price Average 
export price National 
production3 
1  2 3 4 5 6 7 
Freshwater Fish  
Within HS Codes 0302, 0303, 
0304 and 0305 May-April (000's lbs) (000's lbs) C$ per pound C$ per pound C$ per pound - 
2009-2010 38,506 15,126 1.26 3.17 3.46 - 
2010-2011 43,015 16,493 1.20 2.83 3.29 - 
 
Notes: 
1. Total Quantity Exported is the total exports for the HS codes that include the products 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) di stributed to fishers.   
3. Statistics on national production of freshwater 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/14/CAN 
Page 20 TABLE III 
 
STATE TRADING:  FRESHWATER FISH MARKETING CORPORATION 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
 
 
Description of 
product Year Domestic purchases 
by state trading enterprise National 
Production1 Domestic sales by 
state trading 
enterprise National 
Consumption2 
1  2 3 4 5 
Freshwater Fish  Within HS Codes 0302, 
0303, 0304 and 0305 May-April (000's lbs)  (000's lbs)  
2009-2010 27,672 - 3,783 - 
2010-2011 24,024 - 3,779 - 
 
Sources : 
Column 2:  Deliveries report to Transcona processing plant.   
Column 4:  FFMC Sales Analysis Report.   
 
1. Statistics on national production of freshwater fish products are not collected.   
2. Statistics on national consumption of freshwater fish products are not collected.   
 
  G/STR/N/14/CAN 
 Page 21 
 
 
  I. Enumeration of State Trading Enterprises 
 
A. Identification of state trading enterprises  
 
Provincial and Territorial Liquor Control Authorities.   
 
B. Description of products affected (including tariff item number(s) encompassed in product 
description)  
 
2203.00  Beer from malt.   
2204.00 Wine of fresh grapes, including fortified wines;  grape must other than that of 
heading 20.09.   
2205.00 Vermouth and other wine of fresh gr apes flavoured with plants or aromatic 
substances.   
2206.00 Other fermented beverages (for example, cider, perry, mead);  mixtures of 
fermented beverages and mixtures of fermented beverages and non-alcoholic 
beverages, not elsewhere specified or included.   
2208.00 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80 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/14/CAN 
Page 22 
 
 
  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 jurisdictions.  Exportati on 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, transportati on 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 br ing 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 "A greement between the European Economic Community 
and Canada concerning trade and comm erce in alcoholic beverages" which requires the complete phase out of 
mark-up differentials between wine of the Community and Canadian wine by 1 January 1998.  Mark-up 
differentials on distilled spirits were to be eliminated as of 1 January 1993.   
Canada - Import, Distribution and Sale of Certain Alcoholic Drinks by Provincial Marketing 
Agencies (1992).  The US-Canada Memorandum of Understanding on Provincial Beer Marketing Practices 
(August 1993) resulted in the elimination of disc riminatory 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.    G/STR/N/14/CAN 
 Page 23 
 
 
  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 2010-2011 the value of all alcoholic beverages produced in Canada stood at $6.1 billion compared 
to $6.3 billion in 2009-2010.3 Alcoholic beverage imports of all kinds amounted to $1.2 billion 
in 2011 while total exports stood at $835 million the same year.4   
 
The brewing industry5 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 207 brewing and microbrewing establishments across the country.6  
The microbrewery industry has steadily grown in Canada, catering to niche tastes and regional 
markets.  Canada's geography and the fact that alcohol sales and production are controlled at the 
provincial level mean that the products of microbr eweries are usually available only in the regions 
where they are produced.  Canadians drink more be er than any other alcoholic beverage, however 
domestic per capita consumption of beer has declin ed steadily since the 1970s  and reached a low of 
73.9 litres in 2010.7 Western Canada also produced 1.4 milli on tonnes of malting barley for export in 
2010-11, which is in demand by leading foreign br eweries that recognize the high quality of this 
product.8 
 
The Canadian wine industry9 continues to grow, evolving in response to rapid changes 
stemming from adjustments to trade liberalization under the Canada-United States FTA and 
GATT 1947.  Domestic vintners now grow quality Vitis Vinifera and hybrid grapes which have 
resulted in a dramatic improvement in the quality of Canadian wine.  Canadian Icewine, a sweet 
dessert wine, has won several prestigious awards at international competitions and has gained 
considerable international rec ognition.  Among the larger firms there is a significant amount of 
production which involves bottling and bl ending of domestic and importe d wines.  However, most of 
these larger corporations have also acquired sma ller estate wineries which have retained their own 
identity and which help them to define their "si gnature" premium products.  In addition, there are 
many small family-oriented businesses which conc entrate on the production of wine from Canadian 
                                                      
3 Statistics Canada, Canadian Socio-Economic Information Management System (CANSIM), 
Manufacturing Shipments.   
4 Agriculture and Agri-Food Canada, Canadian Agricu lture Trade Statistics (Statistics Canada Data).   
5 Canada’s brewing industry is defined by the North American Industrial Classification 
System (31212).   
6 Statistics Canada. Table 301-0006 - Principal statistics for manufacturing industries, by North 
American Industry Classification System (NAICS), annual, CANSIM (database).  
7 Per capita consumption is measured as: available litres  ale, beer, stout and porter, adjusted for losses, 
per person 15 years old and over. Source: Statistics Canada.  Table  002-0011 -  Food available in Canada, 
annual, CANSIM (database). 
8 Agriculture and Agri-Food Canada, Canadian Agricu lture Trade Statistics (Statistics Canada Data).   
9 Canada's wine industry is defined by the North American Industrial Classification System (31213).   G/STR/N/14/CAN 
Page 24 
 
 
  grown grapes.  Domestic per capita consumption of wine in Canada has increased steadily since the 
early 1990s and reached a high of 15.6 litres 2010.10   
 
The distillery industry11 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 highly  concentrated.  Most comp anies are subsidiaries of 
multinational corporations with production facilities maintained in  Canada in order to produce 
Canadian whisky, which has a registered geographi cal indication in Canada.  Domestic consumption 
for spirits fluctuates from year to year, but does not display a clear long term trend.  In 2010, Canadians consumed 6.9 litres of spirits per capita.
12   
 
IV. Statistical Information 
 
The relevant statistical information is attached.  See Tables I - III 
 
V. Reason why no foreign trade has taken place (i f 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 
                                                      
10 Per capita consumption is measured as: available litres of wine, adjusted for losses, per person 
15 years old and over. Source: Statistics Canada.  Table  002-0011 - Food available in Canada, annual,  
CANSIM (database). 
11 Canada's distillery industry is defined by the North American Indu strial Classification 
System (31214).   
12 Per capita consumption is measured as: available litres of distilled spirits, adjusted for losses, per 
person 15 years old and over. Source: Statistics Canada.  Table 002-0011 - Food available in Canada, annual,  
CANSIM (database).  G/STR/N/14/CAN 
 Page 25 
 
 
  ALBERTA 
 
The liquor authority in Alberta, namely the Alberta Gaming and Liquor Commission, does 
not make commercial decisions on the product selecti ons for alcoholic bevera ges 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.  Under the Alberta system, 
imported and domestic products are given the same treatment.  
 
The Alberta Gaming and Liquor Commission (AGLC) regulates liquor and gaming activities 
in the Province.  The AGLC administers and enforces the Gaming and Liquor Act  and the Gaming 
and Liquor Regulation  as well as related policies, and collects the government's flat mark-up on 
beverage alcohol.    
In Alberta, private-sector liquor agencies de termine what products w ill 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, cons olidation, 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 st ructure are a flat rate per litre.  Retailers 
set retail prices according to market forces.    
 The warehousing and distribution of beverage alcohol 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 arrangement s.  Final approval for such arrangements is 
required from the AGLC.    
 
BRITISH COLUMBIA 
 
ACTS AND REGULATIONS 
 
- Liquor Distribution Act , R.S.B.C. 1996, c.238 as amended and the regulations thereto 
 
SUMMARY OF LIQUOR MARKETING PRACTICES 
 
The Liquor Distribution Branch (LDB) is the im porter of record for all alcoholic beverages 
imported into British Columbia.  Section 2(2) of the Liquor Distribution Act  states that the LDB "has 
the sole right to purchase, both in and out of Br itish Columbia, liquor for resale and reuse in British 
Columbia in accordance with  the provisions of the Importation of Intoxicating Liquors Act (Canada)".   G/STR/N/14/CAN 
Page 26 
 
 
  As of March 31, 2011 the LDB operated 197 govern ment liquor stores.  As of March 31, 
2011 there was also a large private retail system consisting of 672 private liquor stores, 223 rural 
agency stores, 54 wine stores, and 233 manufact urer 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, regardle ss of category or origin.  A limited number of 
privately-operated wine stores are restricted to selling British Columbia wines and manufacturer 
stores can only sell products made by that manufacturer.    
All liquor products sold in British Columbia must be registered with the LDB.  The LDB 
determines which products are sold in government stores based on customer demand and operators of 
private outlets determine which products they wish to sell in their stores.   
 
Suppliers or their agents determine the prices at  which products are sold to the LDB.  The 
LDB applies standard pricing formulas to the 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 Pr ovince must meet the MLCC 's listing criteria.  The 
criteria applies to all beverage alcohol in a unif orm and non-discriminatory manner, irrespective of 
country of origin.    
Spirits, wine, coolers and beer are warehou sed by the MLCC and distributed to 52 
government-owned stores, 177 privately-owned agency stores, 8 specialty wine stores, 4 duty-free stores, and 1,600 licensed premises.  In addition, 5 privately-owned beer distributors warehouse and 
service the 52 government-owned stores, 267 privately-owned beer stores, and 1,600 licensed 
premises.  Privately distributed beer, which may be  either import or domestic, do not have any sales 
quotas applied, as the inventories are privately held  and are the responsibility of the suppliers.   
 
Beverage alcohol's retail price is determin ed by applying combination of a category ad 
valorem mark-up and a category flat rate per litre to th e landed cost.  Minimum mark-ups apply to all 
products but there are no minimum prices, with the ex ception of single serve beer.  The same category 
and minimum mark-ups are applicable to like produc ts regardless of country of origin for products 
warehoused by the MLCC.   
 
Audited cost of service differentials (commercial considerations) are applied at a flat per litre 
charge per category.   
  G/STR/N/14/CAN 
 Page 27 
 
 
   
 
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 Ne w Brunswick is done through the New Brunswick 
Liquor Corporation (ANBL).  All suppliers have full and equal access to the ANBL's listing process.  
Listed products receive distribution to the en tire retail system, including agents and licensed 
establishments.  Marketing programs are available to all suppliers on an equal access basis.   
 
 The ANBL maintains a retail system of 48 stores and 72 agency outlets.  This system is the 
exclusive retailer of all alcoholic beverages in  the province.  In addition, approximately 
1,531 establishments are licensed for on-premis e consumption.  These licensees buy exclusively 
through the ANBL retail system described above.   
  Suppliers have the option of establishing thei r own in-province warehouse and distribution or 
going through ANBL's central warehouse and distributi on system.  A service charge is applied to all 
beer products going through the ANBL warehouse and distribution system.   
 
 Retail price is determined by applying an ad valorem  mark-up to the product's landed cost (at 
point of sale).  Rates are listed in the Mark-up St ructure document and are applied uniformly to all 
products regardless of origin.  Minimum and ma ximum mark-ups, floor retail prices and minimum 
social reference retail prices, where applicable, ar e listed in the Mark-up Structure and Beer Listing 
Policy documents.   
 
 
NEWFOUNDLAND and LABRADOR 
 
ACTS AND REGULATIONS  
- The Liquor Corporation Act , R.S.N. 1990, c.L-19, and the regulations thereto, and their 
amendments.   
- The Liquor Control Act , R.S.N. 1990, c.L-18, and the regulations thereto, and their 
amendments.   
 
 Please note that there have been no major amendments to the above legislation over the 2009-
2011 time period.    
SUMMARY OF LIQUOR MARKETING PRACTICES 
  Importation of alcoholic beverages to the province of Newfoundland and Labrador can only 
be done through the Newfoundland and Labrador Liquor  Corporation (NLC).  In order for the NLC to 
import alcoholic beverages for sale in the province, the producer must complete a listing application 
and the NLC must approve the application.  Suppli ers of spirits and wines are required to operate 
through the NLC warehouse and related distribu tion systems.  Between 2005-06 and 2010-11 the 
mark-up structure was established within product categories and was the same regardless of product G/STR/N/14/CAN 
Page 28 
 
 
  origin.   The mark-up structure for spirits, liqueurs and win es is applied to landed cost and consists of a 
combination of a flat fee and a percentage of lande d cost.  Provincial and federal 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 2009-10 
to 2010-11:   
 Year    Corporate   Agency 
 
 2009-10  24   111 
 2010-11  24   118  
 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 Scotia Liquor Corporation (NSLC).  In 2001, 
the NSLC was transformed from a Commission into a provincial Crown Corporation and renamed the 
Nova Scotia Liquor Corporation.  The NSLC's listing policies provide equal access to all products 
regardless of origin based on category management  principles.  Suppliers, of both domestic and 
imported products, are required to operate th rough the NSLC central warehouse and related 
distribution system.  All beer suppliers, regardl ess 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 106 liquor stores operated by the N SLC.  There are also 55 small businesses serving as 
NSLC agency stores, 4 private wine and specialty st ores, 12 manufacturer's on-site outlets (breweries 
or distilleries), and 14 farm-gate stores permitted to sell their own wine directly to consumers.   
  Mark-ups are established by package size within product categories and are the same 
regardless of product origin within a given cate gory.  All products whic h go through the warehouse 
are charged the same cost-of-service within a given category.    
 
ONTARIO 
 
ACTS AND REGULATIONS  
- Liquor Control Act , R.S.O. 1990, c. L.18;   
- Alcohol and Gaming Regulation and Public Protection Act, R.S.O. 1996, c. 26;   
- Liquor Licence Act, R.S.O. 1990, c. L.19;   
- and the regulations thereto,  and their amendments.   
 
SUMMARY OF LIQUOR MARKETING PRACTICES  
 Ontario's beverage alcohol distribution and reta il system is characterized by a mix of private 
and public operations.  The Liquor Control Board of Ontario (LCBO) and the Alcohol and Gaming Commission of Ontario (AGCO), both government ag encies, are the primary bodies responsible for  G/STR/N/14/CAN 
 Page 29 
 
 
  controlling the manufacture, movement and sale of be verage alcohol within the province, respectively 
through the Liquor Control Act  (LCA) , and the Alcohol and Gaming Regulation and Public 
Protection Act (AGRPPA).  The Liquor Licence Act sets the conditions under which a person may 
keep for sale, offer for sale, or sell liquor  under a licence or permit issued under the act .  T h i s  
includes, for example, manufacturers, manufacturers ' representatives, bars, restaurants, hotels and 
persons selling or serving liquor on special occasions.   
 
 The LCBO is responsible for importing liquor in to Ontario, transporting and selling domestic 
and imported spirits, wine and beer.  The agency also tests products for quality control and safety, 
fixes liquor prices, and controls the warehousing of beverage alcohol.   
  The LCBO establishes and operates retail liquor  stores across Ontario, including its agency 
stores in smaller communities.  All suppliers, domes tic and foreign, have equal access to LCBO's 
purchasing system.  All liquor sold by the LCBO must  meet its listing criteria and gross profit quotas.  
The LCBO shares marketing costs with suppliers.  S uppliers or their agents determine the prices at 
which products are sold to the LCBO.  The LCBO applies standard pricing formulas to the supplier 
price to determine the retail price.    
 Other authorized retailers include private beer stores, private duty-free stores and 
manufacturers' retail stores (winery stores on- and off-site, and on-site beer and spirits stores) 
authorized under AGRPPA to sell exclusively their domestic products. Sales of imported products not 
sold in LCBO stores can be ordered throu gh LCBO’s Private Order program and by LCBO-
authorized sacramental wine vendors for sacramental purposes.    
 The number of private off-site stores is li mited by the Canada-United States FTA and the 
NAFTA.  Certain restrictions on the operation of o ff-site stores are also contained in the Canada-EC 
Agreement concerning Trade and Co mmerce in Alcoholic Beverages (a s modified by the Canada-EC 
Agreement on Trade in Wines and Spirit Drinks).    
 Brewers Retail Inc. (BRI) is a privately owned company operating beer stores under the 
authority of AGRPPA.  It sells domestic and impor ted beer to the public and is the primary 
distribution channel for beer in the province.  BRI purchases its imported brands from the LCBO. 
 
 Foreign beer manufacturers, like their domestic  counterparts, have the option of distributing 
from LCBO warehouses to retail outlets.  The LCBO applies charges to domestic and imported beer 
based on the worldwide production volume of the supplier.   Domestic beer sold in the Beer Store, an 
on-site manufacturer's store or in a licensed estab lishment is subject to beer taxes under AGRPPA.  
These volume taxes are equivalent to the volume charges applied by the LCBO. 
 
 
PRINCE EDWARD ISLAND 
 
ACTS AND REGULATIONS 
 
- Liquor Control Act and Regulations, R.S.P.E.I. 1988, c.L-14 and the regulations thereto, and 
their amendments.   
 
SUMMARY OF LIQUOR MARKETING PRACTICES  
 Importation of alcoholic beverages into Prin ce Edward Island (P.E.I.) is done through the 
P.E.I. Liquor Control Commission.  All suppliers ha ve 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.   
 G/STR/N/14/CAN 
Page 30 
 
 
   The P.E.I.L.C.C. maintains a retail system of 19 stores and one agency.  This system is the 
exclusive retailer of all alcoholic beverages in th e Province, with the exception of 3 manufacturers on-
site outlets (breweries or distilleries), and 2 farm-gat e stores permitted to sell their own wine directly 
to consumers.  In addition, approximately 374 establishments are licensed for on premise 
consumption.  These licensees purchase exclusively through the P.E.I.L.C.C. retail system.  The 
Province also licences 4 brew-on-premise locations that provide facilities to the general public to 
brew their own beer or wine from kits.  
  The following mark-up structure is used to calculate the retail price of imported and domestic 
products:  manufacturers' price, customs/excise, frei ght, an applicable mark- up applied to landed costs 
(differs per category), Provincial Health Tax ( 25 per cent), Goods and Services Tax (5 per cent), 
Provincial Sales Tax (10 per cent), and bottle deposit.   
 
 
QUEBEC 
 
ACTS AND REGULATIONS  
-  Act respecting the Société des alcools du Québec  (RSQ, c. S-13, s. 16) 
 SUMMARY OF LIQUOR MARKETING PRACTICES 
 
 The Société des alcools du Québec  (SAQ) is an independent, publicly owned commercial 
corporation administered by a board of directors.  It has sole authority over the importation, delivery, 
taking or transportation of any intoxicating liquor in  Quebec, whether produced in Canada or abroad.  
 
 The SAQ distributes alcoholic beverages to its  own network of 408 government stores and 
399 agencies, as well as a network of grocery and corner stores that account for over 9,000 outlets.  
Products for distribution are warehoused in four dist ribution centres with a combined storage capacity 
of 4,140,000 cases.  
  The selection, purchase and merchandising of products are determined by principles defined 
in the SAQ's Purchasing and Merchandising Policy.  
  Wines without a varietal indication or appella tion of origin designation that are bottled in 
Quebec may be sold in grocery stores, along with beers and light ciders.  Wines with a varietal 
indication or appellation of origin designation and spirits may only be sold in SAQ outlets.  
 
 Suppliers are responsible for promoting their pr oducts.  The services of a marketing agent are 
also used.  Market forces determine quantities to be imported.  A uniform mark-up, by category of 
product, is applied to the cost price of the produc ts, whether imported or domestic. Revenues are paid 
in the form of dividends to the sole shar eholder, Quebec's Minister of Finance. 
 
 
SASKATCHEWAN 
 
ACTS AND REGULATIONS 
 
- The Alcohol and Gaming Regulation Act, 1997 being Chapter A-18.011 of the Statutes of 
Saskatchewan, 1997 (February 1, 2003) as amende d by the Statutes of Saskatchewan, 1998, c.16;  
2000, c.36;  2002, c.27 and 42;  2003, c.15;  2004, c.67;  2005, c.3 and 21;  2007, c.10;  2008, c.8’ and 2010, c.25.  G/STR/N/14/CAN 
 Page 31 
 
 
  SUMMARY OF LIQUOR MARKETING PRACTICES 
 
 The Saskatchewan Liquor and Gaming Authorit y (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.   
 
The SLGA operates 79 retail outlets in Saskatch ewan.  In addition, the SLGA has granted 
authority to approximately 190 operators of private business establishments (agencies) in small rural 
communities to sell beverage alcohol products and to  two Specialty Wine Store Franchises, one each 
in Saskatoon and Regina.   
 
The rules governing access to points of sale apply equally to domestic (including in-province) 
and foreign suppliers.  Audited cost-of-service charg es are applied to all imported products distributed 
through the SLGA system.   
 
 
NORTHWEST TERRITORIES 
 ACTS AND REGULATIONS  
- Liquor Act , R.S.N.W.T. 1988, c. L-9 as amended by the Statues of the Northwest Territories 
1991-92, c.38;  1994. c.19;  1995, c.11;  1998, c.17. c.21;  2002, c.10, c.20. 
- Liquor Regulations , R.R.N.W.T. 1990, c.L-34 as amended by the Statues of the Northwest 
Territories 1992, R-087;  1993, R-027;  1995, R-035, R-036;  1996, R-048;  1997, R-052;  
2000, R-055;  2001, R-067;  2002, R-033, R-034, R-035, R-074;  2004, R-031.   
 SUMMARY OF LIQUOR MARKETING PRACTICES 
 
 The Northwest Territories Liquor Commission (N TLC) 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  generate a specific level of revenue from the 
sale of liquor.  Product cost, freight, container de posit, 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 1.5 litres of wine, 1.14 litres of spirits, or 8.52 litres of beer.  An import permit is 
required to import quantities greater than the allowable amounts.   
  Retail and warehousing operations are carried out by 7 private sector contractors and 1 private 
warehousing outlet operators who are under license from the NTLC. 
 G/STR/N/14/CAN 
Page 32 
 
 
  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 respons ible for the purchasing, warehousing and 
distribution of all alcoholic beverages as well as permiting and enforcement in Nunavut.   
 
 Alcohol is allowed to be purchased in 5 Nunavut communities.  Those living in the 
14 "restricted communities" are able to order al cohol products from warehouse distribution centres 
but require approval from an alcohol education co mmittee.  There are 6 "dry communities" where 
alcohol is completely banned.  Product price, fre ight and a refundable container deposit are included 
in the final price of any alcohol beverages.    
 The Nunavut Liquor Licensing Board is respons ible for the issuance, renewal, transfer, 
cancellation or suspension of any liquor licenses, as  well as, the enforcement of all liquor related 
regulations and restrictions.   
 
YUKON 
 
ACTS AND REGULATIONS 
 
- Liquor Act, Chapter 140 , R.S.Y. 2003, c.140.   
- Liquor Regulations Respecting the Sa le and Consumption of Liquor.   
 SUMMARY OF LIQUOR MARKETING PRACTICES 
  The Yukon Liquor Corporation (YLC) is manda ted with the purchase, distribution, and sale 
of liquor products in the Yukon.  The YLC opera tes 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 G overnment of Yukon.  It is responsible for the Liquor 
Act and Liquor Regulations .  In addition, the Corporation collect s and remits a 12 per cent tax on the 
retail value of all liquor products so ld in the Yukon, as required by the Liquor Tax Act .   
 
Domestic products are purchased from various locations across Canada.  All imported 
products are purchased through the British Columbia Liquor Distribution Branch, with the exception 
of special orders from customers which may be sour ced directly by the YLC if not available through 
the BC Liquor Distribution Branch.  There are no re strictions on imported liq uor products considered 
for purchase by the YLC in relation to category or origin.   
  The YLC applies standard pricing formulas to the supplier price and to the BC Liquor 
Distribution Branch price to the YLC, in determin ing the retail price.  The retail price includes the 
producer price, federal duty and excise tax, freight , YLC mark-up, refundable container deposit, and a 
non-refundable recycling surcharge, in addition to  the federal Goods & Services Tax and the 12% 
Yukon liquor tax. 
  
   G/STR/N/14/CAN
 Page 33TABLE I 
 
STATE TRADING:  PROVINCIAL AND TERRITORIAL LIQUOR CONTROL AUTHORITIES 
STATISTICAL INFORMATION, IMPORTS 
 
Description of the 
product Year1 Total 
quantity 
imported2 Quantity 
imported by 
STEs Per-unit import 
price3 Average representative 
domestic sales price4 Mark-
up National 
production5 
1  2 3 4 5 6 7 
  000’ 
Litre/LPA/KG 000’ litres CAD/Litre CAD/Litre  CAD'000 
Beer 
22.03 2010 340,728 328,795 1.84 4.38 … 4,402,487 
2011 321,096 320,920 1.74 4.50 … 4,355,607 
Wine6 
22.04 
22.05 
22.06 2010 350,060 261,506 5.00 15.25 … 897,326 
2011 358,379 274,128 5.29 15.37 … 952,685 
Spirits7 
22.08 2010 622,768 66,895 16.30 29.30 … 981,319 
2011 536,668 70,365 16.00 29.54 … 790,683 
 
Notes:   
“…” Indicates not applicable 
1. Data in columns 3 and 5 are for fiscal years ending on March 31 (2009-10 and 2010-11). All other data is for calendar years.  
2. Not all products referred to as beer, wine or spirits are measured in the same unit of measure.  For beer, data includes all  imports measured in litres.  For wine, data 
includes all imports measured in litres and in litres of pure al cohol (LPA), and kilograms (KG).  For spirits, data includes al l imports measured in LPA and KG.  Imports 
may include supplementary imports, including products imported for further processing and re-exported under the import for re-e xport program.   
3. Average import prices are calculated as the value of imports by STEs (the price in the country of origin) divided by the qua ntity of imports by STEs.   
4. Average representative domestic sales price is calculated as the value of domestic sales of imported products by the STEs (w ith the goods and services tax and container 
tax) divided by the volume of import sales by the STEs.   
5. Production figures are represented by the value of shipments,  and are calculated using the Nort h American Industrial Classif ication System rather  than HS codes.  
Quantity data is not available.  Data for wine is a Statistics Canada estimate. 
6. Wine includes vermouth, coolers and ciders (except Columns 3 and 5, which excludes vermouth).   
7. Spirits under column 3 may also include some types of coolers.   
 
Sources : 
Column 2, 4, 7: Statistics Canada. 
Column 3, 5: Statistics Canada, "Sales of Alcoholic Beverages of Liquor Authorities, Wineries and Breweries", Table 183-0015, C anadian Socio-Economic Information 
Management System (CANSIM).    
  G/STR/N/14/CAN 
Page 34 TABLE II 
 
STATE TRADING:  PROVINCIAL AND TERRITORIAL LIQUOR CONTROL AUTHORITIES 
STATISTICAL INFORMATION, EXPORTS 
 
Description of 
the product Year1 Total quantity 
exported2 Quantity 
exported by 
STEs3 Average 
Procurement 
price Average representative 
domestic sales price for 
sales of domestically-
produced alcohol Per-unit export 
Price National 
production4 
1  2 3 4 5 6 7 
   '000 
litres/LPA/KG '000 litres CAD/Litre CAD/Litre CAD/Litre/LPA/
KG CAD'000 
Beer 
22.03 2010 316,772 - ... 3.82 0.73 4,402,487 
2011 286,249 - … 3.90 0.71 4,355,607 
Wine5 
22.04 
22.05 
22.06 2010 10,364 - … 9.47 2.09 897,326 
2011 12,444 - … 979 1.97 952,685 
Spirits 
22.08 2010 622,768 - … 20.75 0.61 981,319 
2011 536,668 - … 21.35 0.68 790,683 
Notes: 
"-" indicates zero. "…" indicates not applicable. 
1. Data in column 5 is for fiscal years ending on March 31 (2009-10 and 2010-11). All other data is for calendar years. 
2. Does not include foreign produce re-exported.   
3. Provincial and Territorial liquor control authorities have no authority over the exportation of alcoholic beverages and no j urisdiction to export such products.   
4. Production figures are represented by the value of shipments, and are calculated using the Nort h American Industrial Classif ication System rather than HS coding.  
Quantity data is not available.  Data for wine is a Statistics Canada estimate.  
5. Wine includes vermouth, coolers and ciders (except Column 7, which excludes vermouth). 
 
Sources : 
Column 2, 6, 7: Statistics Canada. 
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).   
  
   G/STR/N/14/CAN
 Page 35TABLE III 
 
STATE TRADING:  PROVINCIAL AND TERRITORIAL LIQUOR CONTROL AUTHORITIES 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
 
Description of the 
product Year1 Domestic 
purchases by 
STEs   National production2 Domestic Sales of 
Domestically-Produced 
Alcohol, by STEs National Consumption3 
1  2 3 4 5 
     CAD'000  '000 litres  '000 litres 
Beer 
22.03 2010 … 4,402,487 2,022,611 2,351,406 
2011 … 4,355,607 1,968,008 2,288,928 
Wine4 
22.04 
22.05 
22.06 2010 … 897,326 194,952 456,458 
2011 … 952,685 195,860 469,988 
Spirits 
22.08 2010 … 981,319 142,445 209,340 
2011 … 790,683 139,438 209,803 
 
Notes: 
"…" not available.   1. Data in columns 4 and 5 are for fiscal years ending on March 31 (2009-10 and 2010-11). All other data is for calendar years.  
2. Production figures are represented by the value of shipments, and are calculated using the Nort h American Industrial Classif ication System rather than HS coding.  
Quantity data is not available.  Data for wine is an estimate.  
3. National consumption is represented by the total quantity of do mestic sales of imported and domestic products.  It does not include homemade beer and wine, wine and 
beer manufactured through brew-on-premises operations, all sales to Canadian residents in duty free shops and any other unrepor ted transactions.  Export sales are not 
included.   
4. Wine includes vermouth, coolers and ciders (except Columns 3 which excludes vermouth).   
 
Sources : 
Column 3: Statistics Canada. 
Column 4, 5: Statistics Canada, "Sales of Alcoholic Beverages of  Liquor Authorities, Wineries an d Breweries", Table 183-0015, C anadian Socio-Economic Information 
Management System (CANSIM). 
 
 
 
__________