CANADA - MEASURES GOVERNING THE SALE OF WINE IN GROCERY STORES (SECOND COMPLAINT) REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE UNITED STATES
Document: REQUEST FOR THE ESTABLISHMENT OF A PANEL
Date: 29 May 2018
Document codes: WT/DS531/7
Complainant: U.S.
Respondent: Canada
Third parties: Argentina, Australia, Chile, China, EU, India, Israel, South Korea, Mexico, New Zealand, Russia, South Africa, Taiwan
Dispute stage: Panel
Agreements cited: Art. III:4  GATT 1994

CANADA - MEASURES GOVERNING THE SALE OF WINE IN GROCERY
STORES (SECOND COMPLAINT)
REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE UNITED STATES
The following communication, dated 25 May 2018, from the delegation of the United States to the
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.

The United States Government requested consultations with the Government of Canada pursuant
to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes and Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT 1994"),
with regard to measures maintained by the Canadian province of British Columbia ( "BC")
governing the sale of win e in grocery stores. 1 The United States and Canada held consultations,
but unfortunately, these consultations were unsuccessful in resolving this dispute.
BC wine measures provide advantages to BC wine through the granting of exclusi ve access to a
retail channel of selling wine on grocery store shelves. The BC wine measures discriminate against
imported wine by allowing only BC wine to be sold on regular grocery store shelves while imported
wine may be sold in grocery stores only thr ough a so -called "store within a store. " These
measures are reflected in legal instruments that include, but are not limited to, the following,
operating separately or collectively:
1. Policy Directive No. 15-01, issued by the BC Liquor Control and Licensing Branch,
re: Liquor Policy Review Recommendations #19 and 20: Phased-in
Implementation of Liquor in Grocery Stores, dated February 26, 2015;
2. BC Liquor Control and Licensing Act ([SBC 2015] Chapter 19), succeeding the BC
Liquor Control and Licensing Act ([RSBC 1996] Chapter 267);
3. B.C. Reg. 42/2015, deposited March 17, 2015, amending BC Liquor Control and
Licensing Regulation, B.C. Reg. 244/2002; Order in Council 121/2015, approved
and ordered March 16, 2015; British Columbia Gazette, Part II, Volume 58, No. 6
(March 24, 2015);
4. BC Liquor Control and Licensing Regulation, B.C. Reg. 241/2016, deposited
October 20, 2016, effective January 23, 2017, succeeding BC Liquor Control and
Licensing Regulation, B.C. Reg. 244/2002; and
5. "Wine Store Terms and Conditions," BC Liquor Control and Licensing Branch
publication, updated August 2017;
as well as any amendments or successor, replacement, or implementing measures.
The United States considers that these measures are inconsistent with Canada 's obligations under
Article III:4 of the GATT 1994 because they are laws, regulations, or requirements affecting the
internal sale, offering for sale, purchase, or distribution of wine and fail to accord products

1 WT/DS531/1.

imported into Canada treatment no less favorable than that accorded to like products of Canadian
origin.
In addition, Canada 's measures appear to nullify or impair the benefits accruing to the United
States directly or indirectly under the cited agreements.
Accordingly, the United States respectfully requests pursuant to Article 6 of the DSU that the
Dispute Settlement Body establish a panel to examine this matter, with the standard terms of
reference as set out in Article 7.1 of the DSU.