Interprovincial trade barriers keep small businesses bottled up: CFIB

Canada’s small and craft alcohol producers face major roadblocks when trying to sell alcohol across provincial borders despite recent agreements meant to ease trade restrictions, according to a new report from the Canadian Federation of Independent Business (CFIB).

The Nov. 10 report says outdated rules and complicated processes block Canadian producers from reaching new markets, including neighbouring provinces. It says these rules drive up costs, limit consumer choice, and stifle the growth of small producers.

“When American liquor products were pulled from store shelves across Canada in response to U.S. tariffs, it opened space that could, and should, have been filled by Canadian producers,” said Keyli Loeppky, CFIB’s director of interprovincial affairs. “Instead, rigid interprovincial rules and excessive red tape continue to hinder small alcohol producers from expanding beyond their home provinces, leaving significant growth potential untapped.”

Canada’s alcohol industry comprises 1,500 breweries, wineries, and distilleries.

CFIB urges provinces to work together to fully implement the alcohol trade-related commitments already made under the Canadian Free Trade Agreement (CFTA) and recent MoUs on direct-to-consumer alcohol sales, including a strategic rollout plan for May 2026. It is asking governments to:

• expand government commitments on mutual recognition agreements to include provincial rules, regulations and requirements on alcohol;
• increase transparency on listing processes and mark-up structures;
• establish a cross-provincial working group dedicated to alcohol trade reform; and
• provide clear, accessible guidance to small businesses on interprovincial requirements.