Newfoundland Lone Holdout on Alcohol Sales Deal

Province hesitates to join interprovincial agreement

Despite nine provinces and one territory agreeing to allow direct alcohol sales across provincial borders by next spring, Newfoundland and Labrador remains the only province not on board, sparking debate about the delay and its potential impact.

Call for Decision

The Canadian Federation of Independent Business is urging the provincial government to decide whether it will join other provinces in removing obstacles to interprovincial alcohol sales. The holdout status raises questions about the province’s commitment to reducing internal trade barriers.

Government Response

The provincial government stated it is collaborating with other provinces to reduce internal trade barriers. However, officials say they require more time to fully understand the potential impact of such an agreement on local industries and jobs within Newfoundland and Labrador.

Expert Opinion

Louis-Phillipe Gautier believes government should consult with local companies to hear their perspectives, but he also suggests that the province has already had ample time to consider the issue.

Gautier noted that back in March, the finance minister mentioned the need for an in-depth examination of the agreement’s effects.

According to Gautier, government should have had the time to do that and been able to come to the table with the other provinces and territories.

As of 2023, the alcoholic beverage industry generated $244.7 billion in economic activity in the United States alone, underscoring the significant economic stakes involved in alcohol sales and distribution (Beer Institute).