AGLC pauses storage fees for Alberta vendors with U.S. liquor stuck in warehouse
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Alberta liquor agencies whose purchased U.S. products are stuck in a warehouse will not be charged storage fees for up to three months, Alberta Gaming, Liquor and Cannabis said in a bulletin all agents Thursday.
Last week, as part of its response to U.S. tariffs, the Alberta government banned imports of American alcohol through AGLC, the Crown corporation that regulates the province's alcohol industry, until further notice.
Christopher Walker, owner of Liquid Assets Imports in Calgary, which distributes alcohol to restaurants and retailers, told CBC News on Thursday that U.S. products already purchased by vendors are being held up in a warehouse.
The storage comes at a cost, on top of the revenue vendors can't earn while U.S. liquor imports are under a ban, Walker said.
"There are millions of dollars that have been seized by the government, of product that belongs to import agencies. It's not the government's money, it's our money," Walker told CBC News before the AGLC issued its bulletin.
"It's impossible to make a pivot, in order to reinvest money into other products from other countries, if we can't gain access to it."
Later Thursday, AGLC said it is pausing the storage charges for U.S. liquor products that have built up since March 6.
The pause will last until June 7, unless the province's restriction on U.S. purchases lifts before then.
"During this period, liquor agencies are encouraged to review their U.S. inventory in storage. There are options to remove products from the warehouse, including returns to the liquor supplier," said the bulletin from the AGLC's liquor services administration. CBC News has obtained a copy of the bulletin.
For months, U.S. President Donald Trump has been threatening stiff tariffs on Canadian imports — 10 per cent on energy products and 25 per cent on everything else.
WATCH | How Alberta is responding to U.S. tariffs:
How Alberta is responding to U.S. tariffs
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Trump paused the tariffs until April 2, but only for Canadian goods that comply with the Canada-United States-Mexico Agreement (CUSMA), the free trade agreement between the three North American neighbours.
Alberta Premier Danielle Smith announced the ban on imports of American liquor last week as part of the provincial response to Trump's tariff threats.
"We'll just have to drink a bit more B.C. wine and Alberta craft beer and spirits — and that's just fine with us," Smith said in announcing the measure at a March 5 news conference.
Liquor sales in Alberta are private. Companies buy product from AGLC, and the product is stored in a warehouse until it is delivered to those vendors and distributors. AGLC oversees importation, and pays suppliers for their products after the product is sold to retailers and other licensees.
WATCH | Why American booze is still on Alberta shelves:
Why American booze is still on Alberta shelves
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Some provinces have pulled American liquor off shelves in response to U.S. tariffs, but Alberta's stock is still on display despite a similar retaliatory measure. The province's system is set up differently than other jurisdictions with Alberta, Liquor Gaming and Cannabis and privately owned liquor stores. As CBC's Travis McEwan reports, consumers will still have the power to choose — for now.
AGLC and Connect Logistics Services, a company the Crown corporation contracts to warehouse and distribute alcohol products, are working to implement the change as soon as possible, the bulletin said.
Any charges businesses accumulated since March 6 will be credited, it added.
An AGLC spokesperson confirmed it sent the bulletin, but directed questions from CBC to Service Alberta and Red Tape Reduction, the ministry responsible for provincial Crown corporations.
In a statement, Brandon Aboultaif, press secretary to Service Alberta Minister Dale Nally, said Trump's latest executive order, which paused the tariffs another month, is unclear about which goods will be tariffed and "what legal forms and requirements will be needed to qualify."
Because of that, the province is moving ahead with its tariff response, Aboultaif said.
The government recognizes that liquor businesses are facing challenges, and is "continually assessing impacts and exploring solutions" to mitigate impacts on businesses, he said.
Aboultaif said affected liquor importers should stay in touch with AGLC. In the meantime, the government will deliver updates as the situation develops, he added.
Walker, meanwhile, described the current situation as "a great opportunity" to buy domestic products, or those made in countries other than the U.S.
He also said he believes the government should not get to dictate what can or cannot be bought.
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