Amending act	Amendment type	Subdivision concerned	Date of effect
22017A0114(01)	Modified by	article 2.2 point (b)	21/09/2017
22017A0114(01)	Modified by	article 4a	21/09/2017
22017A0114(01)	Modified by	article 4b	21/09/2017
22017A0114(01)	Modified by	article 4	21/09/2017
22017A0114(01)	Modified by	article 1 Text	21/09/2017

01989A0315(01) — EN — 21.09.2017 — 002.001

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►B	AGREEMENT between the European Economic Community and Canada concerning trade and commerce in alcoholic beverages (OJ L 071 15.3.1989, p. 42)

Amended by:

		Official Journal
		No	page	date
►M1	AGREEMENT between the European Community and Canada on trade in wines and spirit drinks	L 35	3	6.2.2004
►M2	COMPREHENSIVE ECONOMIC AND TRADE AGREEMENT (CETA) between Canada, of the one part, and the European Union and its Member States, of the other part	L 11	23	14.1.2017

▼B

AGREEMENT

between the European Economic Community and Canada concerning trade and commerce in alcoholic beverages

THE EUROPEAN ECONOMIC COMMUNITY AND

THE GOVERNMENT OF CANADA (hereinafter referred to as ‘the parties’),

TAKING INTO ACCOUNT their respective rights and obligations under the General Agreement on Tariffs and Trade with respect to the treatment of goods, and particularly alcoholic beverages, originating in the territory of the other party;

RECALLING the findings and conclusions of the GATT Panel on Import, Distribution and Sale of Alcoholic Drinks by Canadian Provincial Marketing Agencies;

DESIRING to resolve their differences over trade in the alcoholic beverage sector and to ensure respect for international legal obligations while acknowledging the temporary need for structural adjustment;

ENDEAVOURING to ensure that measures that are currently benefiting the sale of alcoholic beverages originating in the European Economic Community are not made more restrictive,

HAVE AGREED AS FOLLOWS:

Article 1

Definitions

In this Agreement:

‘ ►M1 base price ◄ ’ means the landed cost of alcoholic beverages, which may include the cost of service, incurred by Canadian competent authorities;

▼M1 —————

▼B

‘Canadian competent authority’ means any government or commission, board or other governmental agency that is authorized by law to control the sale of distilled spirits, wine and beer;

‘cost of service’ means the audited expenses incident to the purchase, storage, delivery to sales points, handling and sale of alcoholic beverages;

▼M1

‘cost of service differential’ means the amount by which the cost of service attributable to an imported product differs from the cost of service attributable to the like domestic product;

▼B

‘the Community’ means ‘the European Economic Community’;

‘delisting’ means a revocation of a listing;

‘distilled spirits’ means spirits, liqueurs and other spirituous beverages;

▼M1 —————

▼B

‘listing’ means a decision by a Canadian competent authority whether brands or varieties of distilled spirits, wines and beer may be sold in its outlets;

‘mark-up’ means the amount added to a base price and to applicable duties and taxes which results in the establishment of a retail price;

▼M1 —————

▼B

‘measure’ includes any law, regulation, procedure, requirement or practice;

▼M1 —————

▼B

‘product of Canada’ means distilled spirits, wine or beer respectively that is produced, bottled or packaged in Canada;

‘product of the Community’ means distilled spirits, wine or beer respectively that is produced in the customs territory of the Community;

▼M1

‘retail sale’ means the supply of alcoholic beverages to the final consumer or sale to a restaurant, bar, club or other licensed establishment;

▼M2

‘competent authority’ means a government or commission, board or other governmental agency of a Party that is authorised by law to control the sale of wines and distilled spirits.

▼M1

Article 2

National treatment and most-favoured-nation treatment

Canadian competent authorities shall accord national treatment and most-favoured-nation treatment to alcoholic beverages that are the product of the Community in accordance with the WTO Agreement. With respect to a province, national treatment and most-favoured-nation treatment shall mean treatment no less favourable than the most favourable treatment accorded by such province to any like goods that are the product of Canada or of any other third country.

By way of derogation from paragraph 1, Canadian competent authorities may maintain a measure within their respective jurisdictions provided it is implemented in a manner compatible with Canadian law:

(a)

limiting sales by a distillery or a winery on its premises to distilled spirits or wines produced there at prices no lower than those of the same distilled spirits or wines sold through outlets available for product of the Community;

▼M2

(b)

requiring off site private wine store outlets in Ontario and British Columbia to sell only wines produced by Canadian wineries. The number of these off site private wine store outlets authorised to sell only wines produced by Canadian wineries in these provinces shall not exceed 292 in Ontario and 60 in British Columbia;

▼M1

(c)

requiring that, with the existing exception of eight brand-sizes of wines bearing an appellation of origin, wine without appellation of origin and without indication of varietal names sold in grocery stores in Québec under applicable regulations, be bottled in Québec, provided that alternative outlets are provided in Québec for the sale of wine that is the product of the Community, whether or not such wine is bottled in Québec.

Article 3

Geographical indications

Canadian competent authorities shall not list or sell wines or spirit drinks that incorrectly bear a geographical indication protected under Canadian law.

Canadian competent authorities, in the exercise of any functions relating to the purchase and sale of wines, shall maintain their purchasing rules or policy in respect of geographical names of the Community so as to not market wines not originating in the place indicated by the name in question, where they did not do so on 1 November 2002.

▼M2

Article 4

Commercial Treatment

Competent authorities shall, in exercising their responsibilities for the purchase, distribution and retail sale of products of the other Party, adhere to the provisions of GATT Article XVII concerning State trading enterprises, in particular to make any such decisions solely in accordance with commercial considerations and shall afford the enterprises of the other Party adequate opportunity, in accordance with customary business practice, to compete for participation in such purchases.

Each Party shall take all possible measures to ensure that an enterprise that has been granted a monopoly in the trade and sale of wines and spirit drinks within its territory does not use its monopoly position to engage, either directly or indirectly, including through its dealings with its parent, subsidiaries or other enterprises with common ownership, in the sale of wine and spirit drinks in a market outside the territory where the enterprise has a monopoly position that causes an anti-competitive effect causing an appreciable restriction of competition in that market.

Article 4a

Pricing

Competent authorities of the Parties shall ensure that any mark-up, cost of service or other pricing measure is non-discriminatory, applies to all retail sales and is in conformity with Article 2.

A cost of service differential may be applied to products of the other Party only in so far as it is no greater than the additional costs necessarily associated with the marketing of products of the other Party, taking into account additional costs resulting from, inter alia, delivery methods and frequency.

Each Party shall ensure that a cost of service is not applied to a product of the other Party on the basis of the value of the product.

The cost of service differential shall be justified in line with standard accounting procedures by independent auditors on the basis of an audit completed on the request of the other Party within one year of the entry into force of the 2003 Wines and Spirit Drinks Agreement and thereafter on request of that Party at intervals of not less than four years. The audits shall be made available to either Party within one year of a request being made.

Competent authorities shall update cost of service differential charges, as required, to reflect the commitment made in subparagraph 4a(2).

Competent authorities shall make available applicable cost of service differential charges through publicly accessible means, such as their official website.

Competent authorities shall establish a contact point for questions and concerns originating from the other Party with respect to cost of service differential charges. A Party will respond to a request from the other Party in writing within 60 days of the receipt of the request.

▼M2

Article 4b

Blending Requirements

Neither Party may adopt or maintain any measure requiring that distilled spirits imported from the territory of the other Party for bottling be blended with any distilled spirits of the importing Party.

▼B

Article 5

Listing and delisting measures

Any measure of Canadian competent authorities relating to the listing or delisting of products of the Community shall be:

(a)

non-discriminatory;

(b)

based on normal commercial considerations;

(c)

transparent; and not create disguised barriers to trade; and be

(d)

published and made available to persons with an interest in the trade and listing or decisions to delist such products.

Canadian competent authorities shall, in respect of applications for listing of or decisions to delist products of the Community, provide:

(a)

prompt, written notification of decisions to applicants;

▼M1

(b)

in the case of a refusal to list or decision to delist, written reasons for those decisions;

▼B

(c)

administrative appeal procedures to ensure prompt, objective reviews of a decision to refuse to list or a decision to delist.

Article 6

Consultations

The parties shall monitor the implementation of the Agreement and shall consult, promptly at either's request, concerning any matter relating to its interpretation and implementation. This will include consultations on measures that are currently benefiting the sale of the product of the Community.

▼M1

Article 7

Final provisions

The Parties retain their rights and obligations under the WTO Agreement.

Nothing in this Agreement shall prejudice the rights of a supplier, his agent or other interested party under Canadian law.

In so far as any Canadian provincial authority does not exercise its authority to direct product selection and retail sales, it will not be covered by the provisions of this Agreement.

▼B

Article 8

Duration

This Agreement shall enter into force on signature.

This Agreement shall be of indefinite duration. ►M1 It may be terminated by either party on one year’s notice. ◄

▼M1

Should either Party terminate the Agreement between the European Community and Canada on trade in wines and spirit drinks, such termination shall also effect a simultaneous termination of the present Agreement.

▼B

Hecho en doble ejemplar en Bruselas, el veintiocho de febrero de mil novecientos ochenta y nueve.

Udfærdiget i to eksemplarer i Bruxelles den otteogtyvende februar nitten hundrede og niofirs.

Geschehen zu Brüssel am achtundzwanzigsten Februar neunzehnhundertneunundachtzig in zwei Urschriften.

Έγινε σε δύο αντίτυπα στις Βρυξέλλες, την εικοστή ογδόη Φεβρουαρίου χίλια εννιακόσια ογδόντα εννέα.

Done in duplicate at Brussels this twenty-eighth day of February in the year one thousand nine hundred and eighty-nine.

Fait en double exemplaire à Bruxelles, le vingt-huit février mille neuf cent quatre-vingt neuf.

Fatto in duplice esemplare a Bruxelles, il ventotto febbraio millenovecentottantanove.

Gedaan in tweevoud, te Brussel, op achtentwintig februari negentienhonderd negenenachtig.

Feito em duplo exemplar em Bruxelas, aos vinte e oito de Fevereiro de mil novecentos e oitenta e nove.

Por el Consejo de las Comunidades Europeas

For Rådet for De Europæiske Fællesskaber

Für den Rat der Europäischen Gemeinschaften

Για το Συμβούλιο των Ευρωπαϊκών Κοινοτήτων

For the Council of the European Communities

Pour le Conseil des Communautés européennes

Per il Consiglio delle Comunità europee

Pelo Conselho das Comunidades Europeias

signatory

Por el Gobierno de Canadá

For Canadas regering

Für die Regierung Canadas

Για την κυβέρνηση του Καναδά

For the Government of Canada

Pour le gouvernement du Canada

Per il governo del Canada

Voor de Regering van Canada

Pelo Governo do Canadá

▼M1 —————

▼B

EXCHANGES OF LETTERS

Letter No 1

Brussels, 28 February 1989

Sir,

I refer to the Agreement between Canada and the European Economic Community concerning Trade and Commerce in Alcoholic Beverages that was signed today.

I wish to confirm that the Prime Minister of Canada and the Premiers of the Provinces of Canada have agreed to initiate negotiations, involving the federal and provincial governments, concerning the reduction or elimination of interprovincial barriers to trade in alcoholic beverages, including beer.

Canada will bring measures on pricing of beer into conformity with its GATT obligations following a successful conclusion of this process.

Please accept, Sir, the assurance of my highest consideration.

For the Government of Canada

Letter No 2

Brussels, 28 February 1989

Sir,

I acknowledge receipt of your letter of today's date with regard to mark-up differentials on beer.

I note it is the intention of the Government of Canada to bring measures on pricing of beer into confirmity with its GATT obligations.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council of the European Communities

Letter No 1

Brussels, 28 February 1989

Sir,

In the context of the bilateral settlement of the disputes between Canada and the Community regarding the practices of provincial liquor boards in Canada which we have signed today, I hereby confirm the Community's willingness to enter into negotiations with Canada on the reciprocal supervision and protection of spirituous beverages appellations. I note that the Government of Canada is also willing to enter into parallel negotiations on reciprocal recognition of origin appelations for wine and that we agree to start those negotiations in the first quarter of 1989.

I would appreciate your confirmation of the Government of Canada's agreement with the terms of this letter.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council of the European Communities

Letter No 2

Brussels, 28 February 1989

Sir,

Thank you for your letter of today's date concerning the Community's willingness to enter into negotiations on the reciprocal supervision and protection of spirituous beverages appellations and on reciprocal recognition of original appellations for wine. I hereby confirm the Government of Canada's willingness to enter into the proposed negotiations.

Please accept, Sir, the assurance of my highest consideration.

For the Government of Canada

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