Honourable senators, I rise today to highlight an issue facing the domestic wine industry in Canada.

As you may know, the sector has grown tremendously over the last 15 years, but wine has been produced in Canada for over 200 years. It was in 1866 that the first commercial-scale winery opened in Canada, situated on Pelee Island in my home province of Ontario.

Like many other industries, the grape and wine industry has been deeply impacted by the ongoing COVID-19 pandemic. However, many of these small businesses are feeling pressure — and not just from the pandemic. In 2018, Australia requested consultations with Canada concerning measures maintained by the federal government and the provinces of British Columbia, Ontario, Quebec and Nova Scotia governing the sale of wine.

Australia is concerned with the excise tax exemption that supports our domestic producers, which was implemented in 2006. It is important to note that the exemption applies only to those products that are made from 100% Canadian grapes.

Through the Agriculture and Forestry Committee’s work on the value-added sector, it was clear that in order to further close the export gap between primary and value-added foods, and to take advantage of the international appetite for Canadian products, financial investment must be made to foster innovation; — for example, programs like the excise tax exemption.

According to Wine Growers Canada, the excise exemption has supported investment in more than 400 new wineries and 300 winery modernizations, stimulating 40 million litres of 100% Canadian wine sales growth from 2006 to 2018.

Last summer, the Canadian government reached an agreement with their Australian counterparts wherein the exemption will be formally withdrawn from our domestic wine producers by the end of June 2022.

I recently met with the Grape Growers of Ontario to discuss the industry’s next steps to ensure that small- and medium-sized operations are supported during this challenging time. They highlighted that the exemption has had an enormous impact on the sector’s ability to grow and compete against dominating international companies. In 2006, there were 86 VQA wineries in Ontario; today there are 183.

Honourable senators, I know many of us enjoy the products of our provinces’ fruitful endeavours. I am hopeful that we will do what we can for our craft producers, whether that is picking up a bottle from the domestic section to enjoy responsibly, visiting a local winery when it is safe to do so or speaking up in support from your seat in the chamber. We must work together to ensure that trade policy doesn’t come at the expense of good domestic policy that supports our local industry.

At this time, I would like to figuratively raise a glass to those in the Grape Growers of Ontario who are working on a proposal to address these concerns, and are collaborating with the industry and government to ensure that a trade-compliant and trade-safe resolution is reached, which will in turn support craft producers across the country who are persevering during this challenging time. Thank you. Meegwetch.