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DECEMBER NEWS Deal May Pressure Canadian Vintners Once ratified, free trade deal will pit Canadian wineries against Europeans V ancouver, British Columbia—The B.C. is very details have yet to be finalized, but the announcement in October of expensive, a free trade deal between Canada mainly because and the 28-member European Union— of our land subject to ratification by participating countries, a process that could take up prices. Bill to two years—heralds changes for North —Rob Ingram Leigon America's wine industry. Canada's vintners are set to go head to winesandvines.com Producers such as head with one of the world's biggest wineLearn more: Rob Ingram, CEO producing regions. Most tariffs on wine Search keywords "Canadian tariff." of Terrabella Winerand spirits fell under the Wine and Spirits ies Ltd. and a partner in Collective WinAgreement (2003), meaning that consumers ery Consultants Inc., believe the complete will see little change in prices. According to elimination of tariffs will challenge Canaa summary of the new agreement, "the genda's vintners to become more competitive. eral rule is that goods from Canada or the Wine producers in B.C. face increasing EU should not be discriminated against." pressure from foreign imports, and that This means equal access to retail markets won't diminish with the further liberalizaeven though wineries in Canada will contion of trade. tinue to operate small off-site stores while "Free trade always has the effect of getEuropean wines will still be sold through WandV-trutan-halfpg-2013.pdf 1 3:23 PM government stores and private retailers. 10/9/12ting your costs down," Ingram said in a recent interview. Placed on a level playing field in a third market such as China, B.C. wines would sell for double the cost of European wines, he explained. So the industry needs to reduce costs in order to hold its own against Europe. Ingram, whose company owns Perseus Winery near Penticton, B.C., and acquired a second property near Kelowna, B.C., earlier this year for vineyard development, is seeking to bring successful individual wineries within a common fold to achieve the efficiencies they can't secure on their own. "You've got to get costs down," he said. B.C. is "very expensive, mainly because of our land prices—and high land prices doesn't necessarily mean better vineyards." With proper management, the quality of wine from those vineyards and the value proposition to consumers can be increased, he said. —Peter Mitham C M Y CM MY CY CMY K Win es & Vin es D EC EM B ER 20 13 17