June 19, 2017

June 16, 2017

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USDA Warns Canada-EU Trade Agreement Could Impact US Alcohol Beverage Exports

US exporters of alcohol beverages to Canada will soon face stiffer competition from their European rivals. The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) is expected to come into force by June 1, 2017, and Canadian duties on EU wines, beer and other alcoholic beverages will go to zero immediately. While tariffs on EU wine imports are already fairly low, products such as ciders will have their current duty rate reduced from 28 cents per liter to zero immediately. In fact, the European Commission is already extolling the expanded export opportunities for EU wine and spirit producers as a major selling point for CETA.

The US is expected to enter into formal North American Free Trade Agreement renegotiations with Canada and Mexico this summer. US alcohol beverage producers and trade associations should act now to ensure that the US negotiators protect US market access in Canada and otherwise promote their interests.

The USDA report and list of EU products that will receive duty-free treatment under CETA is available here.

© 2017 McDermott Will & Emery

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About this Author

Associate

Benjamin O. Kostrzewa is an associate in the law firm of McDermott Will & Emery LLP and is based in the Firm’s Washington, D.C. office. He counsels clients on international trade and related regulatory matters, including matters before the World Trade Organization dispute settlement body, subsidy allegations, import proceedings, market access issues, free trade agreements, countervailing duty proceedings, local content requirements and export restraints. He also works on trade and government relations matters in emerging markets, including sub-Saharan Africa, Cuba,...

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