Canada DTC deal opens up alcohol market
Nine Canadian provinces have signed an agreement to allow direct-to-consumer (DTC) alcohol sales, nearly two months after the initial deadline.
The new agreement comes several months after the provinces set an initial deadline of the end of May for cross-border DTC sales. Ontario and 10 other jurisdictions signed a memorandum of understanding in July 2025 regarding the move.
The premiers of Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador have signed the new DTC deal.
Quebec and Yukon are anticipated to sign at a later date, Nova Scotia’s government noted.
Co-led by Ontario and Saskatchewan, the agreement aims to ‘build a more open and united Canadian economy by removing a major trade barrier’.
The move comes just days after US president Donald Trump announced plans to impose a 50% tariff on Canadian alcoholic products from August. The tariff was introduced in retaliation for Canada’s removal of US-made alcohol from the shelves of provincial liquor boards in all but two provinces in March 2025.
“In the face of president Trump’s latest tariffs, it’s more important than ever that team Canada work together to build a more united, resilient and self-reliant Canadian economy,” said Ontario premier Doug Ford.
“Today’s agreement will open new markets and new choice and convenience for producers and customers in Ontario and across Canada, while helping unlock more than CA$200 billion (US$142bn) in untapped economic opportunity that is currently being held back by internal trade barriers.”
The agreement also follows a similar pact signed in March between Ontario and Nova Scotia, which allowed alcohol sales between the two provinces.
Under the new Canadian agreement, producers across the participating provinces can now seek authorisation from their local liquor board to provide consumers with direct access to buy alcohol through online merchants for DTC shipping outside of their home market.
British Columbia aims to implement DTC alcohol sales by February 2027.
Nova Scotia recently relaxed its laws to allow local producers to cross-sell alcohol and set up secondary retail stores in the coming months.
CFIB to ‘closely monitor’ DTC deal
The Canadian Federation of Independent Business (CFIB), the country’s largest association for small- and medium-sized businesses, welcomed the move.
The CFIB previously criticised the Canadian governments in May for their ‘lack of transparency and progress’ regarding the DTC deal.
“Canada’s independent wineries, breweries, cideries, and distilleries have waited a long time to see direct-to-consumer alcohol shipping finally become a reality,” said CFIB president Dan Kelly.
“Allowing small producers to ship directly to consumers across provincial borders will help them reach new customers, grow their businesses, and give Canadians access to greater choice. It is a practical step toward reducing unnecessary interprovincial trade barriers and a clear signal that governments are committed to strengthening Canada’s internal market.”
The CFIB also intends to “closely monitor” how the deal is implemented to ensure there are no “unnecessary licensing, authorisations or registration requirements” that could lead to extra costs and complexity for businesses.
Kelly also praised Manitoba, New Brunswick, and Saskatchewan for their “straightforward, low-burden approach” to DTC sales.
He called on the governments to include alcohol under the Canadian Mutual Recognition Agreement, which would allow nationwide sales “without duplicative testing, paperwork or regulatory requirements” and “create a truly open domestic market for Canadian alcohol”.
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