The British Columbia wine sector and the Canada-U.S. Free Trade Agreement: strengths and opportunities

This article describes the structural changes in production and demand of the British Columbia wine market since the signing of the Free Trade Agreement (FTA) in 1988. Along with the FTA and reduced level of government protection, the product mix and structure of domestic wineries have changed substantially since 1988. Some results found that larger acreages are devoted to "Vitis Vinifera" varieties, and the production of premium-quality wine has emerged as a significant product manufactured mainly by small to medium sized wineries. One of the challenges facing the wine/grape industry is to develop a financially viable price competitive wine sector in an environment characterized by high taxation rates, low grape yields, large establishment costs, and challenging climatic conditions. Strategies to enhance the competitive position of the wine industry are identified.