Federal government announces $101 million in wine industry funding
The Canadian wine industry is getting a federal funding boost even as winemakers are preparing to deal with the loss of an excise tax exemption.
Niagara Centre MP Vance Badawey was in Niagara-On-The-Lake yesterday to announce $101 million for the industry over two years starting next year.
The money will be used to develop a program for the wine sector supporting domestic wineries in adapting to ongoing and emerging challenges.
The announcement comes as winemakers are facing a 50 cents per bottle hit following an Australian World Trade Organization challenge of an excise tax exemption.
The excise tax exemption was first announced in 2006 to help spur on local producers, but Australia challenged the boon and Canada agreed to repeal the tax exemption as of the end of June next year.
The Australians had argued the exemption gave Canadian wine makers an unfair at-home advantage over the Aussies.