A Government of Alberta program to help small craft brewers has been ruled non-trade compliant under the Agreement of Internal Trade — a setback to the province’s much-touted program to diversify the economy.
A three-person panel ruled the government must repeal or amend the Alberta Small Brewers Development Program (ASBD) within six months.
“The ASBD program provides a direct incentive to produce beer in Alberta, thereby putting producers of beer from other provinces at a competitive disadvantage in the market for beer in Alberta,” the decision states.
“For these reasons, we uphold the determination of the panel that the ASBD Program is inconsistent with Article 403 of the AIT.”
The ruling upholds a decision last summer which ruled in favour of Calgary beer importer Artisan Ales. The government appealed and the ruling was issued Monday.
Artisan Ales first laid the complaint in July 2016 in response to a government decision to apply lower markups to beers produced by smaller breweries in Alberta, Saskatchewan and British Columbia.
The government changed the policy that summer. All beers were given the same markup but Alberta craft brewers could apply for a rebate under as the Alberta Small Brewers Development Program.