In part, prior to free trade, the grapes that we were producing were not your typical Chardonnay, Merlot, or Cabernet Sauvignon that the world was used to. They were hybrid grapes that were more in line with the climate in Canada.
Also, the markup structure on foreign wines was significantly higher than it was on domestic wines. So with free trade, national treatment obligations required equivalent cost-of-service provisions to be put in place for both domestic and imported wines, which required us to invest in our vineyards and in new grapes. We had to do a pullout program, that is, to pull out all the hybrid grapes, and transplant those with Chardonnay, Rieslings, etc.
We can do that, and we can produce fantastic wines. However, the cost of production in Canada is significantly higher than it would be in Argentina. As well, the maximum size of the wine industry in Canada is limited by our geography and our climate, so the economies of scale aren't there.
In a nutshell, it does cost more to produce a litre of wine in Canada than it would in many other countries around the world.