Thank you, Mr. Chair.
What a surprise! After beer and spirits, we're now targeting wine. We want to impose on wine the same increases according to the cumulative principle. I won't repeat everything I said about the two other alcohol industry sectors. However, I want to specify that both the people from the Canadian Vintners Association and wine producers clearly told us they would face challenges in terms of the WTO's trade rules. I want to note that this isn't my opinion, but their opinion.
Indeed, 100% Canadian wines are exempt from excise duties. The other wines that will be sold in Canada, including those from our economic partners, will be subject to these excise duties. The duties will increase each year based on inflation. The increases will be indefinite. We don't know when they'll stop. These people clearly told us that our rule exempting 100% Canadian wines from excise duties would be challenged by our international competitors and by other businesses that sell wine in Canada.
As a result, I implore my colleagues to act wisely and to take a clear stand on this issue by opposing clause 50. Obviously, according to the witnesses, this clause will result in challenges before trade tribunals. An international tribunal may reject the rule exempting 100% Canadian wines and may consider that the rule should no longer exist. This could harm our industry, in this case the wine industry, and specifically Canadian wine.
I implore my colleagues to act wisely and responsibly to avoid having the Canadian wine industry face possible legal challenges. If they don't do it for beer and spirits, I hope they'll do it for wine.