Canada Drops Wine Barrel Tariff(2)

Pressure on Canadian cooper

Not everyone is happy with the move. Cal Craik at Canada's sole cooperage, Okanagan Barrel Works 2001 Ltd. in Oliver, B.C., said lifting the tariff will add extra pressure to his business at a time when many wineries, like Quails' Gate, are keeping tabs on expenses.

Craik makes barrels from French oak, staves of which enter Canada duty-free. While this has allowed him to stay competitive with the price of finished barrels imported from France (he sells some through the cooperage), Craik said that his local winery customers will now expect his prices to be lower this year.

"I don't like it," he said. "It's going to mean my customer is going to be looking at me to decrease my price by 3%." Craik typically sells French oak barrels for US$910 while American oak barrels sell for US$375.

Craik has voiced his concerns with Day, who also represents the Okanagan in Canada's parliament in addition to handling the international trade portfolio, but Day hasn't responded yet.

The good news is that even if he's got to drop his prices, demand for barrels remains strong. He recently received an order from California for 600 to 800 American oak barrels, which he said is "very good" for this time of year.