INITIATIVES
Wine Sector
Support Program
The Wine Sector Support Program (WSSP) is designed to help the Canadian wine sector improve our competitiveness and adapt to ongoing and emerging challenges. Funding is in place for the program from FY22/23 to FY26/27. This signifies Government of Canada’s considerable commitment to fostering incentives for investment, innovation, and overall growth within Canada’s wine industry, as we face adverse climate events, surging inflation, and sustained and intense competition from highly-subsidized and lower-taxed imported wines.
What is WSSP?
Imports represent 70% of total wine sales in Canada and 92% of wines enter Canada import duty free. Foreign wineries receive billions of dollars of support from their governments and face some of the lowest taxes in the world.
The Canadian wine sector supports a value chain of businesses that contribute over $11.6 billion annually to the Canadian economy. Given this economic impact, in 2020 the federal government committed to ensuring the long-term success of grape growers and winemakers across Canada with a program to incentivize investment, growth and quality enhancement in Canada’s innovative wine sector.
In June 2022, following WGC’s extensive advocacy efforts, a two-year federal Wine Sector Support Program (WSSP) was announced. The two-year pilot sought to ensure the program’s effectiveness, fairness and trade compliance. The WSSP has proven to be a tremendous success and, as such, was extended in March 2024, in order for Canadian wineries to innovate and compete against highly-subsidized and lower-taxed imports that comprise over 70% of wine sales in Canada.
WSSP is neither a subsidy nor an income stabilization program, it is an investment in economic growth with a positive return on investment for Canada.
For every dollar of net WSSP funding being invested in the Canadian wine industry, approximately $6.20 are created in transactions across the Canadian economy.
This means more wages paid to Canadian workers for those additional jobs; more demand for Canadian farmers; more volume of wines using Canadian fruit to be sold through retailers and restaurants; more tourism and more demand for services including trucking, vineyard management, suppliers, etc.
This investment serves as a foundation for Canadian wineries, investors, and associated businesses, guiding crucial decisions, particularly in the face of challenges like vine replanting.
This initiative will position the Canadian wine industry well for long-term success. As an industry which generates significant economic activity in the valuable chain of businesses surrounding wine production, including for grape growers, in culinary and wine tourism, retail, entertainment and culture, WSSP will help us grow our already-strong $11.6 billion in annual economic impact.