Ontario Premier Ford’s Ban on U.S. Booze: A Clear Violation of Trade Law

Doug Ford’s decision to strip American alcohol products from LCBO shelves and threaten global distiller Diageo is more than political theatre — it is a reckless abuse of provincial power that places Ontario, and by extension Canada, in breach of international law.

CUSMA: The Law of the Land

The Canada–United States–Mexico Agreement (CUSMA), which replaced NAFTA in 2020, is unambiguous.

• Article 2.3 (National Treatment): “Each Party shall accord national treatment to the goods of another Party in accordance with Article III of GATT 1994.” This means that U.S. goods cannot be treated worse than Canadian goods once they are admitted into the market.
• Article 2.4 (Market Access): “No Party shall adopt or maintain any prohibition or restriction on the importation of any good of another Party or on the exportation or sale for export of any good destined for the territory of another Party.” Banning U.S. alcohol from LCBO shelves squarely violates this obligation.
• Article 22.2 (State Enterprises): Even state-owned enterprises (like the LCBO) must operate on a commercial basis, not political whim, and cannot discriminate against goods from CUSMA partners.

There are exceptions in Article 32.1 for measures necessary to protect human, animal, or plant life or health — but Ford has not even pretended this ban is about safety. He openly admits it is political retaliation.

The Facts of Ford’s Move

• In March 2025, Ford ordered all American alcohol removed from LCBO’s wholesale catalogue. Because LCBO is the province’s exclusive wholesaler, this ban cut off restaurants, bars, and private retailers from restocking U.S. products.
• In September, he escalated the fight by threatening Diageo’s Canadian-made Crown Royal after the company announced a plant closure. Yet Crown Royal is distilled in Manitoba and Quebec, and 75% of it is exported to the U.S. — Ford’s threats target a Canadian success story.
• His justification? Pure politics. He cited Trump’s tariffs and claimed to defend Ontario jobs, even though the closures were part of a global restructuring affecting plants in the U.S., Europe, and elsewhere.

Why It’s Illegal

1. Discrimination (Art. 2.3): Singling out U.S.-origin goods and banning them is a textbook violation of CUSMA’s national treatment clause.
2. Import Restrictions (Art. 2.4): The LCBO ban is a prohibition on U.S. goods already meeting Canadian standards. That’s exactly what Article 2.4 forbids.
3. State Enterprise Abuse (Art. 22.2): The LCBO, as a Crown monopoly, cannot be used as a political weapon against foreign goods. Ford’s threats make clear it is being used precisely that way.
4. No Legal Exception (Art. 32.1): Health and safety exceptions don’t apply here — Ford has admitted this is political punishment.

The Consequences

Ford’s theatrics have real costs:

• For consumers and restaurants: Fewer choices, higher prices, and disruption in supply.
• For trade stability, Canada is now exposed to a CUSMA dispute. The United States could challenge Ontario’s ban and, if successful, impose retaliatory tariffs on Canadian exports — from whisky to lumber to autos.
• For Ontario’s reputation: Multinationals considering new facilities in Ontario will think twice if a premier can weaponize the LCBO against them on a whim.

The Bottom Line

Doug Ford accuses Donald Trump of being a bully. But what do you call a premier who uses state monopoly power to punish companies for business decisions he doesn’t like?

This is not “Ontario Open for Business.” It is Ontario Closed for Business. And it is almost certainly illegal under CUSMA’s Articles 2.3, 2.4, and 22.2.

Canada signed CUSMA to prevent exactly this kind of political vandalism. Ford’s stunt not only undermines the treaty — it invites retaliation that could devastate far more than Ontario’s liquor shelves.