Thank you very much for the question.

Within our association, we had the opportunity to speak to some negotiators from the Quebec ministère de l'Économie et de l'Innovation. They told us that, in their negotiations, they were able to make the distinction between the various types of alcohol.

So, in talking to Australian officials who negotiated at the WTO, we learned that it was grape wine that was really targeted, a major source of aggravation for the Australians.

As we said earlier, the amount of mead we produce in Quebec is really limited, about 90,000 litres in total. However, this production is constantly increasing, and it is a growing industry.

So the fact that mead is currently classified in the same category as other types of alcohol, such as grape wine, is really a major burden for our types of businesses. What surprises us most is that the provincial negotiators were able to make this distinction and have the mark-up applied by the SAQ on meads, ciders, berry wines and maple wines removed as of December 1, 2023.

However, in the federal regulations, more specifically in Bill C-19, this distinction is not found in the exceptions section. As I said earlier, all costs are increasing, and this tax creates undue pressure on our production at a time when we are increasingly seeking to diversify and add value here in Canada. This distinction would be essential for our businesses to continue to grow.

In addition, this tax on all wines made from 100% Canadian ingredients has not been collected since 2006. Although there are some compensatory programs, we realize, when discussing with all of our colleagues at the national level, that the money that is put on the table would not even compensate for the sums that would have to be committed.

Our first demand is therefore that the exemption be maintained and that our products be included in the exceptions. If this is not possible, we would at least like to have access to compensatory programs that would allow our producers to be compensated at their fair value, especially since our products were not taxed before.

We would therefore like to obtain the committee's support so that the special nature of our businesses is recognized and their products are included in the exceptions.

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