Supreme Court of Canada Ruling in 'Beer Case' Keeps Supply/Management Programs Intact

Canadian provinces and territories have a constitutional right to restrict imports of goods from each other, provided those restrictions are not primarily put in place to restrict trade, according to a Supreme Court of Canada ruling.The ruling in the so-called "beer case" not only prevents easier access for many Canadians who were hoping to gain easier access to cheaper or in-demand products from other provinces, but it also appears to keep the supply management programs for dairy and others intact. The case focused on the interpretation of section 121 of the Constitution Act. That states that products from any province "shall... be admitted free into each of the other provinces." But a Supreme Court of Canada ruling in 1921 found that provision only meant the products had to be free from tariffs, but that limits on quantity could still apply.The court also mentioned the supply management programs that some feared could be removed if the court ruled in favor of the New Brunswick resident. Specifically, the court said that if it was determined that section 121 of the Constitution Act applied in this case, "Agricultural supply management schemes, public health driven prohibitions, environmental controls, and innumerable comparable regulatory measures that incidentally impede the passage of goods crossing provincial borders may be invalid."