The most prominent pro-business organization in the world is getting into the issue regarding the future of beer sales in Ontario.
The U.S. Chamber of Commerce, based in Washington D.C., has fired off a letter to Premier Doug Ford, urging his government to reconsider breaking the current contract with The Beer Store and expanding efforts to sell beer and wine in more supermarkets and corner stores across the province.
The Globe and Mail has reported that the chamber believes throwing the contract in the trash can will send the wrong message to American investors.
"Our strong concern is that terminating an existing contract, and doing so without compensation...risks sending a negative signal to the U.S. and other international investors about the business and investment climate in Ontario," the letter read. "This, in turn, could undermine the constructive work you and your government have done and the case that the Ford government has made that the province is 'open for business'."
The government introduced the Bringing Choice and Fairness to the People Act last week in the Ontario Legislature. If approved, it would allow the province to tear up its existing contracts based on a report indicating that the current agreements do nothing but provide favouritism to the major beer companies. At the same time, the province would expand beer and wine sales to be sold in big-box retailers, additional grocery stores, and mom-and-pop corner stores.
The chamber also warned the Ford government in its letter that the plan does nothing but raise legal questions, and urged the premier to make sure all stakeholders have a say on the matter.
"The U.S. Chamber... believes there are few factors more critical to investment and economic growth than the legal certainty and predictability fostered by the respect for the rule of law," the letter read.
The plan to expand beer sales and terminate the existing Beer Store contracts has brought strong reaction on both sides of the issue. The Canadian Federation of Independent Business, a non-profit group that advocates for small businesses across the province, said the plan opens a new chapter for Ontario’s beer industry. However, United Food and Commercial Workers Canada (UFCW) Local 12-R-24, which represents Beer Store employees, warned about the potential of job losses.
The Beer Store's president, Ted Moroz, has vowed to fight the legislation.