British Columbia extends exemption for WA grape growers

In 2024, Washington grape growers took advantage of a weather-induced shortage of grapes in British Columbia and a tax-free import exemption to send a sizable portion of their harvest north of the border.

That exemption, known as the 2024 Vintage Replacement Program, was extended two weeks ago by the British Columbia Liquor Distribution Branch, wine industry officials reported.

The waiver of the usual import fee should help Washington grape growers and bulk wine producers this fall – although the decision came much later in this season’s growing and harvesting process, said Sara Higgins, executive director of the Washington Winegrowers Association.

“The announcement comes well into harvest; some growers won’t be able to avail themselves of the opportunity, but we still see this move as a win-win on both sides of the border,” Higgins said.

Heather Bradshaw, communications director of the Washington State Wine Commission, also noted the extension of the import tax waiver for grapes, as British Columbia vineyards continue to be impacted by the hard freeze in January 2024 in the Okanagan-Similkameen region. The freeze led to the loss of 90% of the region’s grape production, the British Columbia government reported.

While statewide production of wine grapes is expected to be down a bit from the 150,000 tons harvested last fall, winegrowers are expecting high quality in their vineyards, said Heather Bradshaw, communications director of the Washington State Wine Commission.That opened up opportunities for Yakima Valley and other Washington vineyards. Marcus Miller, president of Airfield Estates Winery in Prosser, told the Seattle Times that 10 to 15% of his 2024 harvest in the Yakima Valley – about $300,000 to $400,000 worth of grapes – went to British Columbia last year.

“We hope (the tax-free import extension) provides good opportunity for both wineries in B.C. and vineyards in Washington,” Bradshaw told the Herald-Republic.

Other news regarding international trade is not so positive, Bradshaw and Higgins said.

“Tariffs and potential retaliatory tariffs remain an impediment, not just for wine sales, but also related to the cost of wine packaging supplies,” Higgins said.

Bradshaw reported that tariffs and the uncertainty surrounding export sales of grapes and wine have already had “a major impact” on vineyards’ international business.