Women-Owned Ontario Distillery’s National Struggles Underscore Need for Economic Reform

LONDON, ON — Business – In 2024, Paradigm Spirits made history by capturing Whisky of the Year at the Canadian Whisky Awards, beating out nearly 200 competitors with their standout expression—a 19-year-aged whisky distilled from Canadian corn, matured in American oak, and finished with a touch of Spanish sherry. One judge called it simply “remarkable.”

For Irma Joeveer, co-founder of the women-owned distillery operating out of a repurposed Kellogg’s cereal plant in London, Ontario, it was a dream moment. Demand for the award-winning spirit soared from coast to coast. But there was a major hitch: Canada’s internal trade rules.

Despite the national acclaim, Paradigm Spirits couldn’t legally sell its whisky directly to customers outside Ontario. In fact, it was easier to export whisky to Singapore than to Saskatchewan. Joeveer described the situation as “frustrating but not surprising.”

A Long-Standing Trade Problem

Canada’s patchwork of provincial rules, federal regulations, and licensing requirements creates significant barriers for businesses trying to sell across provincial lines. From alcohol and agriculture to construction materials and professional credentials, inconsistent standards have long been a burden on interprovincial commerce.

Efforts to break down these barriers have historically moved at a glacial pace. But a turning point may have come in the aftermath of U.S. tariffs on Canadian goods under former President Donald Trump. That economic shock pushed Canadian leaders to re-evaluate the country’s reliance on international trade and turn their focus inward.

“We can give ourselves far more than the Americans can ever take away,” said Prime Minister Mark Carney following his April 2025 election victory.

Policy Momentum Builds

The federal government has already scrapped some interprovincial restrictions, and by May 2026, nearly all provinces and territories are expected to allow direct-to-consumer alcohol sales across borders. Joeveer called the policy shift “very encouraging” and a step toward true economic federation.

Economist Trevor Tombe from the University of Calgary sees the momentum building. “For the first time, governments are taking real action instead of tiptoeing around the issue,” he said. While the reforms may not fully shield Canada from external economic shocks, he says they are nonetheless smart and overdue moves.

The International Monetary Fund has estimated that removing internal trade barriers could increase Canada’s GDP per capita by nearly 4%, although those gains could take years to materialize.

A National Issue That Goes Beyond Booze

Internal trade accounts for roughly 18% of Canada’s GDP, a figure that’s been stagnant for decades, even as global trade has surged to represent nearly two-thirds of the economy.

The issue extends well beyond alcohol. Businesses face a maze of conflicting rules, from food inspection protocols and container standards to bilingual labelling laws. Construction firms have reported different toilet seat standards from one province to the next. Manufacturers often produce multiple product variants just to meet local requirements.

Some barriers stem from Canada’s federal structure, which grants provinces significant legislative autonomy. That autonomy can be a roadblock to broad economic integration. A landmark Supreme Court case in 2018 involving Gérard Comeau, fined for bringing cheaper alcohol from Quebec to New Brunswick, underscored that reality. The court ruled that Section 121 of the Constitution—which promises free trade among provinces—does not override provincial authority.

Resistance Remains in Some Quarters

Reform hasn’t been universally welcomed. Critics argue that standardizing rules across provinces could lead to a “race to the bottom” in areas like health and safety.

In Nova Scotia, a bill to automatically recognize professional licenses from other provinces met strong pushback from architects, veterinarians, and interior designers, who raised concerns over public safety. The bill was amended after outcry.

In Newfoundland and Labrador, beer industry unions argued that direct-to-consumer alcohol sales could jeopardize local jobs, prompting the province to opt out of the 2026 alcohol agreement.

Business Community Stays Hopeful

Despite ongoing challenges, industry leaders remain optimistic. Jeff Guignard of Wine Growers British Columbia points out the absurdity of current trade restrictions:

“It’s easier and cheaper to ship wine from B.C. to Texas than to Alberta,” he said. “It’s obvious we need to fix that.”

As more provinces commit to liberalizing interprovincial trade and easing direct-to-consumer restrictions, Canada may finally be on the verge of unlocking its domestic market potential—something businesses like Paradigm Spirits have long awaited.