The United States in January last year initiated a World Trade Organisation case against the cordoning off of imported wines in grocery stores in the Canadian province of British Columbia.
NZ joined subsequent talks that failed to resolve the dispute and will now take part in an upcoming court case as a third party.
NZ Winegrowers lawyer Jeffrey Clarke said the industry opposes the restrictions both in principal and because they are likely to cost exporters tens of millions of dollars a year in lost sales.
“It is important to pull Canada up because as a WTO signatory we do not want to let them get away with this.
“We do not want to see this as the start of conduct that is allowed to happen.”
While the industry had pushed the Government to join the US as a co-litigant it is satisfied its views will be represented as a third party.
“We have said that is fine, we are happy to provide you with all the evidence that the Australians and the Americans need.
“And we are doing that.”
Earlier this year Australia sought talks with Canada to resolve a wider range of restrictions on imported wine as a precursor to a possible second WTO case.
NZ is also part of those consultations.
It is one of a dozen countries joining as third parties the case being brought by the US against Canada.
Chapman Tripp trade law consultant Tracey Epps said initiating a WTO case or joining as a co-litigant is more expensive than being a third party to a complaint.
“Typically, countries will join as third parties when they have a systematic interest in how the provisions at issue are interpreted or a general interest in seeing a country bring its measures into line but will look to become a co-complainant if, in addition, they have a strong commercial or political interest in the outcome.”
Epps said fresh perspectives are often brought by third parties while at other times they simply reinforce evidence presented by the litigants.
Canada is the NZ wine industry’s fourth largest market with $124m of sales last year.
NZ has been involved in seven WTO lawsuits as a principal complainant and a third party in 40 other cases.
