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By the 1940s, carried by the LCBO and the restrictions on direct- the brewers purchased the retail stores that sold to-consumer selling by breweries, TBS has a near- their beer, and the co-operative became known as monopoly of retail distribution in the province. [...] While differences in costs may It is paradoxical that the provisions of NAFTA, affect prices, arguably, smaller brewers should also which allowed for the maintenance of existing experience some of these costs, which then should discrimination in Ontario and BC in favour result in some differences in prices charged to of local wines, and the quasi-monopoly of the retail consumers and commercial est [...] A measure of whether a country the marketing of purely Canadian (VQA) wines, if has the climate, technology or resources to profit implemented, would reportedly be challenged under from the production of a particular good on world the terms of the NAFTA agreement by California markets is its "revealed comparative advantage," winegrowers.20 Thus, the strictures of the free trade defined as the shar [...] In addition to challenges has fluctuated around a fairly constant level of 80 posed by climate, and the relatively small amount percent (Figure 1).21 Despite a well-recognized of potential agricultural land in Canada for wine- improvement in the quality of Ontario (and producing grapes, the regulatory environment also Canadian) wines and despite the ability of some impedes the expansion of Canada' [...] Under this ruling - which was for a merger decision, but could apply in the case of A. Allow Grocery and Convenience Stores to The Beer Store - the efficiencies that The Beer Sell Beer and Wine Store is able to take advantage of could justify the continuation of a cost-efficient quasi-monopoly.