The marketing and sale of beer and alcoholic beverages in Canada are governed by Canadian provincial marketing agencies or “liquor boards.” In most of the ten Canadian provinces, these liquor boards not only regulate the marketing of domestic beer in the province, but serve as import monopolies. They also warehouse, distribute, and retail imported beer. Canada imposed restrictions on the number of locations at which imported beer could be sold; authorization from the liquor board was needed to sell a brand of beer in the province; and higher markups were required on the price of foreign beer than on domestic beer sold by the liquor boards. Do the regulations violate the nondiscrimination provisions of GATT? May Canada use state trading monopolies to regulate imports of this kind? Are Canada’s provisions valid public health regulations or illegal discrimination? If trade statistics showed that foreign beer sales have actually increased, could an exporting country’s rights under GATT still be subject to “nullification and impairment”? Would Section 301 apply to this case? See 56 FR 60128 (1991). See also GATT Dispute Settlement Panel Report: Canada Import, Distribution and Sale of Alcoholic Drinks by Canadian Provincial Marketing Agencies (1988).