The Australian government has sent a shot across the bow of Canada as it launches a trade fight over wine exports.
The government has filed a formal complaint with the World Trade Organisation in protest at the way Canada applies rules over the sale of Australian wine.
It follows on from representations from local winemakers who are aggrieved at what is described as "protectionist" measures.
Imported wines in Canada sold in supermarkets are pushed into a "store within a store" with separate shelves and cash registers, while Canadian wines can be kept on regular grocery store shelves.
Trade Minister Steve Ciobo says Australia is seeing its share in the Canadian market erode. Source: AAP
Australia says so far no Canadian supermarkets have set up a "store with a store" because of the onerous requirements.
Trade Minister Steve Ciobo says Australia is seeing its share in the Canadian market erode.
"Potentially this could cost Australian jobs," he told ABC radio on Wednesday.
"I want to make sure we're on the front foot about protecting Australia's interests."
Mr Ciobo denied the action was connected to Canadian Prime Minister Justin Trudeau's snub of other world leaders during talks on a new Trans-Pacific Partnership deal at APEC last November.
"These are unrelated events," he said.
The Winemakers' Federation of Australia welcomed the government's action against Canada, where wine sales are controlled by provincial liquor boards.
"In recent years, the liquor boards have introduced a number of measures that discriminate in favour of locally produced wine," the federation's chief executive Tony Battaglene said in a statement.
"We respect the Canadian wine industry, but we are seeking a level playing field to ensure we can maximise our opportunities in this key market."
As well as the "store within a store" rules, there are also extra mark-ups on imported wine and separate distribution channels.
Australian wine sales to Canada are valued at nearly $200 million.
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