Federal-Provincial Relations

Canada's federal structure, by allowing multiple approaches to key policy challenges to be tried and compared within a single country, could be a significant competitive advantage for the country. But it is vital for all levels of government to work together more effectively.

• The principles of the Calgary Declaration, including the equal status of provinces and the importance to Canada of the unique character of Quebec, are widely recognized by Canadians and should eventually be enshrined in the Canadian Constitution.
• Meantime, much can be done within the Constitution to improve governance in Canada, primarily through more flexible and creative arrangements between governments. The Council of the Federation established by provincial and territorial leaders in 2003 has the potential to become an effective vehicle for federal-provincial and interprovincial collaboration on issues that are important to the future of the country as a whole.
• There is an urgent need for joint action by federal and provincial governments to reduce regulatory fragmentation, through harmonization and mutual recognition, and to remove the remaining and still significant barriers to trade and to labour mobility within Canada. Generally, responsibility for the development and enforcement of regulation should be delegated to the level of government that can most effectively do so in each particular area.