HALE, Geoffrey E

Canadian federalism and the challenge of North American integration - Toronto : IPAC, Spring 2005

Canada’s growing economic integration within North America has not resulted in parallel trends towards greater political integration or in the general harmonization of policies and regulations, as was hoped by some observers and feared by others. This article explains the incremental adaptation of Canadian federalism to market-driven economic integration and assesses the factors that contribute to and constrain federal leadership and guidance of these processes. It outlines formal and informal processes for managing and reconciling overlapping jurisdictions – described as “complementary federalism” – that balance the pursuit of policy coherence and pressures for policy harmonization with the recognition and accommodation of regional interests. The author examines the development and limits of complementary federalism in three major policy fields – trade policy, taxation and the regulation of financial services, and capital markets – affected by trends towards North American economic integration