News from the 2018 summer meeting of the Council of the Federation – highlights

9 août 2018

The Council of the Federation brings together the Premiers of all the provinces and territories. Its objectives are to promote cooperation between the provinces and territories and provincial leadership, especially in relations with the federal government, in order to meet the challenges facing the federation.

At the last summer meeting of the Council of the Federation, which took place from July 18 to July 20 in Saint Andrews, New Brunswick, the Premiers of the provinces and territories discussed Canada-US relations and current priorities in the areas of interprovincial trade, access to international markets, economic growth, healthcare and the legalization of cannabis. The Premier of Québec also met with some of his provincial counterparts in bilateral and multilateral meetings.

A focus on interprovincial trade to ensure economic prosperity

Internal trade was a central concern at the last meeting of the Council of the Federation. The Premiers agreed to  take immediate and meaningful action, in particular to eliminate regulatory barriers in the sectors of transport, occupational health and safety, agriculture, and business registration. In a similar spirit, the provinces and territories agreed in principle to reduce trade barriers for alcohol.

The provinces and territories have made a commitment to cooperate on an ongoing basis to ensure the active promotion of the  Canadian Free Trade Agreement, a topic previously addressed in an open letter from the Minister responsible for Canadian Relations and the Canadian Francophonie, published on July 1.  

Market diversification and trade with the US

The  Premiers indicated their clear support for efforts to increase and diversify international trade through the signing of trade agreements.

Québec's Premier and his provincial and territorial counterparts expressed their intention of playing an active and significant role in trade negotiations to ensure that the interests of the provinces and territories are fully represented and taken into consideration when free trade agreements are signed by the federal government.

Highlighting the importance of the economic relationship between Canada and the United States, the Premiers emphasized that they continue to engage with their US counterparts to promote the advantages of trade for both sides of the border. For this purpose they will work together on a joint mission to Washington, D.C. which will coincide with the winter meeting of the National Governors Association in February 2019.

The Premiers write to the Governors of US states

The Premiers of the provinces and territories took advantage of the Council of the Federation meeting to draft a  letter to the National Governors Association. In light of the protectionist measures adopted by the US federal administration and the renegotiation of the North American Free Trade Agreement, the letter invites the Governors of all the US states to further deepen existing ties with the Premiers in Canada and ensure the future of the Canada-US partnership.

Asymmetrical federalism and the pan-Canadian drug insurance plan

Following the announcement by the federal government that it intends to set up a pan-Canadian drug insurance plan, the provincial and territorial Premiers  reiterated their support for the principle of asymmetrical federalism.

Although the proposal by the federal government raises a number of questions, in particular concerning respect for provincial constitutional powers, the Premiers consider that governments that wish to retain full control over their drug insurance plans should be able to opt out of the federal program unconditionally and with full financial compensation.

Québec has had its own prescription drug insurance plan since 1997 and has already indicated its intention to opt out.

Cooperation in the health sector

Several other issues in the health sector were also  discussed. The provinces and territories agreed to set up an intergovernmental process for the procurement of specialized medical equipment. They also concurred to further cooperate on preventing opioid-related overdoses and deaths and on other aspects of drug misuse.

Division of powers and the legalization of cannabis

The  Premiers pointed out that the provinces and territories are responsible for several major aspects of this complex process and will face significant costs generated by the federal government's decision to legalize cannabis on October 17, 2018. They emphasized the ongoing need for more resources, in particular to apply the laws that govern drug-impaired driving.

To allow an orderly transition to legalization, the Premiers highlighted the need for the federal government to respond quickly to numerous outstanding issues including road safety, public education and awareness and seed-to-sale tracking, and the ability of the provinces and territories to put in place their own age-verification mechanisms for retail models and on-line promotions and sales.

The Premiers reiterated the importance for the federal government of respecting provincial powers for regulatory decisions, including, for the governments of Québec and Manitoba, additional limitations on home cultivation.  

Bilateral and multilateral meetings attended by the Premier of Québec

In parallel with the main meeting, the Premier of Québec had discussions with his Ontario counterpart. The  two Premiers agreed "to work side-by-side to identify opportunities to strengthen our economies and advance our economic interests between our two provinces and with the United States."

Québec's Premier took advantage of the presence of colleagues to discuss the question of people entering Canada outside border posts with the Premiers of Manitoba and Ontario. Québec, Ontario and Manitoba  called on "the federal government to fully compensate each of the provinces for impacts to services resulting from the increase in non-point of entry border crossings."

In matters of immigration, a shared area of jurisdiction, the federal government has sole responsibility for managing the border, processing asylum requests and allocating the necessary resources.