Canada's Economic Woes: A Self-Inflicted Problem

Canada's economic woes are largely self-inflicted, according to former Reform Party leader Preston Manning. The country's trade relationship with the United States has deteriorated badly, but Manning believes that Canada's own problems are a major contributor to its economic struggles.

In August, Washington imposed 50% tariffs on $27.6 billion worth of Canadian goods, and Canada responded by imposing counter-tariffs on an equivalent value of U.S. imports. However, Manning argues that this is not the main issue facing Canada's economy. Instead, he believes that internal trade barriers, regulatory uncertainty, and federal-provincial battles are major obstacles to economic growth.

Manning suggests that Ottawa should pull back from areas that the Constitution assigns to the provinces, allowing them to take greater responsibility for their own affairs. In return, provinces should remove barriers to interprovincial trade, where Ottawa has a constitutional role. This could lead to fewer federal-provincial battles, reduced barriers to investment, and greater economic opportunities.

The consequences of these tensions are not only economic but also political. The recent referendum questions in Alberta on immigration, constitutional reform, and the province's future within Canada reflect growing frustration with the federation. However, Manning argues that this is not a new development but rather a culmination of decades-long issues.