Contact Us
C.D. Howe Institute
Become a Member
Back to the Productivity Blueprint

Regulation

Canada’s regulatory environment has accumulated rules, blocked development, and raised barriers to entry that discourage the investment and innovation productivity growth requires. Businesses face slow, unpredictable approvals for everything from a new subsidiary to a national pipeline. Homebuilders face duplicate inspections and outdated codes that add months to every project. Workers face professional licensing rules that treat a provincial border like a foreign one. Rules have been added for decades without always removing the ones that no longer serve a purpose, leaving the system heavier than the problems it was built to solve.

Read the Blueprint

Regulation Recommendations Summary

Recommendation Area of Reform Level Source Document
1 Give expert regulators final say on major project approvals Speed up the regulatory process
Federal
Clear the Way: Does the Building Canada Act Help Canada Build?
2 Limit regulatory reviews to a project’s direct effects Speed up the regulatory process
Federal
Clear the Way: Does the Building Canada Act Help Canada Build?
3 Set approval timelines that hold for government and applicants alike, with extensions only for genuinely unforeseen circumstances Speed up the regulatory process
Federal
Clear the Way: Does the Building Canada Act Help Canada Build?
4 Adopt common baseline professional licensing standards across provinces, admitting out-of-province workers automatically unless a specific public-safety exception applies Reduce regulatory complexity
FederalProvincial
2025 Labour Market Review: Trade Uncertainty, Structural Pressures, and Policy Priorities for Canada
5 Remove the remaining barriers to trade between provinces, such as the lack of mutual recognition for services and differing trucking rules on vehicle weight, size, and bridge clearances Reduce interprovincial trade barriers
FederalProvincial
A Backgrounder on Remaining Barriers to Internal Trade within Canada
6 Appoint senior officials to lead the federal-provincial table on internal trade barriers, add a permanent federal co-chair, and estimate the cost of each unresolved barrier to prioritize effort Reduce interprovincial trade barriers
FederalProvincial
Eyes on the Prize: A Game Plan to Speed Up Removal of Internal Trade Barriers in Canada
7 Standardize building codes and eliminate duplicate inspections for modular and prefabricated housing Reduce regulatory complexity
ProvincialMunicipal
Building Smarter, Faster: Technology and Policy Solutions for Canada’s Housing Crisis
8 Create a standing, economy-wide review process to inventory regulations and retire or consolidate outdated ones Reduce regulatory complexity
Federal
Regulatory Reset: A Policy Roadmap for Expanding Financial Advice to Middle- and Lower-Income Canadians
9 Allow private auto insurers to compete on price and product design Improve auto insurance regulation
Provincial
Time for a Tune-up: Reforms to Private-Sector Auto Insurance could Lower Costs and Add Value for Consumers
10 Finish implementing open banking and update the rollout plan to reflect Budget 2025 Improve financial services regulation
Federal
Open Banking in Canada – The Path to Implementation
11 Finish modernizing federal capital markets legislation, and create two federal agencies: one for systemic risk and one for capital markets crime enforcement Improve financial services regulation
Federal
Finish the Job: Completing Canada’s Capital Markets Reform Agenda
← Previous Policy Area1. Tax Reform and Competitiveness Next Policy Area →3. Competition

Stay Informed

Get the Productivity Blueprint research delivered to your inbox.

Subscribe