Abstract

This article offers a theoretical framework for understanding the Canadian energy policy of the last two decades. Starting with a review of the Canadian literature on the topic, the article reviews the main constitutional features of Canadian federalism, which attributes complementary powers to both the central government and the energy-producing provinces, in this strategic area of economic activity. He suggests that major changes in the international environment and new domestic determinants, such as the aboriginal issue, brought about a breakdown of Canada's traditional equilibrium between national and provincial jurisdictions. The article also discusses the main implications of the North American Free Trade Agreement since its implementation in 1989, concluding that a thorough process of “globalization” of the energy market is well under way between Canada and the United States.

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