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Prime Minister Mark Carney has transformed the landscape of Canadian political communication, introducing a lexicon that blends corporate jargon with governance. His government’s frequent use of memoranda of understanding (MOUs) has not only reshaped how agreements are perceived but has also become integral to the administration’s strategy for managing relationships between provinces and other stakeholders. Recently, a notable $20 billion MOU was unveiled to ease concerns in British Columbia regarding the Alberta pipeline proposal—a clear demonstration of Carney’s commitment to fostering intergovernmental collaboration.
The Rise of the MOU
The term “memorandum of understanding” has rapidly become a staple in political discourse, largely due to Carney’s penchant for corporate language. Unlike traditional agreements, MOUs serve as non-binding frameworks that articulate mutual goals and intentions between parties before engaging in more formal contracts. Jeremy Barretto, a regulatory partner at Torys LLP, succinctly explains, “MOUs are a first step in confirming mutual intentions between parties.” While these documents can be straightforward, their implications extend beyond mere formalities, often acting as catalysts for action.
Historically, governments have signed MOUs to outline broad objectives, particularly in the context of complex projects. In recent weeks, the Carney administration has signed several high-profile MOUs, including those with British Columbia and the Philippines, aimed at enhancing tourism and cultural exchange. Notably, Carney’s visit to Saudi Arabia resulted in agreements worth over $1 billion, spanning various industries such as health technology and defence. These initiatives illustrate how MOUs have become a cornerstone of the government’s approach to both domestic and international relations.
Aligning Interests Between Provinces
The recent MOU between the federal government and British Columbia represents a significant step in aligning interests on contentious issues like the Alberta pipeline project. Carney’s government faces the challenge of reconciling differing provincial priorities while maintaining national cohesion. According to Michael Wernick, former clerk of the Privy Council, the recent agreements can be viewed as “an alignment exercise,” reflecting a rare convergence of interests between Alberta and British Columbia after years of tension.
Wernick emphasises that the Alberta government has finally acknowledged the unlikelihood of an oil pipeline reaching northwest British Columbia. In a similar vein, British Columbia Premier David Eby has moderated his stance, recognising the reality of oil transportation through southern terminals. This shift in perspective underscores the importance of MOUs as mechanisms for facilitating dialogue and compromise between provinces that have historically been at odds.
The Broader Implications of MOUs
While MOUs may be informal and non-binding, their significance in the policy-making process cannot be understated. They represent a commitment to collaboration and a willingness to address complex issues through dialogue. Barretto points out that these agreements help avoid protracted negotiations that can stall progress and waste resources. He notes, “It’s one thing for the Prime Minister and the Premier to stand at a podium and say they agree on something. It’s another thing to put out a document that has details on the price of carbon ten years in the future.”
Critics have raised concerns about the potential for MOUs to become mere public relations exercises, lacking substance and accountability. However, Wernick argues that they should be viewed as starting points for longer-term negotiations. He asserts that the real challenge lies in the implementation and delivery of the commitments outlined in these agreements, predicting that 2026 may be a pivotal year for Canadian political negotiations.
Why it Matters
The emergence of MOUs as a central feature of Carney’s governance style signals a shift in how political agreements are framed and executed. As the Prime Minister continues to navigate the complexities of federalism in Canada, the ability to forge consensus through MOUs will be crucial in addressing pressing challenges, from energy policy to economic development. The impact of these agreements extends beyond immediate outcomes; they may well define the future of collaboration between provinces and the federal government, shaping the trajectory of Canadian policy for years to come.
