Prime Minister Mark Carney has transformed the way the Canadian government engages with both provinces and international partners through his distinctive use of Memoranda of Understanding (MOUs). In just over a year since assuming office, these agreements have become a cornerstone of his administration’s approach to policy-making and intergovernmental relations, fostering a sense of collaboration while emphasising strategic objectives.
The Rise of the MOU in Canadian Politics
Since Carney took the helm, the term “Memorandum of Understanding” has emerged from relative obscurity to become a buzzword in Canadian political discourse. Traditionally employed in the business world to outline preliminary agreements between parties, MOUs are now being leveraged by Carney’s government as a means of signifying progress and commitment towards achieving broader goals.
Recent weeks have seen a flurry of MOU activity. Notably, a $20 billion agreement was announced between the federal government and British Columbia, aimed at easing tensions over the contentious Alberta pipeline agreement. Days later, Carney signed two MOUs with the President of the Philippines, focused on enhancing tourism and cultural ties. Most recently, a series of 13 commercial agreements worth over $1 billion were touted during Carney’s visit to Saudi Arabia, covering diverse sectors from health technology to defence.
What Exactly Is an MOU?
At their core, MOUs serve as a preliminary framework, ensuring that all involved parties are aligned on their intentions before embarking on extensive projects. Jeremy Barretto, a Calgary-based regulatory expert from Torys LLP, describes these agreements as crucial for establishing mutual understanding. “They confirm mutual intentions between parties,” he notes, emphasising that while often non-binding, they are taken seriously by the governments involved.
In the context of public policy, Barretto points out that MOUs can facilitate dialogue and agreement on complex issues ranging from project development to regulatory frameworks. “It’s a way to avoid prolonged negotiations that can drain resources and time,” he adds, highlighting the efficiency these agreements can bring to intergovernmental collaborations.
The Broader Implications of Carney’s MOUs
While Carney’s government has embraced MOUs, their significance extends beyond mere formalities. Michael Wernick, former clerk of the Privy Council, argues that these documents are vital for aligning divergent interests. He characterises the recent Alberta and B.C. MOUs as an important “alignment exercise”, noting that they have managed to get both the federal and provincial governments on the same page—a noteworthy achievement given the historical complexities surrounding energy policies in Canada.
Wernick also points out that the agreements implicitly acknowledge the realities of the oil and gas sector, suggesting a shift in perspectives on both sides of the provincial divide. “The Alberta government has accepted that there will not be an oil pipeline to northwest British Columbia, while B.C. has acknowledged the ongoing reality of oil traffic through southern terminals,” he explains.
Navigating the Future: The Challenge Ahead
Despite the optimistic tone surrounding these agreements, the real challenge lies in their implementation. As Wernick cautions, the MOUs represent just the beginning of a lengthy negotiation and implementation process. “2026 may well be remembered as the year of negotiations and deal-making,” he states, underscoring the importance of translating these agreements into tangible outcomes that deliver on their promises.
The potential for other provinces to seek similar MOUs, inspired by the recent successes, is high. As Wernick suggests, this dynamic is part and parcel of federal governance, which requires a delicate balance of interests across multiple jurisdictions.
Why it Matters
Carney’s strategic deployment of Memoranda of Understanding has reshaped Canadian governance, signalling a willingness to engage collaboratively while addressing complex issues. These agreements not only foster cooperation among provinces but also serve as a powerful tool for advancing national priorities. As Canada navigates its multifaceted energy landscape and other pressing policy challenges, the effectiveness of these MOUs will be closely scrutinised, with their success or failure likely to have lasting repercussions on the political landscape and intergovernmental relations in the years to come.
