The Competition Bureau Canada has commissioned an independent study to explore the economic benefits of implementing more competition-friendly regulations in Canada. Conducted by international experts, the study indicates that such reforms could potentially increase the economy by 10% over the long term, raising living standards by approximately $7,500 per Canadian.

This study is crucial as Canada grapples with ongoing productivity challenges, which many experts attribute to weak competitive intensity and regulatory barriers. By quantifying the costs of these barriers and the potential benefits of reform, the study aims to provide a clearer picture of the economic landscape.

The research focused on key sectors such as network industries (energy, transportation, communications), retail distribution (liquor, gasoline, grocery, medicine), and professional services (accounting, legal, engineering, architecture). These sectors are vital as they supply goods and services essential for other industries, and improving their efficiency could yield widespread economic benefits.

Key findings reveal that Canada has fallen behind its peers in terms of regulatory competitiveness. Aligning Canadian regulations with those of the most competition-friendly countries could lead to significant productivity gains. The study suggests that even modest reforms could yield a 5% increase in GDP per capita.

Pro-competitive reforms aim to eliminate unnecessary restrictions while still safeguarding legitimate regulatory goals. The study outlines various barriers to competition and suggests reforms such as simplifying licensing requirements, easing monopolistic practices, and enhancing consumer choice and information.

Ultimately, the study emphasizes the need for a coordinated effort among policymakers to seize the opportunity for economic growth through pro-competitive reforms, drawing on successful examples from other countries like Australia.