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Cutting Red Tape in Canada: A Regulatory Reform Model for the United States?

Canada recently passed a federal law requiring that one regulation be removed for every new regulation introduced. This change has deep roots in a broader set of reforms from the province of British Columbia, designed to control red tape while preserving justified regulation. British Columbia’s model of regulatory reform is notable for its success and longevity. Canada’s experience with regulatory reform offers some very practical lessons for US governments. The essential ingredients of effective reform include political leadership from the top, public reporting of clear metrics, and constraints on regulators. It is also very helpful to have a credible group outside government pushing for less red tape. In Canada’s case, that group was and continues to be small business.