A federal advisory panel has released a sweeping proposal to transform the economic landscape of Atlantic Canada, urging the four provinces to function as a single integrated market. The 181-page report, made public on September 25, outlines a series of ambitious recommendations, including the creation of a C$1 billion growth fund and a regional power grid operator—institutions that do not currently exist.
The plan encompasses New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. It sets bold targets for 2035, including more than C$25 billion in electricity investment and C$100 billion for natural resource development. However, these figures represent aspirations rather than approved budgets. The Atlantic Economic Panel, though established under federal law, asserts its independence, and Ottawa's preliminary response indicates it will review the recommendations without immediate adoption.
At the heart of the proposal is the concept of 'one economy'—a coordinated approach that preserves provincial autonomy while dismantling interprovincial trade and labor mobility barriers. Major investment opportunities would be showcased through a single Atlantic platform, and infrastructure projects would increasingly be undertaken as regional collaborations. The report recommends that at least half of major projects involve cross-border partnerships, with streamlined federal-provincial reviews that respect Indigenous rights and environmental safeguards.
The most concrete institutional shift involves electricity. A new Regional Independent System Operator would centralize planning, operations, and investment decisions, replacing the current fragmented system of four provincial utilities and regulators. This move aims to enhance efficiency and reliability, though it raises questions about cost allocation and rate impacts across provinces.
The report also calls for a unified workforce strategy, improved transportation links, and accelerated adoption of artificial intelligence, targeting 80% of Atlantic businesses using AI by 2035. Yet, these metrics focus on adoption rates rather than productivity gains or job quality, a distinction that could influence the effectiveness of such initiatives.
Underlying these proposals is a persistent productivity gap. The panel notes that Atlantic Canada's labor productivity fell from 87% of the national average in 2016 to 82% in 2024, with significant variation among provinces. Newfoundland and Labrador, buoyed by capital-intensive industries, exceeds the national average, while other provinces lag considerably.
The investment figures represent different scales: the C$1 billion fund would finance growing enterprises, while power and resource totals reflect hoped-for decade-long investments, not direct public spending. The report also sets ambitious trade goals, aiming to double exports to the European Union to C$27 billion and to the UK to C$4.4 billion by 2035. A workforce gap of approximately 270,000 workers would need to be addressed through immigration, mobility, and training programs.
Implementation hurdles remain substantial. A unified power market requires legislative alignment and cost-sharing agreements among provinces. The proposed electricity investment fund lacks a defined capitalization plan and rate-impact model. The prosperity fund's governance and public-private capital split are yet to be determined.
The panel's recommendations are based on extensive consultation, including over 50 submissions and 100 CEO conversations, but they are not a fiscal plan or an electoral mandate. Near-term action items include designing the growth fund's structure within a year and annual public reporting on progress. The first formal checkpoint is set for May 31 to June 2, 2027, when Ottawa's commitment to the initiative will be tested.
