Little attention is given to intergovernmental relations in EU federalist literature. Thus, the character of intergovernmental relations changes policy coordination as opposed to collective, legislative decisions. The implication for federalism is that shared rule does not necessarily manifest itself through legislative means, but also through political processes outside the constitutional framework. This chapter advances a policy-centred, yet systemic and comparative approach. To describe the transformation of intergovernmental relations, the chapter compares Canada’s internal trade with economic governance in the EU, establishing an important link between policy challenges, the functions of intergovernmental relations, and the structure of federal systems.
