Canada's finance ministers meet in Ottawa to discuss trade, competitiveness

Canada's provincial and territorial finance ministers are meeting with their federal counterpart in Ottawa to discuss equalization payments, competitiveness and trade.

Topics will also include the global economy, theCanada Pension Plan, a review of the efficacy of the cannabis taxand countering tax evasion.

The meetings began Sunday nightand will continue Monday.The ministers typically meet with federal Finance Minister Bill Morneau twice a year.

"In my estimation, it should be a constructiveopportunityfor us todiscussthe economy,"Morneausaid Sunday night.

He highlighted the country's low unemployment rate. He also acknowledged there are challenges like the situation in the oil sector to discuss.

In advance of the meeting, Morneaualso confirmed that the federal government will be providing$78.7 billion intransfer funding to provinces and territories during the next fiscal year.

Equalization payments arebased on a complex calculation that isdesigned to help poorerprovinces provide public services that are reasonably comparable to those in wealthyprovinces.

For the first time since 2008, Ontario will not receive an equalization transfer from Ottawa, while Quebec will receive $13 billion from the program.

The discrepancy has renewedperennialcalls to overhaul the equalization formula.

"We're certainly calling on the feds for a review of their federal transfer payments because we want to make sure that Ontario businesses and families are getting our fair share," said Ontario Finance Minister Vic Fedeli.

Alberta, Saskatchewan,and Newfoundland and Labrador have also called for changes to the program.

The Liberals are billing the gathering as a time to "advance progress for the middle class," but many provinces have other issues top of mind.

Ontario, Saskatchewan and New Brunswick have loudly condemned the federal government's plan to impose a carbon tax, starting in 2019.

Morneau said he's prepared to listen to the ministers' concerns, and hopes to provide clear answers as to how the federal plan will work.

However, the objective is clear.

"Obviously we are looking towards ensuring that all parts of the country have a price on pollution. We thinkthat's important," he said.

Objectives and frustrations

Alberta has asked for funds to buy rail cars to move more oil to market, as delays with the Trans Mountain pipeline expansion meanthere's more crude on hand than the province can transport. Because of that, last week Premier Rachel Notleyannounced a temporary 8.7 per cent cut in oil production.

Even with some frustrations, it's unlikely to be as tense as the first ministersmeeting was on Friday.Morneauand the prime minister both spoke at the meeting in Montreal.

In the lead-up to the last finance ministerssummit this summer, Morneau was under pressure to match U.S. President Donald Trump's tax cuts, which slashed the U.S. corporate tax rate from 35 per cent to 21 per cent.

Canada's combined corporate tax rate is just above25 per cent, depending on the province.

While itdidn't equalize Canada with the U.S., the Liberal government's fall fiscal update committed to spendbillions to help corporate Canada compete.