This Commentary highlights the conclusions of an APEC Policy Forum held in Halifax, N.S. on June 14, 2005. For example, a resulting conclusion was that Canada’s Equalization program must be formula-driven to allow it to appropriately respond in full to the widely divergent fiscal resources of Canadian provinces. As such, it cannot be governed by a fixed amount. Therefore, the program should return to one based on the provision of the absolute dollar amounts required to equalize individual provinces’ fiscal positions rather than be limited to the allocation of a predetermined amount of money. As well, the Equalization program should retain the Representative Tax System as a measure of fiscal capacity and not utilize macro indicators. Forum participants recognized the critical importance this program plays in supporting the provision of public services in the Atlantic provinces and emphasized the need for the federal government to adhere to the principles of Equalization as expressed in the Canadian Constitution.