I'll also contest the assertion that Canada's consumer advocacy or protection is greater than the European Union's. My argument will be facts-based.
There are European Union regulations protecting consumers related to baggage. Specifically, it is EU regulation number (EC) 889/2002. It was enacted on May 13, 2002. It replaced EU regulation number (EC) 2027/97, which was enacted October 9, 1997. I'll cite directly the EU press release announcing this:
...EU legislation provides rights for passengers in the event of problems with baggage and in the event of injury or death following an accident. The passenger of an EU airline will be well protected whatever their destination and whatever their flight taken, whether it is an international or domestic flight.
In particular, in the event of damage or loss of baggage, the responsibility of an airline is limited
—this is as of September 30, 2004—
to €1,180.
Translated into Canadian dollars, that's about $3,000.
There are also specific measures, and this is one of the key differences between the EU legislation and the current legislation in Canada. The EU legislation prescribes specific minimum standards for various circumstances, whether it be baggage loss or damage, or delay or cancellation of flights. In Canada, the entire airline industry and consumer protections within the Canadian airline industry are governed strictly under the provisions of the required published tariffs of the airlines themselves.
Here's what that means exactly. A particular Canadian airline has an obligation to publish its tariffs—charges and rates and all the ensuing contractual obligations it has to its customer—in exchange for the fee for travel, the contract for the airline ticket. If an airline chooses to publish in its tariffs that it will do nothing for you, it has met its tariff obligations.
For example, Air Canada employs a $1,500 baggage liability maximum. WestJet has $250 as a maximum for baggage loss.