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@MadMonzer comment:
(1) It is somewhat interesting to note that Victoria 3 has introduced a new tier above empire, called "hegemony". (It reminds me of my abortive attempt to make a Crusader Kings 2 mod with all the titles shifted down by a step, so that "mega-empires" like India and Rome could be on their own tier separate from regular empires like Bengal and Italy.) In-game, India is a hegemony, Britain is an empire, and Canada is a kingdom. Personally, though, I think it makes more sense to call Canada an empire, with each province afforded the dignity of kingdom status in the federation. (The USA's states, with their tradition of "dual sovereignty", definitely should count as kingdoms.)
(2) Canada is not a vassal of Britain. Rather, the title is still personally held by Charles himself, though he has delegated the administrative minutiae to local steward Trudeau. Call it a personal union. (India does count as a vassal.)
One of my favorite half-joking proposals: Either the US should get 50 seats at the UN, or the EU should get one. They are both unions of sovereign states under the umbrella of a larger entity, after all.
EU countries continue to have separate foreign policies. Sure, they're coordinated, but there's no larger mechanism to ensure absolutely unanimous action in foreign and security matters, as Hungary demonstrates.
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