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Historical BackgroundThe 1970s and early 1980s had been difficult economic times in Canada. By the early 1980s, Canada saw high unemployment and inflation, and a ballooning federal budget deficit. Despite signs of economic recovery, Canadians opted to reject a listless Liberal government in 1984, opting for a more market-oriented Progressive Conservative government, led by Brian Mulroney. Reducing the deficit and improving Canada’s economic performance were central to the policy agenda of the new Conservative government. The 1984 federal election saw the Conservatives win a massive landslide victory with 50% of the popular vote and 211 of the 282 seats in the House of Commons. Critical to Mulroney’s victory was his ability to earn votes and seats in Quebec. In 1984, the PCs managed to add strong Quebec support to its traditional support base in western Canada. Although the Conservatives enjoyed solid support from every region of the country in 1984, the Quebec-West alliance was central to the PC electoral coalition. Between the 1984 and 1988 federal elections were several developments that helped to set the stage. Progressive Conservative ScandalsSoon after the 1984 election, Mulroney’s caucus was plagued with scandal after scandal. A number of his ministers were forced out of office. The PCs’ overwhelming popularity in 1984 was already under attack. Mulroney needed to draw attention away from the scandal and focus on nation-building if he wanted to maintain power. As a result, the Meech Lake Accord and the Canada-US Free Trade Agreement became central issues in Canada. Drafting of the Meech Lake AccordWhen the Canada Act was adopted in 1982, Quebec was opposed to many aspects of it and refused to sign on. One of the keys to Mulroney’s support in Quebec was that he promised to bring Quebec into the constitutional fold by addressing Quebec’s outstanding concerns in a new constitutional agreement. The Meech Lake Accord was drafted to meet five of Quebec ’s major demands:
On April 30, 1987, Mulroney and all the premiers agreed to the Accord. The Accord had the support of all three major federal political parties. Drafting of the Free Trade Agreement with the United StatesOn October 4, 1987, Mulroney and American president Ronald Reagan initialed the Free Trade Agreement in Washington, D.C. The free trade agreement would abolish most tariffs at the Canada-USA border and established a process for dealing with trade disputes. Although Mulroney had publicly opposed free trade when seeking the Conservative leadership in 1983, he became convinced of its value in improving the efficiency of Canadian business, providing access to a large market of consumers, and protecting Canada from growing American protectionism. Free trade was controversial, and a vigorous debate over the merits of the agreement began. Critics argued that the agreement “sold out” Canadian interests and impinged on Canadian sovereignty. Defenders of the agreement argued that this would provide the economic “cold shower” that the Canadian economy needed. The free trade agreement would prove to be the defining issue of the 1988 election. Next>>
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