Hot words about sovereignty and US trade? It’s a lot like 1988

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Donald Trump recurring thoughts About Canada being part of the United States – not surprisingly – there are raised hackles in Ottawa.

“Not a snowball’s chance in hell,” the prime minister replied Justin TrudeauWhen he was Finance Minister Dominique Le Blanc noted that “the joke is over.” Opposition leaders are equally irritated by conservative Pierre Poilievre claims “Canada will never be the 51st state” and New Democrat Jagmeet Singh he says to the incoming president “cut the crap”.

However, the president-elect of the United States continues By pressing the buttons of Canada. He suggested that the highly integrated economies and trade ties between the two countries were overstated, and argued that the trade imbalance meant the US was subsidizing the economy of its northern neighbor.

In doing so, Trump underscored a persistent concern raised by some on this side of the border: namely, that Canada’s national sovereignty is under threat because it is so closely tied to the United States.

This isn’t a new concern — in fact, it will be familiar to anyone who remembers Canada first looking at a free trade agreement with the U.S. in the 1980s, long before Trump’s influence extended beyond the Manhattan real estate sector.

The road to free trade

In Pierre Trudeau’s final years as prime minister, the wheels were set in motion for Canada to consider a free trade agreement with the United States.

The country was hit recession in the early 1980sand in 1982 a royal commission was establishedled by former Liberal cabinet minister Donald Macdonald. Among its objectives was to examine future prospects and challenges for the Canadian economy.

The commission’s report, back in 1985, confirmed that it saw Canada seeking a way forward in free trade with the United States with the goal of creating improved and secure access to the American market, but nevertheless noted that “the denial of that access is an ever-present threat.”

WATCH | The Macdonald report supported free trade:

The Macdonald report supported Canada signing a free trade agreement with the United States

The Progressive Conservatives came to power then Prime Minister Brian Mulroney a year ago at the expense of the Liberalshe wondered what the commission had found.

“There’s a degree of hard work, achievement, and a lot of interesting ideas that need to be explored.” Mulroney said.

Some business leaders they were amazed at the prospect Labor groups have strong concerns about the future free trade agreement, including potential job losses.

Not all politicians were on board.

“If we move toward a free trade agreement with the United States, I think the political consequences will be very clear,” said Bob Rae, then-leader of the New Democrats in Ontario.

“Don’t ask provincially or federally elected people to do a great job of running the economy, because all those decisions will be made in New York and Chicago and Washington and we’ll just be a customer of the United States.”

WATCH | How the deal came together:

11th hour free trade agreement in 1987

Reporter Mike Duffy explains how the deal came together at the last minute.

Nevertheless, Ottawa began negotiations with Washington. A proposed agreement was reached in October 1987, and a free trade agreement was signed in January 1988 by Mulroney and US President Ronald Reagan.

However, free trade had not yet come into effect.

Brian Mulroney, Ronald Reagan and a Mountie stand next to each other at the 1988 G7 summit in Toronto.
A June 19, 1988, file shows then-Prime Minister Brian Mulroney and then-US President Ronald Reagan standing side by side at the G7 summit in Toronto. Free trade was hotly debated in Canada and became a major issue in the federal election that fall. (Gary Hershorn/Reuters)

Liberal Leader John Turner has signaled his party won’t make it easy for the government to implement what it calls the “Selling Canada Act.”

“We intend to fight domestically, we intend to fight in parliament,” Turner said. “We intend to fight every inch of the way.”

Ed Broadbent, the leader of the New Democrats, argued that there had not been an “open and honest debate” on the full details of what free trade would entail.

Margaret Thatcher’s reception

The extensive discussion of the free trade debate even attracted the attention of Margaret Thatcher during the British Prime Minister’s visit to Canada in June 1988.

WATCH | Thatcher made headlines on free trade:

When Margaret Thatcher took up free trade

In 1988, British Prime Minister Margaret Thatcher visited Canada and made some headlines with her remarks about free trade during a speech to MPs in Ottawa.

“You should not fear that Canada’s national identity will be diminished in any way (in implementing a free trade deal),” Thatcher said.

Her unsolicited comments to Parliament will see the country’s opposition leaders call out the woman dubbed the “Iron Lady” for meddling in domestic politics.

“He has intervened in our national debate on an issue that could dominate the next general election in this country,” Turner said.

“We are no longer a colony of Great Britain and we do not want to be a colony of the United States,” he added.

The NDP’s Broadbent newspaper questioned whether Thatcher had the right to “come here and meddle in Canadian affairs.”

Turner urged Mulroney to call an election to give Canadians a chance to debate the issue. When an election was called for early October, Mulroney said free trade would be central to the campaign that will send Canadians to the polls next month.

Free trade and national sovereignty

Ed Broadbent on the campaign trail in October 1988.
At the time, federal New Democrat Party leader Ed Broadbent said Brian Mulroney avoided election debates focused on free trade because the Tory leader realized Canadians would resent it. (National/CBC Archives)

The Liberals and New Democrats quickly pushed for a televised debate devoted solely to the issue. But the Progressive Conservatives were cool with this idea.

Broadbent suggested that Mulroney understands that “the more Canadians know about the trade deal he’s negotiating with the United States, the more unhappy they are.”

WATCH | The opposition wants a televised debate on the free trade agreement:

In 1988, the debate focused only on free trade? It almost happened

In 1988, the Liberals and New Democrats wanted to hold a televised debate focused solely on free trade. Personal computers were cool to the idea.

The issue of secession was indeed part of future debate between the leaders, including concerns about how the treaty might affect Canada’s national sovereignty.

Turner argued that a move to free trade would limit Canada’s ability to maneuver under US control.

“I happen to believe you’ve sold us out,” Turner told Mulroney during a debate in English on October 25, 1988.

In Mulroney’s response, he denied the charge and said his liberal opponent “does not have a monopoly on patriotism.”

WATCH | Recalling the 1988 leaders’ debate:

Highlights from the 1988 federal election

Reporting by Don Newman and Wendy Mesley on the leaders’ debate with Brian Mulroney, John Turner and Ed Broadbent. It aired on CBC’s The National on October 25, 1988.

Mulroney’s Tories would return to power – again with a commanding majority, but with fewer seats than before.

The 1988 election would be the last in which Mulroney, Turner and Broadbent would lead their parties.

Turner He died in September 2020. Both of them Broadbent and Mulroney He died in 2024. The fight for free trade was part of their legacy as federal leaders.

The original free trade agreement between Canada and the United States entered into force on the first day of 1989.

Five years later, It was replaced by the North American Free Trade Agreement (NAFTA). Then came NAFTA in April 2020 Replaced by CUSMA — The Canada-U.S.-Mexico Trade Agreement — was negotiated at the behest of Trump during his first term in the White House.

After his re-election in November, Trump announced that he would impose a 25 percent tariff on all goods entering the country from Canada and Mexico. This threat, along with the subsequent “51st state” remarks, was seen by some as a sign of his intention to renegotiate CUSMA.

WATCH | The eve of a new era of free trade:

Free trade is almost here

On New Year’s Eve 1988, the CBC reports on a free trade agreement that will take effect the next day.

 
Report

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