Canada–United States Free Trade Agreement - Debate and Implementation

Debate and Implementation

The debate in Canada over whether to implement the negotiated agreement was very contentious. The opposition Liberal Party of Canada under leader John Turner vociferously opposed the agreement, saying that he would "tear it up" if he became prime minister. The opposition New Democratic Party under leader Ed Broadbent also strongly opposed the agreement. Both parties objected that the agreement would erode Canadian sovereignty, arguing that Canada would effectively become the "51st state" of the US if the agreement was implemented. They also raised concerns about how Canada's social programs and other trade agreements such as the Auto Pact would be affected.

The legislation to implement the agreement was delayed in the Senate, which had a Liberal Party majority. Partly in response to these delays, Mulroney called an election in 1988. Trade Agreement was by far the most prominent issue of the campaign, prompting some to call it the "Free Trade Election." It was the first Canadian election to feature large third-party campaign advertising, with supporters and opponents using lobbyists to buy television advertisements.

It was also the first Canadian election to use much negative advertising; one anti-free-trade advertisement showed negotiators "removing a line" from the Free Trade Agreement, which at the end of the advertisement was revealed to be the Canada-U.S. border. Although some opinion polls showed slightly more Canadians against the Agreement than in favour of it, Mulroney's Progressive Conservatives benefited from being the only party in favour of the agreement, while the Liberals and NDP split the anti-free trade vote. Mulroney won a governing majority and the agreement was passed into law even if a majority of the voters had voted for parties opposing free trade.

The Free Trade Agreement faced much less opposition in the US. Polls showed that up to 40% of Americans were unaware that the agreement had been signed. The treaty was given to the Congress for "fast-track" ratification by President Reagan, meaning that it could be accepted or rejected but could not be amended. It passed the House and Senate on 9 September 1988 by comfortable margins.