Reciprocity or free trade has been an
issue in Canada since before it was a state. As colonies
in North America developed, trading with other colonies
within close proximity and with desirably products had
been a standard practice. The mother countries had
imposed various duties and restrictions on trade but
whether it was legal or illegal, if the desire one both
side was there, the trading usually took place.
One of the initial problems that Canada
faced in 1867 was the closing of American markets
because of the cancellation of the reciprocity treaty.
This was eventually developed into a part issue with the
Conservatives favouring the development of more trade
with England to compensate for the weakness in US
markets and the Liberals trying, unsuccessful, to open
up those markets. By the time Macdonald ran for
the last time, his national policy was one which
encouraged east-west trade in order to develop a unique
Canadian nation, identity and economic system rather
then North South trade with the U.S.
When Brian Mulroney came to power he was
determined to build a new economic relationship with the
United States which President Reagan was also in favour
of. By the time the 1988 election was called, the Free
Trade Agreement, FTA, had become the central election
issue and one on which emotions ran high. John Turner,
the Liberals and the NDP all claimed that by signing the
FTA, Canada would be giving up large amount of
sovereignty to the US, and would be slowly dominated by
an influx of American money, influence and eventually
control. Turner also claimed that unique social services
such as Medicare would be in jeopardy and Canada would
lose control of it's monetary policy.
Mulroney and the Conservatives argued
that the economic benefits to be gained by creating a
North American Free Trade bloc would more then
compensate for any negative impact evolving trade would
have. Mulroney tried to reassure the electorate that
social programs would be safe, Canadian identity would
be safe and the natural resources of the country would
be used to benefit Canadians.
The debate between the leaders, during
the election, were highly charged and confrontational.
The Conservatives won he election with a majority of
seats but they did not receive a majority of the vote
which revealed a highly split national opinion. The FTA
bill was passed by the Conservatives but the extension
of it to Mexico an the long process of ratification did
not see the final version emerge until the 1990's and
when Jean Chretien became Prime Minister, rather then
cancel or renegotiate the agreement, he added two
additional agreements.
The final agreement was ratified by the
US Congress on November 17th, 1993 by 34 votes in the
House and 23 votes in the Senate. The agreement took
effect on January 1, 1994 and many of the catastrophic
events predicted by its opponents have failed to
materialize while some of the difficulties anticipated
have emerged. The black and white question framed by
Turner and Mulroney, in the end, turned out to
be one of shades of grey with generally more benefits
then costs.
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