Brian Mulroney (1984–1993): Free Trade and Constitutional Challenges
- Brian Mulroney became Prime Minister in 1984 as leader of the Progressive Conservative Party, promising closer U.S. relations and national unity.
- His key policy was free trade, which led to the Canada–U.S. Free Trade Agreement (1988) and later NAFTA (1994).
- These agreements boosted exports and investment but caused job losses in some industries and criticism for increasing U.S. influence over Canada.
- Mulroney also introduced the Goods and Services Tax (GST) in 1991, which was unpopular but increased government revenue.
- He faced two failed attempts to reform the constitution (the Meech Lake Accord (1987) and Charlottetown Accord (1992)) which aimed to give Quebec “distinct society” status but failed to gain full approval.
- Public anger over the economy, corruption, and constitutional failures led to the collapse of the Progressive Conservative Party in the 1993 election, when it was reduced to only two seats.
Definition
Free Trade
- Trade between countries without tariffs or restrictions, intended to increase economic growth.
Jean Chrétien (1993–2003): Economic Recovery and National Unity
- Jean Chrétien, leader of the Liberal Party, won a landslide victory in 1993 after the fall of Mulroney’s Conservatives.
- His government focused on balancing the federal budget, cutting spending, and encouraging private sector growth.
- By the late 1990s, Canada achieved its first budget surplus in decades and experienced strong economic growth.
- Chrétien faced a renewed Quebec separatist threat after the 1995 referendum, where Quebec voted narrowly (50.6% to 49.4%) to remain part of Canada.
- To strengthen national unity, Chrétien passed the Clarity Act (2000), stating that any future independence referendum must have a clear question and majority.
