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Home · Economy & Business · Trade Agreements · Canada-U.S. Free Trade Agreement

Topic spans: 1985 - 1997

Canada-U.S. Free Trade Agreement

It was the most controversial agreement of its kind in Canadian history. Prime Minister Brian Mulroney's vision of free trade with the U.S. read like a Harlequin romance: Canada played the neglected lover, U.S., the negligent partner. Empty promises and veiled threats were all part of the negotiating dance between the world's greatest trading partners. The 1988 Free Trade Agreement was as dry as a stack of legal textbooks and as emotional as battling American cultural domination. It's an issue that still causes heated debate.

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Sealing the friendship with a song

Broadcast Date: Dec. 10, 1997

It signalled a new era in Canada-U.S. relationship. Prime Minister Brian Mulroney and President Ronald Reagan belted out a rendition of When Irish Eyes Are Smiling that would make their ancestors proud. Their wives, Mila and Nancy, and a host of Canadian celebrities joined the two leaders on stage in what the CBC's Carol Off calls one of the most choreographed events in Canadian political history.

The St. Patrick's Day performance capped a very cozy 24-hour meeting in Quebec City. The Shamrock Summit would go down in history for the number of handshakes, embraces and praises. Reagan's visit officially flung the door open to future free trade talks between the countries. They both agreed on the necessity of free trade, saying that lowering tariffs and other barriers were a way to increase prosperity for both countries.

A decade later Brian Mulroney recalls in this CBC TV excerpt how he made free trade with the U.S. a reality. He went straight to the person who could make it happen: his friend and mentor Ronald Reagan.

Sealing the friendship with a song

• Free trade became Prime Minister Brian Mulroney's personal crusade after the 1985 summit but that wasn't always the case. During his 1983 Tory leadership campaign, Mulroney had spoken out against such a deal between Canada and the U.S. "The issue of free trade was decided in the election of 1911," said Mulroney, "And it affects Canadian sovereignty and we'll have none of it. Not during leadership campaigns or any other time."

• In 1911 it was the Liberals lead by Prime Minister Sir Wilfrid Laurier who negotiated a free trade agreement with the U.S. But before the agreement could be ratified, the newly elected Prime Minister Robert Borden and his Conservatives promptly killed the treaty. Ironically, back then it was the Conservatives who argued it would lead to the Americanization of Canada and the loss of British heritage.

• The first free trade treaty between Canada and the United States was signed in 1854. The treaty was abrogated in 1866.
• Free trade is defined as international trade free from protectionist tariffs quotas, export subsides and other government intervention.

Sealing the friendship with a song

Medium: Television

Program: The National Magazine

Broadcast Date: Dec. 10, 1997


Reporter: Carol Off

Duration: 1:40

"When Irish Eyes Are Smiling," Lyrics: C. Olcott, G. Graff. Music: E. Ball. ASCAP.

Last updated:
July 14, 2009


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