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Les Archives de Radio-Canada

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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Let the talks begin!

Broadcast Date: Sept. 26, 1985

On Sept. 26, 1985 Prime Minister Brian Mulroney officially announces his interest in beginning free trade talks with the U.S. CBC's Ken McCreath reports that Mulroney had written to President Ronald Reagan earlier, proposing "the broadest possible package of mutually beneficial reductions in barriers to trade in goods and services."
Reagan's response had been quick and enthusiastic.

Mulroney tries to calm opponents of free trade, saying that the essence of Canada — "our political sovereignty, our system of social programs, our commitment to fight regional disparities, our unique cultural identity, our special linguistic character" — is not up for negotiation. Mulroney argues free trade will give Canadians access to the gargantuan American market. In return Reagan believes free trade will give Americans the freedom to invest in Canada and gain access to Canadian resources and markets.

To help Canada get the best deal possible, Mulroney appoints Simon Reisman as his chief negotiator. Reisman is a seasoned political figure. Back in 1965 he successfully negotiated the Canada-U.S. Auto Pact. By contrast Americans appoint Peter Murphy as their chief negotiator. Murphy is an unknown. Twenty-five years younger than Reisman, he has little experience in international trade matters.

The U.S. Congress gives President Ronald Reagan authority to sign a free trade agreement with Canada no later than Jan. 2, 1988. Since the agreement must be reviewed by the Congress for 90 days before that date, the two sides have until midnight on Oct. 4, 1987 to hammer out a deal.

Let the talks begin!

• Negotiations to establish a free trade agreement officially began on June 17, 1986.
• Canadian deputy chief negotiator Gordon Ritchie said that the appointment of Peter Murphy sent a clear message to Canadians that free trade was a low priority for the U.S. Ritchie said that the American team was "mediocre at best" and completely removed from the centres of power in Washington.

• Personality-wise, Reisman and Peter Murphy were completely mismatched. Reisman was a charismatic extrovert, often standing on chairs to make his point. Murphy on the other hand was quiet, guarded and uncommunicative.
• Despite warmly endorsing free trade between Canada and the U.S., Canadians felt President Reagan promptly neglected it.

Let the talks begin!

Medium: Radio

Program: CBC Radio News

Broadcast Date: Sept. 26, 1985

Guest(s):


Reporter: Ken McCreath

Duration: 2:33

Last updated:
March 7, 2008


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