Editing Brian Mulroney (section)

==== Free trade and 1988 re-election ====
Critics noted that Mulroney had originally professed opposition to [[free trade]] during the 1983 leadership campaign<ref name="autogenerated1">Donaldson, p. 334.</ref> though the 1985 report of the [[MacDonald Commission]] suggested free trade as an idea to him.<ref>{{Cite news|url=http://www.thecanadianencyclopedia.ca/en/article/royal-commission-on-economic-union-and-development-prospects-for-canada/|title=Royal Commission on Economic Union and Development Prospects for Canada|last=Banting|first=Keith G.|work=The Canadian Encyclopedia|access-date=May 5, 2018|archive-date=January 14, 2018|archive-url=https://web.archive.org/web/20180114030330/http://thecanadianencyclopedia.ca/en/article/royal-commission-on-economic-union-and-development-prospects-for-canada/|url-status=live}}</ref> Negotiations between Canada and the United States for a [[free trade treaty]] started in May 1986. In October 1987, a deal was reached;<ref>{{cite web |last1=Wilkinson |first1=Bruce |title=Free Trade |url=https://www.thecanadianencyclopedia.ca/en/article/free-trade |website=Canadian Encyclopedia |access-date=June 5, 2022 |date=February 7, 2006 |archive-date=June 5, 2022 |archive-url=https://web.archive.org/web/20220605235306/https://www.thecanadianencyclopedia.ca/en/article/free-trade |url-status=live }}</ref> the [[Canada–United States Free Trade Agreement]] (CUSFTA) stated that all [[tariff]]s between the two countries would be eliminated by 1998. This deal was achieved not least because of Mulroney's close relationship with U.S. President Ronald Reagan.<ref>Stephen Clarkson. ''Canada and the Reagan Challenge: Crisis and Adjustment, 1981–85'' (2nd ed. 1985) ch 5, 8</ref> This agreement was controversial; while Mulroney used his massive majority in the House of Commons to pass the bill, the [[Liberal Party of Canada|Liberal]]-dominated [[Senate of Canada|Senate]] demanded an election before proceeding to a ratification vote.<ref>{{cite web |last1=Farnsworth |first1=Clyde |title=Canadian Pact Voted By Senate |url=https://www.nytimes.com/1988/09/20/business/canadian-pact-voted-by-senate.html |website=New York Times |access-date=May 29, 2022 |date=September 20, 1988 |archive-date=March 11, 2022 |archive-url=https://web.archive.org/web/20220311155826/https://www.nytimes.com/1988/09/20/business/canadian-pact-voted-by-senate.html |url-status=live }}</ref> This induced Mulroney to ask [[Governor General of Canada|Governor General]] [[Jeanne Sauvé]] on October 1 to dissolve [[33rd Canadian Parliament|Parliament]] and call [[1988 Canadian federal election|an election for November 21]].<ref name="1988CanadianElection">{{cite web |last1=Azzi |first1=Stephen |title=Election of 1988 |url=https://www.thecanadianencyclopedia.ca/en/article/election-1988-feature |website=Canadian Encyclopedia |access-date=May 29, 2022 |date=September 28, 2008 |archive-date=May 24, 2020 |archive-url=https://web.archive.org/web/20200524075945/https://www.thecanadianencyclopedia.ca/en/article/election-1988-feature |url-status=live }}</ref>
[[File:President Bush, Canadian Prime Minister Brian Mulroney and Mexican President Carlos Salinas participate in the... - NARA - 186460.jpg|thumb|NAFTA Initialling Ceremony, October 1992; From left to right: (Standing) Mexican President [[Carlos Salinas|Salinas]], US President [[George H. W. Bush|Bush]], Prime Minister Mulroney, (Seated) [[Jaime Serra Puche]], [[Carla Hills]], [[Michael Wilson (Canadian politician)|Michael Wilson]].]]
The trade deal was the main issue of the election, with the Liberals and [[New Democratic Party]] (NDP) opposing it; Liberal leader [[John Turner]] (who was preparing for his second campaign after Mulroney defeated him in [[1984 Canadian federal election|1984]]) believed that the agreement would "Americanize" Canada and cost many Canadian jobs. A week after the October 25 debate, the Liberals were six points ahead of the PCs. To combat this Liberal surge, the PCs began running a more negative campaign, capitalizing on the perceived lack of public confidence in Turner, his perceived inability to lead the Liberal Party, and arguing that he only opposed free trade because of political opportunism. The Progressive Conservatives poll numbers began to rebound, and they were re-elected with a greatly reduced majority, winning 169 out of 295 seats and 43 percent of the popular vote.<ref name="1988CanadianElection" /> Mulroney became the first and only federal Canadian Conservative party leader since [[John A. Macdonald]] to lead his party to a second majority government.{{efn|[[Conservative Party of Canada (1867–1942)|Conservative]] Prime Minister [[Robert Borden]] won two majority governments; the second majority he won in [[1917 Canadian federal election|1917]] was when he was the leader of the [[Unionist Party (Canada)|Unionist Party]], a party composed of pro-conscription Conservatives and Liberals.}} The trade deal gained the support of Quebec Premier [[Robert Bourassa]], which helped the PCs maintain their standing in Quebec.<ref>{{cite web |last1=Parisella |first1=John |title=Robert Bourassa: vision and resilience |url=https://policyoptions.irpp.org/magazines/the-best-premier-of-the-last-40-years/robert-bourassa-vision-and-resilience/ |website=Policy options |access-date=July 1, 2022 |date=June 1, 2012 |archive-date=October 4, 2022 |archive-url=https://web.archive.org/web/20221004134151/https://policyoptions.irpp.org/magazines/the-best-premier-of-the-last-40-years/robert-bourassa-vision-and-resilience/ |url-status=live }}</ref> In this election, Mulroney transferred to another eastern Quebec seat, [[Charlevoix (federal electoral district)|Charlevoix]].<ref>{{Cite web |title=Profile |url=https://lop.parl.ca/sites/ParlInfo/default/en_CA/People/Profile?personId=13477 |access-date=March 1, 2024 |website=lop.parl.ca |archive-date=June 8, 2023 |archive-url=https://web.archive.org/web/20230608102457/https://lop.parl.ca/sites/ParlInfo/default/en_CA/People/Profile?personId=13477 |url-status=live }}</ref>

Also on November 21, Mulroney made a controversial [[Order in Council]] which allowed the establishment of the AMEX Bank of Canada (owned by [[American Express]]), despite Finance Minister [[Michael Wilson (Canadian politician)|Michael Wilson]] rejecting AMEX's application to open a Canadian bank in 1986. The Amex Bank of Canada started operating on July 1, 1990. [[Toronto-Dominion Bank]] chairman Richard Thomson accused Mulroney's government of favouritism toward Amex as its Chief Executive Officer, James Robinson, supported free trade.<ref>{{cite web |last1=Newman |first1=Peter |title=The brash new kid on the block |url=http://archive.macleans.ca/article/1990/7/30/the-brash-new-kid-on-the-block |website=Maclean's |access-date=June 9, 2022 |date=July 30, 1990 |archive-date=January 4, 2023 |archive-url=https://web.archive.org/web/20230104233155/http://archive.macleans.ca/article/1990/7/30/the-brash-new-kid-on-the-block |url-status=dead }}</ref>

The government implemented the deal; it was made effective on January 1, 1989. In 1994, CUSFTA was replaced by the [[North American Free Trade Agreement]] (NAFTA), which now included Mexico.<ref>{{cite web |url= http://www.fina-nafi.org/eng/integ/chronologie.asp?langue=eng&menu=integ |title= NAFTA Timeline |publisher= Fina-nafi |access-date= July 4, 2011 |archive-url= https://web.archive.org/web/20110114130328/http://www.fina-nafi.org/eng/integ/chronologie.asp?langue=eng&menu=integ |archive-date= January 14, 2011 |url-status= dead |df= mdy-all }}</ref>