POLITICAL DEVELOPMENTS IN THE AMERICAS AFTER THE SECOND WORLD WARBrian Mulroney

1984-1993

Martin Brian Mulroney• Born March 20th, 1939, in Quebec to an Irish family• Part of an English-speaking Catholic minority, but learned

French in childhood• For many years refused to run for office, but still active in

Conservative Party

Mulroney• Canada’s 18th Prime Minister• Was president from September 17, 1984

– June 25, 1993• Leader of the Progressive Conservative

Party• “charming” & “charismatic”• Promised to being Quebec into

constitution, less government intervention, make Canada more economically competitive and stronger Canada-US ties

• Won 211 seats, 58 in Quebec (largest majority in Canadian history)

• Canada’s “greenist Prime Minister”

Failures and Retirement• Announced retirement in February 1993• Failures:

• Constitutional Failure (Meech Lake Accord)• Economic recession• Public anger over free trade and GST

DOMESTIC POLICIES

The National Energy Program• Implemented by PM Trudeau in 1980• NEP was created to gain more federal control over the energy

industry.• 3 main goals: increase the federal share of energy revenues, boost

Canadian ownership in the oil industry, and make Canada self-sufficient as an oil producer.

• Policies such grants to increase oil drilling in remote areas, new taxes on oil industry, expanded role of Petro Canada and increase government share of oil revenues.

• NEP based on world oil prices would continue to rise indefinitely, however they did not and eventually fell.

• Extremely unpopular in Alberta• Mulroney ended the NEP to appease the West.

Meech Lake Accord • Mulroney attempted to persuade the provincial government of

Quebec to endorse the 1982 constitutional amendment.• Would also increase support to keep Quebec in Canada.• The accord was negotiated at Meech Lake in Quebec in 1987, where

the 10 premiers and Mulroney met. • Would recognize Quebec as a “distinct society”, give a constitutional

veto to all provinces, increased provincial powers in regard to immigration, the right for financial compensation to provinces that opted out of federal programs and provincial say influence in the appointment of senators and Supreme Court judges.

• First Manitoba did not agree to the Accord and the ratification date was moved over three months by Newfoundland would not agree to ratify the Accord and it would disintegrate.

• The Accord was a failure and it also had the side effect of reinvigorating the separatist movement in Quebec.

Goods and Services Tax• Prior to the creation of GST, the Manufacturer’s Sales Tax was in

place.• MST was at 13.5% and was applied to the wholesale level on

manufactured goods. Manufacturers felt that the tax hurt their international competitiveness.

• GST was to be a national sales tax at 9% that would replace MST. • It was heavily opposed by both the public as well as the Liberal

dominated Senate. However Mulroney used a little known constitutional power that allowed him to increase the number of senators by eight temporarily and was able to pass the GST, which he had dropped to 7%.

• The tax was applied on January 1, 1991.

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Charlottetown Accord• Following the Meech Lake Accord, the Charlottetown Accord (1992,

Charlottetown, P.E.I) dealt with many of the same issues as in the Meech Lake accord.

• Basically gave the provinces more powers and less Federal responsibility.

• Had the Canada Clause -> values to define the nature of the Canadian characters, such as equality for all people, diversity and the recognition of Quebec as a “distinct society”.

• Unlike the Meech Lake Accord, the Charlottetown Accord would be ratified through a referendum.

• However the vote resulted in 54% voting no and the Accord failing to be ratified.

Other Domestic Changes and Challenges• Near the end of his first term, Mulroney gave a formal apology and

monetary compensation to the families of the Japanese Canadians who were interned during World War II.

• During Mulroney’s second term, Canada was hit by an economic recession. The GST was an attempt to help bring Canada out of the recession.

• The declining number of cod in Atlantic Canada lead to Mulroney to impose a moratorium (a suspension of an activity or law) on cod fishery which had a devastating impact on the fisheries in Newfoundland and causing serious economic hardship there.

Additional Domestic Changes:• Canadian Multicultural Act:

• July 21, 1988• All Canadian citizens have the right to stay in Canada• To promote immigrants and Canadians to work together

• Nunavut Land Claims Agreement• January 1, 1993• Allowed natives to claim the land and have responsibility over it

FOREIGN POLICIES

Shamrock Summit• 1985• U.S., Canada Agree to Fight Acid Rain• Appointed special ambassadors to clean up acid rain• Mulroney proposed a $1.5-billion plan to strengthen the

nation's automobile-emission controls to match U.S. standards

• It moved acid rain as an issue off "the back burner”

Prime Minister Mulroney and President Reagan singing When Irish Eyes Are Smiling during the Shamrock Summit.

Former U.S. resident Ronald Reagan and former prime minister Brian Mulroney at the Shamrock Summit in Quebec City on March 18, 1985.

Canada-United States Free Trade Agreement (FTA)• October 4 1987• Elimination of most tariffs• Reduction of many non-tariff barriers• Addressed trade in services• Removed bilateral border measures on traded goods• Which included:

• Removal of tariffs on goods such as meat products, live animals, wine, clothing and textiles, as well as most agricultural products

• Resources such as water were left out of the agreement.

• Between 1990 to 19991, the value of the Canadian dollar was higher than the U.S.’s

• During this time, ‘cross-border shopping’ became popular.• However in the mid-to-late 1900s, the American dollar

value surpassed Canada’s. • Canadian primary products (i.e. lumber, oil, etc) could be

bought tariff-free by Americans.• The removal of tariffs meant that currency values had a

greater effect on the economies than it would have with tariffs.

• Led to the Canada- United States softwood lumber dispute

Copyright 2009 KoKo Press Inc

Copyright 2009 KoKo Press Inc.

North American Free Trade Agreement (NAFTA)• Negotiation began in 1990• Between Canada, the U.S. and Mexico• Largest free trade area in the world.• Established a strong foundation for growth• Officially executed on January 1 1994

Other Foreign Actions• Contributed to end of apartheid in South Africa• Sent Canadian troops for peacekeeping in the Gulf

War

Works Cited • "Shamrock Summit seen as 'turning point' for U.S.-Canada

relations." CBC News. CBC News, 10 Nov 2000. Web. 6 Apr 2013. • SKELTON, GEORGE. "Reagan, Mulroney at 'Shamrock Summit' :

U.S., Canada Agree to Fight Acid Rain." Los Angeles Times. (1985): n. page. Web. 6 Apr. 2013.

• "Canada-United States Free Trade Agreement (FTA)."Foreign Affairs and International Trade Canada. Canada, 15 Jan 2013. Web. <http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/us-eu.aspx?lang=eng>. 

• "North American Free Trade Agreement (NAFTA)."Foreign Affairs and International Trade Canada. Canada, 4 Dec 2012. Web. <http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/>.