Scott W. See. The History of Canada. Second Edition

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abortive efforts to bring Quebec firmly back into the Confederation

fold. By the turn of the century, most Canadians suffered mightily

from secession fatigue, caused by endless discussions about the

country’s and Quebec’s futures and the perennial threat of

dismantlement. In many ways, Canada on the eve of the twenty-

first century embodied the strengths and weaknesses of a modern

nation-state.

210 The End of Cold War Canada?

Chapter 10

Late Twentieth-Century

Canada (1984–2000)

The Challenges of Nationhood

From the 1980s to the turn of the twenty-first century Canada

faced the challenges of a mature nation in the modern world. The

accelerating globalization of economies, trade, and culture placed the

country at a crossroads. After a second referendum on separation in

Quebec in the mid-1990s, polls indicated that almost one in three

Canadians and one in two Québécois assumed that by 2000, the

country’s current form would cease to exist. Moreover, traditional

divisions between francophones and anglophones increasingly

became an unsatisfactory way to understand the pivotal issues

that underscored the country’s political and social debates. By the

late twentieth century, Canada had become a truly multicultural

society. To cite only one example, Toronto, known in the nineteenth

century as an anglophone and Protestant bastion, had become one

of the most ethnically diverse cities on earth by 2000.

Canada remained firmly entrenched as one of the world’s eco-

nomic powerhouses, yet various factors drew the country even closer

into the American orbit. By the 1990s the strident suspicions of

American intentions that had been voiced by John Diefenbaker and

Pierre Trudeau seemed to be curious sentiments from the past. Indeed,

Canada had become part of an international arena where crucial

The Challenges of Nationhood 211

A drilling platform being towed to the Hibernia oil field, taken above Trinity Bay,

Newfoundland, in 1997.

Source: Associated Press / Jonathan Hayward

decisions that affected the country could be made in London, Tokyo,

or New York as easily as in Toronto, Montreal, or Vancouver. At the

end of the Cold War, Canadians searched for new meanings and roles

in a world riddled by localized and bloody struggles, but at least for

the moment relieved of the prospect of a superpower nuclear

confrontation. Canada would not be alone in experiencing growing

pains and coping with a confusing array of directional signals about

where to head in the future. Undeniably some of these issues were

unique, molded in large part by the country’s complex history. Yet in

other important ways the “best nation on earth” had become the

global equivalent of “every country.”

The Conservative Impulse

Canada experienced one of its most dramatic changes ever in political

orientation after the collapse of the Liberal mandate in 1984. The

resounding return of the Progressive Conservatives under Brian

Mulroney, a fluently bilingual lawyer and businessman from Quebec,

was comparable to the right-wing movements that swept many other

Western democracies in the 1980s. British Prime Minister Margaret

Thatcher and U.S. President Ronald Reagan were models of the new

conservatism. Mulroney’s party ran a campaign that promised

spending cuts and negotiations with Quebec so that it would agree

to the new Constitution. Significantly, and in contrast to the tough

social policies of Thatcher and Reagan, Mulroney and many other

Conservatives understood that most Canadians valued their expan-

sive social and medical programs. Nonetheless, privatization became

a watchword of the new order, and adamant Conservatives wanted

to cut into the social network to help bring down the deficit.

A full plate of problems awaited the newly installed Conserva-

tives. With unemployment soaring to over eleven percent, a crippling

inflation rate, and a frightening deficit, the government attempted to

implement radically different fiscal policies. Emblematic of the new

direction was the revamping of Trudeau’s Foreign Investment Review

Agency (FIRA). Born of the idea that the price for indiscriminately

accepting investment capital was not worth the dilution of Canadian

sovereignty, FIRA was given a mandate that was the polar opposite of

The Conservative Impulse 213

its initial spirit. Later called “Investment Canada,” it encouraged

foreign investment. Similarly, the National Energy Program, the bane

of westerners who considered the program an example of improper

federal interference, was essentially gutted.

Although Mulroney prided himself on his negotiating skills, his

administration swiftly resembled some of the scandal-ridden govern-

ments of his predecessors. Two issues during his years in office from

1984 to 1993 absorbed the bulk of his government’s energies.

Attempts to improve relations with Quebec dominated his domestic

endeavors, and free trade discussions with the United States and later

Mexico overshadowed his foreign policy. The failure to come up with

a workable proposal to bring Quebec’s signature to the Constitution

and the success in intertwining the economies of Canada and the

United States became Mulroney’s legacy. Interestingly, his actions

placed him on a trajectory that was similar to that of recent leaders

such as Diefenbaker and Trudeau. Mulroney’s politics and person-

ality combined to explain his plummet from enjoying overwhelming

popular approval to becoming one of the most reviled political figures

in the entire scope of Canadian history.

A Distinct Society?

Mulroney sought a federal reconciliation with his native province,

and René Lévesque’s retirement in September 1985 led to a chain of

events that opened the door to discussions on Quebec’s position in

Canada. Lévesque’s replacement, Pierre Marc Johnson, promptly lost

an election to the resurgent Liberals. Remarkably, given his low level

of popular support when he was ousted in 1976, Robert Bourassa

became premier once again. With the separatist Parti Québécois no

longer in power, the conditions for a dialogue had improved. In

spring 1987 Mulroney and the ten provincial premiers engaged in a

series of meetings in Ottawa and at a nearby government retreat at

Meech Lake. After marathon sessions the so-called first ministers

came up with a list of proposals that, if the provinces and federal

government gave their approval by June 1990, would ensure

Quebec’s agreement to the Constitution. The Meech Lake Accord

suggested innovations in choosing Supreme Court justices and

214 A Distinct Society?

senators, changes in the Constitution’s amendment procedures, and

expanded language for provinces that wished to use the opting-out

clause. Most important, it included a phrase that became the key

sticking point for its opponents: Quebec would be recognized as a

“distinct society.”

The battle to pass the Meech Lake Accord in Parliament and the

legislatures of the ten provinces broke out immediately. Proponents

argued that the accord was reasonable and necessary to bring Quebec

back into the Confederation fold. Opponents ranged widely in their

viewpoints. Staunch federalists such as former prime minister Trudeau

claimed that the accord would erode the powers of the federal

government. Quebec separatists maintained that it did not adequately

protect the province’s special needs. Other groups, including First

Nations, pointed out that they also deserved the constitutional pro-

tection of their distinct rights. Opponents were in general agreement

that the process of having a handful of politicians, all white males,

determine the country’s future was fundamentally flawed.

Several events undermined and ultimately defeated the accord. In

1988 the Canadian Supreme Court agreed with several Quebec court

decisions and found parts of Bill 101, Quebec’s key French-language

law, in violation of the Charter of Rights and Freedoms. Bourassa’s

government angered anglophones by invoking the Constitution’s

notwithstanding clause and passing Bill 178. This complicated sign

law reinforced the use of French in businesses and permitted bilingual

signs inside stores only if French remained prominently displayed. In

addition, the weakness of having the first ministers complete the

nation’s business was exposed when several of the premiers who had

been at Meech Lake lost their next elections. The new leaders in New

Brunswick, Manitoba, and Newfoundland, for example, stated that

they were not bound to the accord’s terms. Ultimately the Meech

Lake Accord collapsed in 1990 because of its built-in termination

clause. Manitoba and Newfoundland failed to ratify it. Elijah Harper,

a Cree member of the Manitoba legislature, received national

attention by blocking the accord vote on a procedural issue because

Native peoples had been excluded from the negotiations.

As a tribute to the dedication, or perhaps the obstinance, of the

Mulroney government, the country was given another chance to

solve the constitutional dilemma. A series of meetings transpired from

1991 to 1992 between federal and provincial ministers, as well as

A Distinct Society? 215

representatives from First Nations and other interest groups. These

sessions symbolically ended in Charlottetown, Prince Edward Island:

the birthplace of Confederation. The intense negotiations produced a

more complex package of proposed constitutional changes than did

the Meech Lake Accord. Westerners pushed for a reformulated “Triple

E” Senate, meaning equal, elected, and effective. Given the body’s

traditional composition, Ontario and Quebec received the most

senators, while western provinces were entitled to fewer senators

than some of the Atlantic provinces. Native peoples insisted on the

inclusion of the “inherent right to self government,” the meaning of

which was ambiguously defined. Importantly, the agreement borrowed

from the Meech Lake Accord in describing Quebec as a distinct society.

The meaty Charlottetown Accord, as it was called, was duly printed in

both official languages and distributed to Canadian citizens.

The package was put to a national referendum on October 26,

1992, only the third such event in the country’s history. Supporters

included the leaders of the three major political parties, all the

premiers, and a host of influential business, labor, and cultural

activists. The opposition also varied. Many Québécois argued that

the proposal did not go far enough to ensure Quebec’s rights. First

Nations were divided on the issue. Other groups wanted more

assurances to protect their rights. Many Canadians had grown to

despise Mulroney’s initiatives, including the immensely unpopular

Goods and Services Tax (GST), so they responded negatively to his

latest plan to bind the wounds of Quebec and Canada. Almost fifty-

five percent of the country’s voters rejected the proposal. It received a

favorable majority in only three of the Atlantic provinces and

Ontario. Exhausted by years of discussions, cynical about the

process, and frustrated by the constant threat of dismemberment,

Canadians seemed to retreat from the issue after the failure of the

Charlottetown Accord. As of 2000, Quebec has not signed the

Canadian Constitution under which it effectively operates.

Going with the Flow: Free Trade

The other major initiative of Mulroney’s Conservative government

was driven by economic forces that had been developing since the

nineteenth century. Despite the attempts of various governments to

216 Going with the Flow: Free Trade

alter the patterns, Canada’s economy by the 1980s was intricately

tied to American markets and investments. Eighty percent of

Canada’s exports went to the United States, and about seventy

percent of its imports came from the same country. One out of three

Canadian workers earned a living that was defined by trade with

Americans. Thus, there were compelling reasons to strengthen

economic linkages. Mulroney and Reagan, already in agreement on

many ideological issues, met in Quebec City in 1985. During this so-

called “Shamrock Summit” the two leaders shared stories of their

common Irish heritage and set the symbolic stage for a discussion

about dropping the remaining tariff barriers between the two

countries.

Negotiators from Canada and the United States delivered a

massive free trade proposal in 1987. Running to three thousand

pages, it called for the removal of tariffs within ten years of the

proposal’s acceptance by both parties. The Liberal-dominated Senate

balked at the agreement, forcing the issue onto center stage during

the 1988 elections. The campaign of that year in many ways evoked

images of the 1911 reciprocity election, with the important exception

that the political parties had reversed roles. Opposed to free trade

were protected businesses and staple producers, laborers who feared

losing their jobs, and people who were concerned that the country’ s

sovereignty would be eroded as a result of the agreement. As key

Liberal opponent John Turner famously proclaimed during a free

trade debate, Mulroney’s plan had “sold out” Canada (see “An

Argument Against Free Trade” in the Documents section).

Despite these alarmist sentiments, Canadian voters returned

the Conservatives to a second government. With the electorate’s

apparent approval, the agreement was implemented in 1989.

Virtually all of the tariff barriers between the two countries would

be dismantled by the turn of the century, with the exception of

protections for Canadian cultural industries and selected agricultural

products and resources. Plans to clarify a dispute resolution

mechanism fell through, however, and the important issue of

government subsidies to industries remained unresolved. Negotia-

tions to include Mexico in a similar trade arrangement began

immediately. In 1993 the three countries formalized the North

American Free Trade Agreement (NAFTA). Since their implementa-

tion, free trade and NAFTA have received mixed reviews. Many

Going with the Flow: Free Trade 217

Canadians blame job losses and ailing sectors of the economy on the

agreements. Others claim that business is booming without tariffs.

By the turn of the century some trade disputes remained unresolved,

such as a particularly tense series of charges and countercharges

about national subsidies in the softwood industry. Although the

long-term impact of the agreements awaits a future generation’s

assessment, they clearly boosted the already strong trade relationship

between Canada and the United States at the close of the twentieth

century. In 1997 eighty-one percent of Canada’s exports headed to its

neighbor, and seventy-six percent of its imports poured across the

American border.

Canada and the World at the Turn

of the Twenty-First Century

By the 1990s Canada had achieved a stature as one of the world’s

greatest democracies and economic leaders. Two world wars, Cold

War alliances, and global trading patterns had increased the

country’s potential markets for its numerous primary materials. Yet

developing countries, many of them also rich in resources such as

forest products and minerals, aggressively competed with Canadian

producers. Canadians struggled to adjust to the new realities of the

“post” era: the post–Cold War and postindustrial environments

thoroughly reshuffled the international deck. Traditional Canadian

concerns about protecting the country’s sovereignty were grafted

onto modern ideals of trade without boundaries and corporate

mergers.

In many ways, the architects of Canada’s middle power ideal

during World War II would have been pleased by the country’s global

position a half-century later. A founding member of the UN, the

country had served on the Security Council and been active on

organizations such as the World Food Program and the Children’s

Fund. Its cultivated role as a reliable peacekeeper since the 1950s had

been the source of tremendous national pride. Canadian peace-

keepers had served in over thirty separate missions in the Caribbean,

Central America, Africa, the Middle East, Asia, and the Pacific.

Tragically, on an assignment to Somalia in the 1990s some Canadian

218 Canada and the World at the Turn of the Twenty-First Century

soldiers tortured and murdered a young Somalian. Televised pictures

of the victim and the resulting scandal sullied the country’s

peacekeeping image and reminded Canadians that their troops

were not immune from committing atrocities. Canadian forces also

provided modest support in attacking Iraq after it invaded neighbor-

ing Kuwait in August 1990. The Gulf War was mostly a United

States’ undertaking that was essentially designed to protect the flow

of oil from the Middle East, but it was authorized by the UN Security

Council. Canada sent three ships and a squadron of fighters to join an

international force in the troubled region. When some Canadian

pundits cynically pointed out that an extraordinary proportion of the

country’s military had sailed off to the Middle East, they were not far

off the mark. By the late 1990s the Canadian armed forces numbered

about 60,000 active personnel. In the post–Cold War era, Canada’s

military had become minuscule. In 1995 tensions flared when a

Canadian naval vessel fired a shot over the bow of a Spanish trawler

that had been taking fish in protected offshore waters. Fisheries

minister Brian Tobin, a feisty Newfoundlander, achieved popular

fame as “Captain Canada” by staunchly and at times belligerently

defending the country’s interests in negotiations with Spanish

diplomats.

Canada maintained connections to a number of international

organizations besides the UN in the closing decades of the twentieth

century. It remained a member of NATO and continued to staff a

small military contingent in Europe, but its role in the alliance

diminished significantly after the Cold War ended. In 1980 the

country belatedly joined the Organization of American States (OAS),

an association with roots in the nineteenth century that was designed

to promote hemispheric relations. Canada remained an important

part of the Commonwealth, the fifty-four countries that evolved

from the former British Empire. Commonwealth activities included

financial programs, educational exc hanges, and sporting events.

Similarly, Canada actively contributed to La Francophonie, an

organization of French-speaking countries that encourages cultural

and economic linkages between its members.

A participating member of the General Agreement on Tariffs and

Trade since the late 1940s, Canada also fostered international trade.

Besides its partnership with the United States and Mexico, Canada

traded heavily with Japan, the United Kingdom, Germany, South

Canada and the World at the Turn of the Twenty-First Century 219