POLS 375 Lecture Notes - Donald Stovel Macdonald, National Energy Program, Macdonald Commission

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9 Feb 2013
Ronald Reagan helped increase tensions in the Cold War with his nonsensical
rhetoric and his decision to build up the military.
Trudeau, if you hate him… or actually like him, was a snob… and he
thought of himself as brilliant.
Trudeau did not think Reagan was "brilliant."
Reagan and Trudeau do not like each other that much… if at all.
Trudeau also publicly rebuked the U.S. in the United Nations for invading
Grenada (a Commonwealth country).
At this time, the U.S. was steadily becoming more right-wing while Canada was
getting closer to Soviet-linked groups, including Fidel Castro.
John Turner replaces him, and had the unfortunate task of going against
Mulroney, who crushes him…
When Trudeau finally (actually) retires in 1984, foreign policy in Canada takes a
different direction.
Alberta is upset about it.
The U.S. hated it because it was protectionist.
Ontario enjoyed it.
Mulroney eventually got rid of the National Energy Program.
He develops a personally-good relationship with Reagan… enough to sing
with him.
This seemed to favour Americans.
Nobody gave a damn about free trade in the U.S. while free trade was
rather unpopular with Canadians.
In Canada, Conservatives had been traditionally protectionist.
The 1988 election was largely a free trade election… and the Progressive
Conservatives win a false majority (about 40%).
Mulroney eventually decides to rebuild the military and attempts to rescue
relations with the U.S.
In 1988, Mulroney was able to use this against the Liberals.
Before Trudeau retired in 1984, he appointed a royal commission (Macdonald
commission) led by former Liberal cabinet minister Donald Stovel Macdonald
that suggested free trade.
There is a recognition that economic integration can lead to benefits for
As a result, there are no Canadian automakers.
Because of economies of scale, Canadian factories weren't as
productive and cars were more expensive.
As a result, car prices in Canada went down.
For every car imported into Canada, one must be made in
The pact basically said we'd get rid of all tariffs on cars.
In 1965, it was a free trade agreement involving Canadian cars.
The Auto Pact: one of the first quasi free trade agreements with the U.S.
Every time the Americans get antsy protectionism, Canada usually
gets terrified.
Fear of U.S. protectionism.
At this time, Canada is the only country in the G7 who does not have
access to a market of 100 million people or more.
We were becoming more and more integrated with the United States, despite
efforts not to.
Mulroney Comes to Office
New Directions: Trudeau and Mulroney?
9:31 AM
POLS 375.3 Page 1
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