Canada split over U.S. trade deal

Press, 30 September 1988, Page 8

Canada split over U.S. trade deal

NZPA-Reuter Ottawa The fate of the North American free trade deal now rests in Canadian hands, but approval of the pact is uncertain at best as the country remains seriously split over the issue. President Reagan yesterday signed the sweeping deal that proposes to tear down remaining barriers between the world’s largest trading partners. U.S. legislation implementing the deal with Canada sailed through Congress with only limited opposition. In Canada the deal has received a rocky reception since Conservative Prime Minister Brian Mulroney signed the initial treaty with President Reagan in January. Canada’s two opposition parties, perhaps playing to the assortment of groups

opposing the agreement, have launched strong campaigns to block passage of the required legislation. Opposition Liberal leader John Turner stunned the country with the announcement the party would use its majority in the unelected Senate to block the pact until an election is called on the issue. The legislation has been passed by the elected House of Commons, where the Conservatives hold a majority. Mulroney has called Turner’s move an outrage and has boasted he would love to fight an election on the issue. An election is widely expected to be called in the next few days for a late November vote. Turner, meanwhile, remains undaunted in his

battle to block the deal. “And, as I have clearly said before and will repeat throughout this campaign, we will say ‘No’ to Brian Mulroney’s sell-out trade deal ...,” Turner said. Political analysts believe the trade agreement will be front and centre in the coming campaign and will probably intensify the already searing national debate over the issue. The crux of the opposition, as espoused by labour and cultural organisations, is that Canada will be overwhelmed by its giant southern neighbour. Canadian business largely supports the deal, arguing that with nearly 80 per cent of the country’s exports going to the U.S., the country has much to gain from winning secure access.