Canada–United States Free Trade Agreement in the context of "NAFTA"

The North American Free Trade Agreement (Spanish: Tratado de Libre Comercio de América del Norte, TLCAN; French: Accord de libre-échange nord-américain, ALÉNA), referred to colloquially in the Anglosphere as NAFTA, (/ˈnæftə/ NAF-tə) was an agreement signed by Canada, Mexico, and the United States that created a trilateral trade bloc in North America. The agreement came into force on January 1, 1994, and superseded the 1988 Canada–United States Free Trade Agreement between the United States and Canada. The NAFTA trade bloc formed one of the largest trade blocs in the world by gross domestic product.

The impetus for a North American free trade zone began with U.S. president Ronald Reagan, who made the idea part of his 1980 presidential campaign. After the signing of the Canada–United States Free Trade Agreement in 1988, the administrations of U.S. president George H. W. Bush, Mexican president Carlos Salinas de Gortari, and Canadian prime minister Brian Mulroney agreed to negotiate what became NAFTA. Each submitted the agreement for ratification in their respective capitals in December 1992, but NAFTA faced significant opposition in both the United States and Canada. All three countries ratified NAFTA in 1993 after the addition of two side agreements, the North American Agreement on Labor Cooperation (NAALC) and the North American Agreement on Environmental Cooperation (NAAEC).

Canadian nationalism (French: Nationalisme canadien) has been a significant political force since the 19th century and has typically manifested itself as seeking to advance Canada's independence from the influence of the United Kingdom and United States. Since the 1960s, most proponents of Canadian nationalism have advocated a form of civic nationalism that seeks to equalize citizenship for Canada's multicultural society. In particular, proponents seek to unite English-speaking Canadians with the Québécois and other French-speaking Canadians, who historically faced cultural and economic discrimination and assimilationist pressure from the English Canadian–dominated federal government. Canadian nationalism became an important issue during the 1988 federal election that focused on the then proposed Canada–United States Free Trade Agreement, which Canadian nationalists opposed on the basis that it would in their view lead to the inevitable assimilation and domination of Canada by the United States.

During the 1995 Quebec referendum to determine whether Quebec would become a sovereign state or remain in Canada, Canadian nationalists and federalists supported the "no" side while Quebec nationalists supported the "yes" side, resulting in a razor-thin majority in favour of the "no" side.

The 1988 Canadian federal election was held on November 21, 1988, to elect members to the House of Commons of Canada of the 34th Parliament of Canada following the dissolution of the House on October 1. It was an election largely fought on a single issue, the Canada–United States Free Trade Agreement (CUSFTA); the Progressive Conservative Party campaigned in favour of it, whereas the Liberal Party and the New Democratic Party (NDP) campaigned against it.

The incumbent Progressive Conservative Party, led by Brian Mulroney, was reelected with a second majority government, although based on less than half the votes cast. Mulroney was the party's first leader since John A. Macdonald to win a second consecutive majority government. Additionally, this election was the last election in which the Progressive Conservatives would poll over 40 percent of the vote, as this would not recur until 2025, under the banner of the Conservative Party of Canada.