The Forgotten Father of Free Trade

If you ever cracked open the National Post you couldn’t overlook its recent weighty series on the 20th anniversary of the Canada-United States Free Trade Agreement. Though interesting, the instalments leaned heavily on the recollections of (mostly Eastern) bureaucratic types who fixated on the negotiating process minutiae and the centrality of the Ottawa-Montreal axis. Nowhere mentioned was the pivotal role played by a Westerner.

Though better known these days for his calls for greater government intervention and higher energy royalties, as well as his anguished reflections on the ostensible environmental mess created in the oilsands, Peter Lougheed was one of the original visionaries who grasped the potentially breathtaking benefits of free trade. Alberta’s premier from 1971 to 1985, Lougheed put free trade on the national stage. And although he didn’t sit at the negotiating table, he came back to help rescue the treaty when it and Brian Mulroney’s government hung in the balance.

As premier, the globe-trotting Lougheed had crossed paths with Henry “Scoop” Jackson, one of the most influential U.S. Senators. A Democrat, Jackson was both a staunch anti-communist Cold Warrior and a believer in the mutual benefits of trade. Jackson warned Lougheed of intensifying protectionist winds in Congress and the American business community. But what if, Jackson mused, there was a formal treaty between the two countries that at once freed up their trade and made it immune to eruptions of political demagogy? Having spent years fighting Pierre Trudeau’s energy policies, Lougheed understood those dangers first-hand, and eagerly latched onto Jackson’s idea.

Although free trade became inextricably linked to Mulroney, some say it was Lougheed who planted the idea in the Quebecker’s mind. Lougheed made his pitch at a first ministers’ conference in 1985. Mulroney listened intently and, rather than interrupting with his usual blarney, began nodding earnestly. It was Mulroney’s particular political genius to take a small province’s yearning for unfettered access to the U.S. market and – despite huge risks to central Canadian industries and union interests – transform it into a winning proposition in Quebec.

Elsewhere, however, free trade was unpopular, and the federal Liberals exploited the atavistic distrust of the U.S. residing in much of Canada’s population. Going into the fall 1988 election, Liberal leader John Turner declared he would tear up the free trade deal. Mulroney campaigned like a berserker – but he, his Parliamentary majority and free trade were all in deep trouble. Lougheed, who had retired as premier in 1985, swung back into action.

Lougheed began roaming the country – flying so much he became Aeroplan’s number-one points holder – giving speeches, raising funds and hectoring the nation’s business leaders to get off their butts. Many began pitching free trade to their employees, swinging thousands of votes back in favour. In the end, free trade saved Mulroney. Albertans already had their doubts about him, but we voted decisively for free trade and Alberta’s MPs put Mulroney over the top.

The rest, as they say, is history. Alberta’s exports shot from $13 billion in 1988 to $35 billion in 1999. Energy exports led the way, of course, but electrical equipment and parts, machinery and even appliances became multi-billion-dollar exports. By last year our province’s exports had zoomed to $90 billion – representing nearly 40% of its entire $236-billion economy.

French philosopher Alexis de Tocqueville commented that a free society depends as much upon the “habits of liberty” as the particular technique known as democracy. I’d say the spirit of free trade that arose during the 1980s was as important as the treaty itself. New laws, regulatory changes, political arrangements and politicians’ attitudes all promoted this spirit, unleashing Alberta’s economic potential. Natural gas, the cattle industry, the oilsands, manufacturing and more grew impressively – and all depended on the confidence and goodwill fostered by the spirit of free trade.

Although free trade today is basically taken for granted, it was no foregone conclusion. Nowadays – as old Scoop Jackson could appreciate – virtually nobody will admit to being against winning the Cold War. Similarly, everybody’s for free trade, in principle at least. But there was a time when it was uncool, risky, provocative. Peter Lougheed, visionary, was also a revolutionary.

George Koch is a Calgary-based freelance writer and commentator. More of his writing can be found at www.drjandmrk.com. Send your comments to feedback@albertaventure.com.

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