David M. Culver and Thomas P. d’Aquino Thursday, October 4, 2012 Bold executive leadership was crucial to free trade deal In the lead-up to the 25th anniversary The story begins with a meeting of the of the Canada-United States Free Trade Business Council on National Issues Agreement, generous plaudits accorded (BCNI), today known as the Canadian to then prime minister Brian Mulroney Council of Chief Executives (CCCE), in are richly deserved. His ambition and Toronto on Jan. 21, 1982. The country courage resulted in an historic was feeling the effects of a deep achievement that changed the face of recession and protectionism was on the Canada. The prime minister’s success rise in the United States. Free trade was aided by a cadre of able ministers with our American partner was seen by and officials. Among the stars, to name some of us as a way of boosting a few, were Michael Wilson, Don economic growth, exports and domestic Mazankowski, John Crosbie, Pat competitiveness. The prospects for a Carney, Simon Reisman, Gordon deal of this size with the United States, Ritchie, Derek Burney and Allan however, looked bleak. No federal party -Gotlieb. supported the idea, senior officials with few exceptions were deeply skeptical, It is a given that great national and most notably, Canada’s Toronto- undertakings owe their success to more centric business leadership was for the than a few at the apex of political most part wary. power. In the case of the Canada- United States Free Trade Agreement, Nevertheless, the assembled CEOs the Canadian business community can agreed that “a comprehensive justly claim a significant share of agreement that liberalizes trade across responsibility for the outcome. From the board is worth pursuing. the earliest days of the initiative [Specifically if] It offers the promise of through to its triumph in the single- increased commerce between our two issue election of 1988 and its countries, improved access for our implementation on Jan. 1, 1989, exports, more competitive companies Canada’s business leadership was bold, and workers, and an improved rules- creative and engaged. based regime to deal with disputes.” A commitment in principle now had to be deserved study. At the same time we translated into a concrete set of began to cultivate support from among proposals. Following six months of senior members of the American CEO research and consultations, the BCNI community. membership responsible for the vast majority of Canada’s investment, The advent of the Mulroney exports and R&D, was solidly on side. government in 1984, followed by the Macdonald Royal Commission “leap of On the other hand, efforts to win faith” recommendation in November support for our position in political 1984, and the “Shamrock Summit” in circles were largely unsuccessful. At March 1985, set the course for the free best, the Trudeau government was trade negotiations that resulted in a prepared to seek sectoral free trade signed agreement on Jan. 2, 1988. agreements with the Americans, an Along the way, the Canadian business initiative that had little traction. community played a critical role, in (Cabinet ministers Ed Lumley and part through offering constructive Gerald Regan behind the scenes were advice. A memorable example was quietly encouraging the BCNI to pursue when the BCNI presented a startled our more ambitious goals.) One notable Simon Reisman, barely one day into his exception in a sea of doubters was job as chief negotiator, with our Alberta Premier Peter Lougheed, who council’s version of the draft endorsed our position and helped to agreement. Another example was rally support among fellow premiers in through the work of the International Western Canada. Another notable Trade Advisory Committee and its exception was the ebullient Liberal sectoral companion committees. Senator George Van Roggen, who chaired a Senate committee that was on These highly productive committees record as favouring free trade provided for small, medium and large negotiations with the United States. enterprises to channel their views to ministers and officials. The Canadian Recognizing that a free trade business community’s most vital agreement was a pipe dream without contribution to getting free trade over American support, we turned our the top came in March 1987 with the attention to the United States. We met launch of the Canadian Alliance for in Toronto with Reagan cabinet Trade and Job Opportunities (CATJO). secretary William Brock, who signalled Conceived, organized and financed by the administration’s interest. In March BCNI and its member companies, 1983, at a private meeting at the CATJO was created to marshal broad Chateau Laurier in Ottawa chaired by non-partisan support for the free trade BCNI chairman and Royal Bank CEO agreement at a time when opposition Rowland Frazee, we proposed the idea throughout the country was growing. of a comprehensive Canada-United We invited Peter Lougheed and Donald States free trade agreement with then Macdonald to co-chair the alliance and vice-president George H.W. Bush. His we signed up some 35 business response was that it had merit and organizations as members, including the Canadian Chamber of Commerce The free trade agreement at the time and the Canadian Manufacturers was hailed as the most ambitious Association. bilateral accord ever negotiated and set the stage for the negotiation of the even The work of the alliance was buttressed larger North American Free Trade by scores of prominent academics and Agreement. Many hundreds of the alliance’s advocacy efforts reached Canadian business leaders were out to all parts of Canada and even into directly involved in helping free trade the United States. Some chroniclers of with the United States become a reality. the free trade saga credit CATJO with playing a decisive role in the 1988 At this time of celebration, it is electoral outcome. Whether or not this appropriate to invite Canadian is the case, it involved the most active business to take a well-deserved bow. public engagement of the business community on a single public policy Financial Post issue in Canadian history. David M. Culver is former chairman We believe that the enactment of the and chief executive, Alcan Aluminum free trade agreement above all else Ltd. and former chairman of the changed the mindset of Canadians. It Business Council on National Issues, prompted our governments to embrace 1986-1989. Thomas P. d’Aquino is the benefits of an open economy, it former CEO of the Business Council on spurred higher value in our Canadian National Issues/Canadian Council of exports, it jolted Canadian companies Chief Executives 1981-2009. into looking beyond our national borders and to the world, it helped prepare our workforce for the onslaught of globalization that was to come, it made Canadians more confident that we could compete and win in a globalized world. .