Canada: The 1970s

1. Canada: The 1970s • What was going on? • The relationship between the federal and provincial governments was becoming even more strained • Separatism was on the rise in Quebec • Western provinces were developing anti-Ottawa sentiments • Economic changes were evident as well • Rising unemployment was combined with rising prices of goods and services • Caused more of strain on US involvement in CAN economy • Foreign policy –specifically in regards to helping the developing world and in peacekeeping – expanded • Women’s rights and the equality for Aboriginals was also on the increase

2. Western Discontent • Inflation: • By the 1970s, PM Trudeau was beginning to lose popularity • He managed to win the election of 1974 basing his platform on opposing his “price and wage controls”; but then he changed his mind and put them in • Prices went up (inflation) while wages were frozen • Inflation during the 1970s – 10% or higher – normal = 2 to 4% • Raises usually help curb this, however those on fixed income (retirees, pensioners, etc.) do not get this raise; buying goods and services that they need is greatly affected.

3. OPEC Crisis • OPEC: Organization of Petroleum Exporting Countries • 1972: there was a sudden increase in the price of oil when OPEC realized that the demand for oil was greater than the supply • OPEC raise the price of oil knowing that people would have to pay • Price of oil: $6 US per barrel to $16 – Today: $99.70… • In 1979, the war between Iraq and Iran caused prices to go even higher to $40/barrel • The increase in price cause the cost of all petroleum products to rise as well (anything made of petroleum) • Simultaneously, unemployment was on the rise, led to the formation of unions by teachers, nurses, police officers, etc.; did this in an effort to help increase wages • Led to government (Federal and Provincial) to increase their debts

4. The National Energy Program • In response to the OPEC crisis, Trudeau implemented the National Energy Program • This froze Alberta Oil prices below world levels to keep the price of oil down • Placed tariffs on oil sold to the United States, making up for the oil imported from the OPEC countries • This angered many Albertans, felt that they weren't getting “fair market value for any oil that they sold” • Western separation was born…

5. Trudeau Retires… • Due in part to the implementation of the National Energy Program, Trudeau was defeated by Conservative leader Joe Clark in the 1979 federal election (first PC PM since Diefenbaker) • BUT, this was short lived as Clark, who was elected on June 4, 1979 lost a vote of confidence on March 3, 1980 (his budget was shot down) • Clark was actually “ok” with this as 1979 election brought a minority gov’t, thought 1980 would = majority… • Trudeau won the 1980 election in a majority, he was back! • Trudeau then went on to make the Canadian Constitution truly Canadian • All governments (provincial) agreed except Quebec • Trudeau signed constitution into law in 1982 • He eventually retired in 1984 after 2 stints as PM (1968-79 & 1980-84) WRONG!

6. Canadian – American Relations 1970s • Economic Ties: • Ties were strong with the United States. • Auto Pact led to American Auto plants setting up in Canada • Additionally 70% of Canadian products were sold in the USA • Caused some concern, due to heavy reliance on USA (see Great Depression) • Entertainment Industries: • American music, television, and radio bombarded Canadians • PM Trudeau decided that Canadian TV and radio stations would be required to air a percentage of Canadian content (CRTC - Canadian Radio-television and Telecommunications Commission) • Also sought to promote CAN film industry, magazine & books produced in Canada through tax breaks • Some Canadians felt this turned away needed American investment, while some Americans viewed it as “unfriendly”

7. Canadian – American Relations II • Foreign Investment Review Agency (FIRA): • 1973, established by Trudeau to protect Canadian industries • Duty was to approve the establishment of any new foreign companies in Canada – it was intended to target American investment • Recent Examples: • Blackberry sale to Levono rejected by CAN gov’t • The Bay & CAN gov’t unsuccessful block of sale • NORAD: • Through the 70s Trudeau maintained Canada’s involvement in NORAD, however phased out the Bomarc Missiles and their nuclear warheads by 1971

8. Canada’s Foreign Policy • Recognition of Communist China: • 1970, Canada officially recognized the People’s Republic of China as the legal government of China • Did so before the United States • Further example of our independence • US right wing politicians labelled Trudeau as “communist” • Involvement in NATO: • Trudeau reduced number of CAN armed forced stationed in Europe under NATO • Foreign Aid: • Canada increased foreign aid to developing countries in 1970s • i.e. La Francophonie • Increased support of UN aid programs, and increased spending for aid through the Canadian International Development Agency (CIRDA), established in 1968 for helping developing nations

9. Canada’s Foreign Policy II • Trade: • Under Trudeau Canada increased their trading with Asian countries and allowed more Asian immigrants than ever before • Canada also entered trade agreements with Cuba, Mexico, and the Soviet Union (1971) • Demonstrated the shift away from adhering to American foreign policy • USA had established a trade embargo with Cuba in 1960, severing diplomatic relations by 1961 (Cold War tensions) • Refugees: • As communism spread through Europe, Canada accepted refugees fleeing communist regimes • Hungary 1956, Czechoslovakia 1968, & Vietnam in 1975