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

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.

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

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…

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 ( & )

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”

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

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

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