It was also the first Canadian election to use a lot of negative publicity; An anti-free trade ad showed how negotiators “removed a line” from the free trade agreement, which was revealed at the end of the advertisement as the border between Canada and the United States. Although some polls showed slightly more Canadians against the deal than for that, Mulroney`s progressive Conservatives enjoyed being the only party in favour of the deal, while the Liberals and the NDP split the anti-free trade votes. In addition, the future premiers of Quebec, Jacques Parizeau and Bernard Landry, supported the agreement, considered a factor of support for the PC Party in Quebec.  Mulroney won a government majority and the agreement went into effect, even though a majority of voters had voted for parties opposed to free trade.   In May 1986, Canada and the United States began negotiations for a bilateral free trade agreement. An agreement was reached in October 1987. It became Canada`s most important election theme in the fall of 1988. The Conservative government of Prime Minister Brian Mulroney supported the agreement and won the election; the Agreement entered into force on 1 January 1989. The agreement has not liberalized trade in certain areas, including the ongoing coniferous timber dispute. Issues such as trade in mineral, freshwater and coniferous timber remain controversial. However, between the late 1990s and the late 1990s, the Canadian dollar fell to record levels against the U.S. dollar.
Cheaper Canadian precursors, such as lumber and oil, could be purchased duty-free by the Americans, and Hollywood studios sent their teams to make many films in Canada because of the cheap Canadian dollar (see “Runaway Production” and “Hollywood North”). The removal of tariffs has meant that market forces, such as monetary values, influence the economies of both countries more than tariffs. NAFTA does not change the three-stage exit from tariffs for goods traded between the United States and Canada. No real progress has been made in determining allowable subsidies or eliminating the applicability of anti-dumping and countervailing duty legislation. Canada and the U.S. had agreed to work more on these issues, but that did not come to fruition under the free trade agreement. However, during the Uruguay Round of the GATT world negotiations, stricter rules on dumping were developed and authorised and unauthorized subsidies were defined. From 1935 to 1980, the two nations concluded a series of bilateral trade agreements that sharply reduced tariffs in both countries.
 The most important of these agreements was the Automotive Products Trade Agreement of the 1960s (also known as the Auto Pact).   Over the next two decades, a number of academic economists have studied the effects of a free trade agreement between the two countries. Several of them – Ronald Wonnacott and Paul Wonnacott, Richard G. Harris and David Cox – concluded that Canadian real GDP would increase significantly if U.S. and Canadian tariffs and other trade barriers were eliminated and that Canadian industry could therefore produce more widely and efficiently. Other economists on the free trade side were John Whalley of the University of Western Ontario and Richard Lipsey of the C.D. Howe Institute.  Products that covered 35% of the additional customs products were included in a five-year elimination programme, with customs duties from 1 1989 being reduced by 20% per year. Aftermarket car parts, chemicals, furniture, explosives, colors, a little meat, paper, subway cars and telecommunications equipment were some of the products covered….