Late 20th Century

Quebec's long-standing dissatisfaction with its relationship to the federal government, plus its deep-rooted isolationism, led to the rise of an organized French-Canadian nationalist movement in the 1960's. Some French Canadians argued that Quebec was so dominated culturally and economically by English-speaking Canada that it could achieve equality only by becoming independent. The Parti Québécois, formed in 1968 by the union of two earlier separatist parties and headed by René Lévesque, led the move for separation from Canada.

The federal government attempted by various means to address the grievances of French-speaking citizens. In 1965 it adopted a new, non-British flag. (The previous flag had been based on the Union Jack.) Also, Montreal was designated the site of Expo 67, an international exposition held in 1967 to celebrate Canada's 100th year of confederation. In 1969 French was made an official language of Canada. Separatists, however, continued to demand that Quebec become independent.

The defeat of separatist candidates in the 1970 provincial elections led to the “October Crisis.” Extremists who called themselves the Front de liberation du Québec kidnapped a British diplomat and murdered a Quebec cabinet minister. The federal government, under Prime Minister Pierre Trudeau, a French Canadian, responded to these events by imposing the War Measures Act. It gave broad powers to the police and military to arrest and detain suspected terrorists, and led to a defusing of the crisis.

During the 1960's and 1970's, there was an increasing desire in Canada to be independent of foreign influence, especially that of the United States. During two successive Liberal governments, headed by Lester B. Pearson (1963–68) and Trudeau (1968–79), measures that placed restrictions on foreign ownership of Canadian industry, resources, and media were adopted. Canada also pursued an independent foreign policy.

By the 1970's, Canada had become one of the world's major manufacturing and trading nations, exporting about one-fourth of what it produced. It expanded economic ties with the European Community (now known as the European Union), the nations of the Far East, and Latin America.

In the 1970's, Inuits and Indians joined forces to press for federal recognition of aboriginal land claims and to seek compensation for those lands that had been unjustly appropriated. Indian groups also sought greater influence in the administration of Indian affairs and in the development of natural resources on Indian lands, and organized to preserve Indian culture.

The Progressive Conservative party won the 1979 elections, and its leader, Joe Clark, became prime minister. The Liberals, however, were returned to power in 1980. The National Energy Program, designed to decrease foreign ownership of Canada's oil industry and promote energy self-sufficiency, was introduced that year. Also in 1980, Quebec voters in a referendum rejected the idea of separation from Canada.

The Constitution Act, 1982, passed by the Canadian parliament and approved by the British parliament, gave Canada full sovereignty, removing the last vestige of British control. Quebec's provincial government, however, objected to the Constitution Act because it did not recognize Quebec as a “distinct society,” and did not sign it.

In June, 1984, Trudeau retired. The Liberal party, under his successor, John Turner, was defeated in parliamentary elections in September by the Progressive Conservatives, led by Brian Mulroney. Mulroney promised a new direction for Canada, stressing economic development and cooperation with the United States.

Although Mulroney desired cooperation, several issues strained Canadian-American relations. Canadians felt that the environment had been damaged by industrial pollution from the United States, especially acid rain. Canada protested the passage of United States naval vessels through what Canada claimed as its territorial waters in the Arctic. There also were disputes over fishing rights in Atlantic and Pacific waters.

Despite these problems, there was cooperation in many areas. In 1985 Canada and the United States signed an agreement to study the causes of acid rain, and in 1986 the United States agreed to begin reducing industrial emissions. In 1987 an agreement was signed to eliminate tariffs between the two countries, and Canada agreed to reduce restrictions on foreign investment.

Also in 1987, in an attempt to resolve the continuing dispute over the relationship between Quebec and the federal government, Quebec's government agreed, in what was called the Meech Lake Accord, to sign the Constitution Act, 1982, if a consensus could be reached acknowledging Quebec as a “distinct society” within Canada. There was opposition in some provinces, and the accord failed to be ratified by the deadline of June 23, 1990.

Meanwhile, the Progressive Conservatives won the general elections held in 1988, and Mulroney remained prime minister.

In 1992, after more than a year of negotiations, Canada signed the North American Free Trade Agreement with Mexico and the United States. It was intended to eliminate tariffs and trade and investment restrictions between the nations. Also that year, Mulroney and the 10 provincial premiers negotiated a new constitutional reform agreement, the so-called Charlottetown Accord, to clarify Quebec's role within the confederation. When placed before the voters in a nonbinding referendum in October, 1992, however, it was defeated. Quebec's status remained unsettled as the nation prepared for the parliamentary elections of 1993.

Meanwhile, the economy had entered a deep recession in the early 1990's, and Mulroney and his party had become extremely unpopular. Hoping to improve his party's chances in elections scheduled for late 1993, Mulroney resigned in June, allowing his party to choose a new leader. Defense minister Kim Campbell was selected, and became the first woman prime minister.

The change in leadership failed to prevent the overwhelming defeat of the Progressive Conservatives in the elections of October, 1993. The Liberal party, headed by Jean Chrétien, gained a parliamentary majority and formed a new government. The Reform party, a right-of-center party, and the Bloc Québécois, a separatist party, also gained a significant number of parliamentary seats.

In 1995, Quebec voters narrowly rejected an independence referendum. The ruling Liberal Party won the general elections held in 1997. In 1999, Nunavut—a territory comprised of lands formerly part of the Northwest Territories—came into being. Jean Chrétien withdrew from office in late 2003 and Paul Martin succeeded him. In general elections held in 2004 the Liberal party remained in government but lost its parliamentary majority. In November, 2005, a commission of inquiry confirmed that the Liberals had misused public funds for their own benefit. Later that month, the opposition parties in the House passed a vote of no confidence in the government. The prime minister was forced to dissolve Parliament and to call for a new election which was held in January, 2006. The Conservatives won the most seats in Parliament but did not win a majority. Stephen Harper was sworn in as prime minister of a minority government in February.