Canadian House OKs U.S. Trade Pact; Final Vote Due This Week

The House of Commons gave its approval to the controversial Canada-U.S. free-trade agreement early Saturday by a vote of 141 to 111.

Opposition lawmakers protested that the action was a sellout of Canada’s sovereignty.

The accord, which strikes down trade barriers between the world’s two largest trading nations, now goes to the Senate for final approval.

The appointive upper chamber of Parliament is expected to complete final passage by Friday, in time to put the deal into effect as scheduled on New Year’s Day.

The Progressive Conservative government of Prime Minister Brian Mulroney forged the free trade deal with Washington last January, but the Liberals blocked approval of the legislation to force an election.

Mulroney’s government won a strong majority in the Nov. 21 election fought almost exclusively on the issue of free trade.

The accord bill amends 27 Canadian laws to liberalize commerce in several key sectors, including energy, services and investment. Tariffs will also be eliminated over 10 years.

“It was a tough road; this is a rough business,” Mulroney told reporters outside the Commons after the vote.

The Liberals contended that Canada would be overwhelmed by its much larger southern neighbor and that the country’s extensive social welfare system could be dismantled to ensure that Canadian industry remains competitive.

The U.S. Senate ratified the free trade pact earlier this year.