Mulroney PC second term — GST, NAFTA, Meech/Charlottetown failure

Doctrine — stated goals and content

Market-liberal consolidation paired with failed mega-constitutional politics. Four doctrinal pillars: (a) Goods and Services Tax — the 7% GST (enacted 1 January 1991) replaced the distortionary 13.5% Manufacturers' Sales Tax; rammed through the Senate by appointing eight additional senators under Section 26 of the Constitution Act; politically radioactive but economically orthodox broad-base consumption tax. (b) Continental integration extended — NAFTA negotiations 1991-92, signed 17 December 1992 (ratified under Chrétien January 1994); Canada joined the Mexico-US track to avoid a hub-and-spoke disadvantage. (c) Constitutional exhaustion — Meech Lake Accord (1987) died 22 June 1990 when Manitoba (Elijah Harper) and Newfoundland declined to ratify; Charlottetown Accord referendum 26 October 1992 rejected 54.3% No / 45.7% Yes with six provinces against. (d) Bank of Canada inflation-targeting — John Crow governorship; 1991 joint inflation-control targets with Finance (2% band) — first numerical inflation target in G7. Stated school: market-liberal economic conservatism + constitutional accommodation. Left-right: centre-right economic, decentralising federalism, failed social-constitutional compromise. Popularity: November 1988 43.0% vote / 169 seats; by early 1993 PC polling 12-15% under recession + GST + Charlottetown; Mulroney resigned February 1993; Kim Campbell (PC leader from June 1993) presided over October 1993 wipe-out — PC 16.0% vote / 2 seats, largest collapse of a governing party in a democracy. Coherence: trade short-run GST unpopularity and constitutional bandwidth for broad-base consumption tax, continental integration, and credible monetary framework — the economic pillars held while the constitutional pillar shattered the coalition.