AbstractThe federal election of 1984 brought to an end 16 years of virtually uninterrupted Liberal government whose foreign policy was characterized by an evident desire to set Canada apart from the United States and give a truly Canadian flavour to the country's diplomacy. The Conservatives have drawn a lesson for themselves from the limited results of such policy and have re-aligned the country more closely with the United States to resolve various issues inherited from the Liberals, free trade being one of them. If free trade were to become a reality, there would be serious implications for the future of Canadian industry, for the social and economic well-being of the population, and, most important of all, for the existence of Canada as a sovereign state.