Economic Globalization

In the 1980s, international trade grew among countries. This phenomenon of economic relationships between countries is called “market globalization”. Foreign investment therefore increased significantly and countries exported more of their products to sell them all around the world. To promote economic growth, Canada and Quebec also participated in this globalization, becoming major players in this new trend.

The expression “Quebec Inc.” represented a collaboration between the Quebec government and Quebec companies. This collaboration had its roots in the Quiet Revolution, during which Quebec attempted to define its identity in relation to Canada and the rest of the world. The goal was for these Francophone companies to be financially strong enough to invest abroad and therefore to represent Quebec on the world stage.

In this way, products from Quebec found a market among a growing number of consumers. This allowed some Quebec-based companies to experience considerable economic growth. Bombardier-Canadair (aeronautics), SNC-Lavalin (engineering) and Provigo-Loblaws (grocery) are all examples of these Quebec-based companies making a name for themselves around the world.​

Free trade is an economic policy in which commercial trade is conducted freely between countries that agree to the terms of an agreement. Private companies can therefore invest and sell their products outside their country without serious constraints from partnering countries.

Canada formed several free trade agreements at the end of the 20^th century. After several years of negotiations, Canadian Prime Minister Brian Mulroney and the United States signed CUSFTA (Canada-United States Free Trade Agreement) in 1989. Three years later, Mexico joined the agreement to create NAFTA (North American Free Trade Agreement) in 1992. This agreement ensured sustained economic collaboration between the three countries, eliminating most tariffs on traded products.

The World Trade Organization (WTO) was founded in 1995 to regulate international trade. At that time, 128 countries were members. With the arrival of the WTO, economic globalization became much more concrete, because now there were clear rules governing international trade.

The various free trade agreements signed by Canada internationally allowed Quebec to export many of its products. Several industries were popular on international markets, with aeronautics at the top of the list.