D

The Conservative Party won election in 1984 and began to change the policies that had been practiced by the Liberal Government for more than 20 years.It reduced government intervention in the economy and adopted a policy of free enterprise and trade.It privatized state⁃owned industries and reduced government spending on social and cultural programs.Internationally，it encouraged foreign investment and sought to improve relations with the United States，Canada’s largest trade partner.In 1987，the government signed the Canadian⁃American Free Trade Agreement which took effect in 1989.

However，the treaty did not bring apparent benefits to Canada.In the early 1990s，the economy entered another serious recession with an unemployment rate of 11％ to 12％.In addition，the government faced an annual budget deficit of＄40 billion and a national debt of＄500 billion;about 30％ of government revenue at the time was used just to pay interest on the debt.People blamed free trade policies for the economic problems，and the Conservative Party suffered a crushing defeat in the 1993 national election;it won only two seats in the House of Representatives and never recovered.

The Liberal Party won the election，but did not make extensive changes to the previous government’s economic policies.In an effort to balance the budget，it cut government spending while maintaining the same tax rate.It also supported free trade and signed the North American Free Trade Agreement in 1994，which included Mexico in the continental free trade zone.Today，the United States is still Canada’s largest trade partner of Canada.The Liberals won the election again in 1997 and in 2000 because the opposition was divided.However，the Canadian Alliance and the Progressive Conservative Party merged in 2003 to form a new Conservative Party of Canada.The party won federal elections 2006 and has been in power since.

In international relations，the government continued to make its close relationship with the United States a fundamental priority of its foreign policy due to geographical closeness，cultural ties，and the importance of bilateral trade.Canada joined the U.S.led coalition forces fighting against Iraq in 1991，supported American and British enforcement of a no⁃fly zone in Iraq in 1998，and participated in UN sanctions against Iraq.After the terrorist attacks on the United States on September 11，2001，Canada sent troops to join international forces against the Al Qaeda terrorist organization in Afghanistan.However，the government did not follow the United States unconditionally.It refused to support the U.S.war against Iraq in 2003 because it was not approved by the UN Security Council.In 2011，Canadian forces participated in the NATO⁃led intervention into the Libyan civil war，and in 2014，Canada participated in military operations against the Islamic State terrorist group.