Following the signing of the auto pact, the Canadian government considered proposing free trade agreements in other sectors of the economy. However, the U.S. government was less sensitive to this idea and wanted to remove some of the guarantees from the pact. Canada`s attention has focused on the issue of a broader free trade agreement between the two countries.  amends the Customs Act of 1930 to empower the Minister of Agriculture to: allow the importation of animals of the bovine species, sheep or other ruminants, pigs (including embryos) or fresh, chilled or frozen meats of these animals from a Canadian region where bovine plague or foot-and-mouth disease is present, if: 1) the United States and Canada have reached an agreement that , according to the criteria, supports the recognition of a geographical region of one of the two countries in the region of bovine plague or foot-and-mouth disease; and (2) the official in charge of the Canadian government certifies that the Canadian region from which the animal or meat originates is free of these diseases. (c) substantial liberalisation of investment conditions within this free trade area; It was also the first Canadian election to use a lot of negative publicity; Anti-free trade advertising showed that negotiators were “moving away” from the free trade agreement, which turned out to be the Canada-U.S. border at the end of advertising. Although some opinion polls showed that there were slightly more Canadians against the deal than for him, the Mulroney Progressive Conservatives took advantage of being the only party in favour of the deal, while the Liberals and the NDP divided the vote on free trade. In addition, future Quebec premiers Jacques Parizeau and Bernard Landry supported the agreement, which was seen as a factor in supporting the PC party in Quebec.
 Mulroney won a government majority and the agreement was introduced into law, even though a majority of voters had voted for parties opposed to free trade.   The free trade agreement has met with much less opposition in the United States. Polls showed that up to 40% of Americans did not know that the agreement had been signed. The agreement law was submitted to Congress for “rapid” adoption by President Reagan on July 26, 1988, meaning that it could be accepted or rejected, but could not be amended. The United States-Canada Free-Trade Agreement Act of 1988 passed the House of Representatives by yes Nay: 366-40, passed in the House of Representatives on August 9, 1988, and voted in the Senate by yes Nay. 83-9, September 19, 1988.  The law was signed by the President on September 28, 1988 and became Public Law No. 100-449.  The implementation legislation was deferred to the Senate, which had a majority of the Liberal Party. In part in response to these delays, Mulroney declared an election in 1988.
The trade agreement was by far the most important theme of the campaign, leading some to call it “free trade”. It was the first Canadian election to make major third-party election advertisements, where supporters and opponents used lobbyists to buy television advertising.