Jean Chretien of the Liberal Party Comes to Power
The economy continued to be mired in a long recession that many blamed on the free-trade agreement. Brian Mulroney's popularity continued to decline, causing him to resign before the next election. In June 1993 the governing Progressive Conservative Party chose Defense Minister Kim Campbell as its leader, making her the first female prime minister in Canadian history. The national election in Oct. 1993 resulted in the reemergence of the Liberal Party and the installation of Jean Chrétien as prime minister.
The Quebec referendum on secession in Oct. 1995 yielded a narrow rejection of the proposal, and separatists vowed to try again. Since then, however, the Quebec Liberal Party has replaced the Bloc Québecois as the ruling party.
On April 1, 1999, the Northwest Territories were officially divided to create a new territory in the east that would be governed by Canada's Inuits, who make up 85% of the area's population.
In July 2000, Stockwell Day of the new right-wing Canadian Alliance Party unexpectedly emerged as the leader of Canada's opposition. In Nov. 2000 elections, however, Prime Minister Jean Chrétien of the Liberal Party won a landslide victory for a third five-year term. After the election, the conservatives rapidly lost steam.