Loewen was a vocal opponent of Canada's proposed
free trade deal with the United States in 1988. He formed the Business Council for Fair Trade, and argued that the deal would undermine Canada's sovereignty. Testifying before a parliamentary committee, he said the Canadian government is "proposing a deal under which I, as a businessman, can prosper - but I must become an American to do so." Loewen supported the
Liberal Party of Canada in the
1988 federal election, and appeared at a Winnipeg campaign rally with party leader
John Turner. He later supported
Lloyd Axworthy's aborted bid to lead the Liberal Party in 1990, and opposed plans for a
North American Free Trade Agreement (NAFTA) the following year. The Liberal Party announced its support for NAFTA in 1991. Loewen subsequently left the party, and become president of the newly formed
National Party of Canada in 1992. This centre-left party supported
economic nationalism, and was led by
Mel Hurtig. Loewen donated $4 million for the party to run candidates in the
1993 federal election, and was himself a candidate in the riding of
Winnipeg South Centre. He finished fifth against Axworthy, the Liberal candidate. The National Party did not win any seats. The National Party suffered an internal split in 1994, with Hurtig and Loewen leading rival factions. Hurtig resigned as party leader at an acrimonious executive meeting in February 1994, but later retracted his resignation. Loewen's faction refused to recognize the retraction, and held that
Kurt Loeb was the party's duly recognized interim leader. Hurtig and Loewen accused one another of undermining the party, and traded insults in the press. The two factions went to Ontario court in March 1994, to determine which side would have access to the party's $480,000 election rebate provided by the federal government. The presiding judge determined in favour of Hurtig's faction. Loewen subsequently issued a short book entitled
National Party of Canada, The First 14 Months, in which he criticized Hurtig as an autocratic leader. Hurtig subsequently defeated Loeb in an official leadership convention, at which time Loewen called for the vote to be made unanimous to demonstrate party unity. The divisions continued, however, and Hurtig resigned the leadership permanently in August 1994. The party fell apart a few weeks later. Party members subsequently launched several legal challenges to keep the National Party, and attempted to recover $610,000 in unaccounted funds. Neither attempt appears to have been successful. He remained an opponent of the Canada-U.S. Free Trade Deal throughout the 1990s. In 1999, he appeared at a panel discussion led by
Paul Hellyer of the newly formed
Canadian Action Party. ==Philanthropist==