The Progressive Conservative Party of Canada merged with the Canadian Alliance in early 2004 to create the Conservative Party of Canada. Loewen initially supported the new party, but announced on September 23, 2005 that he would seek the federal Liberal nomination for Charleswood—St. James—Assiniboia in the upcoming federal election. In making the announcement, Loewen said he was uncomfortable with the social conservatism of Conservative leader Stephen Harper, and that he "never believed in the policies of the former Alliance and Reform parties" which he described as "dominatthe [Conservative party". He resigned from the provincial legislature on September 26, 2005, and subsequently beat Gennarino Conte for the Liberal nomination. He lost to Conservative incumbent Steven Fletcher in the 2006 federal election, as the Conservatives gained twenty-five seats to form a minority government. Loewen acknowledged that the national trend worked against his candidacy.