Ghiz supported the Meech Lake Accord and opposed the Canada–United States Free Trade Agreement. His participation in both debates made him a national figure. His government was re-elected in 1989 winning 30 out of 32 seats; it is speculated that this was in reaction to the federal PC government of Brian Mulroney's decision to close CFB Summerside. Ghiz's government subsequently accepted a $200 million funding agreement for highway construction in exchange for the provincial government allowing the federal Crown corporation CN Rail to abandon railway service in the province.