The 1988 Canadian federal election was held on November 21, 1988, to elect members to the House of Commons of Canada of the 34th Parliament of Canada. It was an election largely fought on a single issue: the Canada–United States Free Trade Agreement (CUSFTA); the Progressive Conservative Party campaigned in favour of it, whereas the Liberal Party and the New Democratic Party (NDP) campaigned against it. Mulroney won a governing majority and the agreement was passed into law, even though a majority of the voters had voted for parties opposing free trade. The Mulroney government instituted the Goods and Services Tax during this term as well.

The Liberal Party of Canada is a federal political party in Canada. The party espouses the principles of liberalism, and generally sits at the centre to centre-left of the Canadian political spectrum, with their main rival, the Conservative Party, positioned to their right and the New Democratic Party positioned to their left. The party is described as "big tent", practising "brokerage politics", attracting support from a broad spectrum of voters. The Liberal Party is the longest-serving and oldest active federal political party in the country, and has dominated federal politics of Canada for much of its history, holding power for almost 70 years of the 20th century. As a result, it has sometimes been referred to as Canada's "natural governing party".