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POLI 243 (111)
Mark Brawley (109)

Canada - National Policy and Reciprocity Election

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McGill University
Political Science
POLI 243
Mark Brawley

National Policy Protection as a Development Strategy 25/02/2013 13:38:00 th ← Trade Liberalization in the 19 century • Liberal ideas spread in the mid-1800s • Elgin Treaty (1854) o Canada and the US strip tariffs between themselves – free trade grows • American Civil War o US North introduces tariffs to raise money as a war measure  Once the war is over, the tariffs stay  During reconstruction, Southern states don’t have political representation o North: textile, factories etc in New England that didn’t want to compete with European manufacturers • First “Great Depression” occurs in the 1870s o Many states industrializing at once, introduction to new technology (transportation: steam ships, extending railroads; communication) o Flood of goods on markets, drives the prices down o Put tariffs in place to protect themselves from trade • Canadian overtures rejected by US o Both political parties try to convince US to remove tariffs ← ← The Elections of 1878 • Leader of the Tories – Sir John A MacDonald • Liberals versus Tories no distinct ideological policies in terms of economy, both follow liberalism • Liberals had failed to get treaty with the MacDonald used it against them in the election o Liberals had their chance and failewe should have a protective tariff • Protectionism based on US model o Republicans were able to stay in power in the US due to strong support base, but also protectionism to protect certain interest o Block US/European goods. Put tariffs to guarantee market and profit in face of competition ← ← Selling the National Policy • Protectionism is good for certain sector’s interest • Three elements to gather broad support, complement each other o Protective tariffs – popular in urban areas o Infrastructural development (the CPR) – railroads connecting east, prairies and west coast to sell goods  Subsidized by the government (land, money) o Settlement of the western provinces – regional specialization from within the country ← ← The National Policy in place • Intended to support economic development, just without relying on international trade • Legislations beings in 1879 • Tariffs protect industrial goods right away • Settlements policies are too weak – immigrants are refugees from Europe  unskilled labor, have no money o People leave more than they come in • CPR crosses the continent o Also exercises monopolistic powers ← ← The selection and implementation of the National Policy • System-level: US policies constrained choices • Domestic-level: trade cleavages visible in elections o Manufacturing needs protection • Bureaucratic politics: tariffs as revenue • Individual-level: MacDonald’s personality drives decision • Ideas: Classical Liberalism challenged by crisis of the 1870s The Reciprocity Election of 1911 Laurier’s failure to liberalize trade 25/02/2013 13:38:00  ← - Laurier is PM for 15 yeahe was excellent at compromises/consensus ← - Why was this election about trade with the US, how did he lose to badly? ← ← The Liberals reinterpret the National Policy • Sir Wilfrid Laurier and the Liberals come into power in 1896 • Criticized National Policy in terms of what it delivers • But tariffs unchanged – US unreceptive • Begin to modify the National Policy: Crow’s Nest Pass Agreement o Converse with CPR  Change rate to cross grain from the west  Change fares for settlers bringing household items to the west • Laurier’s governments seeks more immigrants o Clifford Sifton as Minister of the Interior – advertisement campaign to lure European farmers o Bring in people who have experience in farming already Canada becomes major exporter of wheat • Liberals appear to prefer t
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