Canada’s National Policy: Protection as a Development Strategy

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Canada’s National Policy
Protection as a Development Strategy 4/3/12 9:17 PM
Trade Liberalization in the Nineteenth Century
Liberal ideas spread in the mid- 1800s
Elgin Treaty (1854)
o an agreement between US and Canada to have liberalized
trade- lower tariffs
o volume of trade increases
o doesn’t have much of a long term impact because of the
American Civil War ! 1860
" causes the US to adopt higher tariffs because the
southern states withdrew from the union
" the federal government is prosecuting this war
" income tax
o First “Great Depression” occurs in the 1870s
The Election of 1878
Liberals vs. Tories
Liberals had failed to renew treaty with U.S.
Sir John A. Macdonald
o offers protectionism
o goes to business men to convince them --> big business men
agree with this policy
Selling the National Policy
Three elements to gather broad support
o Protective tariffs
o infrastructure development (the CPR)
o settlement of the western provinces ! wanting more
immigrants
The National Policy in Place
Intended to support economic development, just without relying on
international trade
Legislation Begins in 1879
Tariffs protect industrial goods
Settlement policies are too weak, however
o immigration worked, but many Canadians moved out
CPR constructs transcanada railway in the 1880s
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