ECO322H1 Lecture Notes - Lecture 1: Data Reporting
Lecture 1 – ECO322
Reciprocity Treaty:
- First trade agreement between BNA and USA signed in 1855
- Eliminates tariff on natural products and gives both nations’ citizens fishing rights
- Abrogated in 1866 by USA; explanation was that BNA applied manufacturers tariffs in 1857,
but USA did the same in 1862
Proponents:
- Canadian exports shot up 33% in 1855
- Increase in Canadian exports to USA; imports fell
- BNA exports doubled during the treaty
Officer and Smith (Opponents):
- Argue that Reciprocity was not conducive to growth
-“Disaggregative approach”: Breaks the timeline into 3 periods (1855, 1856-1860, 1861-1865)
and breaks up trade data into reciprocity and non-reciprocity items
- 1st: Jumped due to data reporting (did they accurately report trades); railway construction
peaked in 1855; peak of expansion in 1855
- 2nd: manufacturing grew by more than natural products
- 3rd: Civil war in the USA
Did it help growth?
- Probably not, all it did was save producers on some transport costs (ON to NY and NY to QC)
- Canals cost big money though, so effect is negligible
Infant Industries:
- Cheese as an example; delayed development of industry because of focus on exporting natural
products instead of value added goods (export milk instead of make milk into cheese)
- Cheese factories went from 12 to over 300 from 1865 to 1870
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
First trade agreement between bna and usa signed in 1855. Eliminates tariff on natural products and gives both nations" citizens fishing rights. Abrogated in 1866 by usa; explanation was that bna applied manufacturers tariffs in 1857, but usa did the same in 1862. Canadian exports shot up 33% in 1855. Increase in canadian exports to usa; imports fell. Argue that reciprocity was not conducive to growth. Disaggregative approach : breaks the timeline into 3 periods (1855, 1856-1860, 1861-1865) and breaks up trade data into reciprocity and non-reciprocity items. 1st: jumped due to data reporting (did they accurately report trades); railway construction peaked in 1855; peak of expansion in 1855. 2nd: manufacturing grew by more than natural products. Probably not, all it did was save producers on some transport costs (on to ny and ny to qc) Canals cost big money though, so effect is negligible.
