ECON 2P19 Lecture Notes - New Economics Foundation, Lower Canada, Political Union

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Chapter 10 confederation and the british north america act. Economic integration before 1867: the constitutional act of 1791 divided quebec into two colonies: upper and lower. Canada: this arrangement led to considerable dispute between the two colonies, the first problem concerned the division of tariff and excise revenue, all imports from overseas landed first in lower canada, where they were taxed. If the products were intended for consumption in lower canada, then there was no problem. It was imperative that the rules of the new economy be established quickly and in such a way as to facilitate trade. The infrastructure of government: the development of a dominion civil service proved relatively straightforward, the new capital of canada was to be ottawa. Geography: the first territorial expansion was also the greatest. In 1869, an agreement reached between britain, canada, and the hudson"s bay. In 1871, the deal was completed and canada acquired its pacific province.

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