POLI 243 Chapter 12.docx

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Published on 18 Apr 2013
School
McGill University
Department
Political Science
Course
POLI 243
Professor
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Chapter 12: Sir John A. MacDonald and the Introduction of Canada’s National
Policy
Free-er trade spread internationally, many economies adopting liberal trade
policies
Increase in commodities due to transportation advances and increased productive
capacity. Made free trade unpopular.
National Policy:
Protectionism (high tariffs)
Transnational railroad
Increase immigration to the west
System-level:
Economic downturn in 1870s
Everyone else was pursuing protectionism, Canada could remain open or retaliate
No regime existed at the time. Everything was done via bilateral agreements.
Industrial producers in Canada were losing the US market, needed to grow
domestically as a result
Domestic politics
Land was abundant, but capital and labor were not
Landowners (farmers) expected to support free trade, industrial interests wanted
protectionism
CPR took longer and cost more than expected. Farmers and vendors in the west
had no choice but to use it, and it cost them a lot.
o Liberals argued for railway competition
Tories did not support immigrants, people kept moving to the US whenever its
economy was stronger!
Quebec nationalism created issues on trade policy
Bureaucratic politics
Both tories and liberals were interested in having tariffs, but disagreed on size and
shape.
Ad valorum rate: duty paid was a percentage on declared value of imported item
Tories changed it to specific rates so that the dropping prices would not affect the
tariff revenue, or at least set minimum rates
Liberalism
MacDonald engineered the National policy
Liberalism challenged when crash on 1870s leaves policies unsuccessful
Other two dimensions of the national policy kind of flopped. So while
protectionism worked it was kept.
Liberals adopt National Policy
Liberals in power in 1896, do not move to lower tariff
Held back by unchanging US policies
Handled railways differently by encouraging development of competition and
pursued more active and positive policies on immigration and land settlement
Government expenditures on immigration rose, and by proxy immigration also
rose
Immigration policies aimed at attracting farmers

Document Summary

Chapter 12: sir john a. macdonald and the introduction of canada"s national. Free-er trade spread internationally, many economies adopting liberal trade policies. Increase in commodities due to transportation advances and increased productive capacity. Everyone else was pursuing protectionism, canada could remain open or retaliate. Industrial producers in canada were losing the us market, needed to grow domestically as a result. Land was abundant, but capital and labor were not. Landowners (farmers) expected to support free trade, industrial interests wanted protectionism. Cpr took longer and cost more than expected. Farmers and vendors in the west had no choice but to use it, and it cost them a lot: liberals argued for railway competition. Tories did not support immigrants, people kept moving to the us whenever its economy was stronger! Quebec nationalism created issues on trade policy. Both tories and liberals were interested in having tariffs, but disagreed on size and shape.