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RSS FeedsFrom Corn Laws to Trump tirades: A brief history of Canada-U.S. trade wars
(The Star Business)

 
 

23 july 2018 01:32:59

 
From Corn Laws to Trump tirades: A brief history of Canada-U.S. trade wars
(The Star Business)
 


OTTAWA—The recent round of tit-for-tat tariffs between the Trump administration and the Trudeau government is just the latest volley in the long, rich history of tariff wars between Canada and its most important trading partner. This current spat is far from the first time tariffs have dominated our politics. In fact, trade and tariffs have shaped our economy, turned elections and played a crucial role in our perennial efforts to find the right balance between independence and integration. They have been at the very centre of the evolution of Canada and its complex relationship with the United States.Here’s a look at some of the major turning points in the trade relationship between the two countries and how tariffs have shaped our nation:The kernel of our independenceLike any good political story, this one begins with the 1794 Corn Laws.Canada’s first run-in with tariffs turned out to be an important milestone on the way to independence.In 1794, Britain introduced steep tariffs on “corn,” meaning cereal crops. The move was meant to protect Britain’s domestic agriculture industry — one of the primary functions of tariffs — along with raising revenue for the British government. But Britain’s demand for cereal crops quickly outstripped what the country could produce domestically, and the colonies were called upon to focus on producing and exporting grain.In 1846, wanting to embrace freer trade, Britain ditched the Corn Laws, striking a blow to the Canadian grain trade but creating an opportunity for economic self-determination. The move had another unintended consequence — by loosening imperial control on the pre-Canadian colonies’ economies, Britain planted the seed of political autonomy.Pre-Canadian reformers like Robert Baldwin pushed for what they called “Responsible Government,” a measure of independence from their British overlords. And they won. Britain, for instance, allowed the ...


 
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