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Reciprocity Agreement Of 1854

Faced with the end of the British imperial preference, when British laws on maize, tariffs on food products imported into Britain, were repealed in 1846, the Canadian business community, based in Montreal, turned its gaze to the south. Traders threatened to push for the annexation of the United States if London did not negotiate a free trade agreement. In 1854 they arrived with the Elgin-Marcy Treaty, which listed most Canadian raw materials and agricultural products, particularly wood and wheat, as goods to be admitted duty-free into the U.S. market. The contract ended U.S. tariffs of 21% on natural resource imports. 3 Robinson, Chalfant, Two Reciprocity Treaties (New Haven, 1903) Google Scholar; Haynes, Frederick E., The Reciprocity Treaty with Canada of 1854 (Publications of the American Economic Association, VII, No. 6, 1892)Google Scholar; U.S. Commission of Administration, Reciprocity and Commercial Treaty (Washington, 1919) Google Scholar; C. K. Ganong: “The Canadian Reaction to the American Tariff Policy” (Unpublished thesis, University of Wisconsin, 1931). Google Scholar No further negotiations on reciprocity between the two countries for more than twenty years. Following the passage of the Reciprocal Trade Agreements Act in the United States, negotiations began in late 1934 between the Canadian and U.S.

governments. The Liberals` entry into power in Canada in the fall of 1935 was followed on November 15, 1935, by the King-Hull Agreement in Washington. The treaty was due to enter into force on 31 December 1938. In accordance with its provisions, the United States has reduced tariffs on some 60 products imported from Canada, including cattle, horses, whiskey, sawn boards, boards, stores and sawers, cheddar cheeses, maple sugar and potato plants. Free entry into the U.S. market has been guaranteed for a number of products, including newsprint, wood coil, pulp lentils and wooden shingles. Canada has extended the utility of the intermediate tariff as a whole to the United States. Eighty-eight tariff positions, including products from the agriculture, textile, iron and steel groups, machinery, agriculture, industry and household appliances and electrical equipment, were subject to specific reductions among the nation`s most favoured existing rates.

Each country has expressed its readiness to accept the other unconditional treatment of the most favoured nation with respect to tariffs and related issues. Concessions granted by Canada to other parts of the British Empire and by the United States to Cuba, the Philippines, the Virgin Islands, American Samoa, etc., were not included in the scope of the treaty. Historians agree that the impact has been small for the United States, but they have debated its impact on Canada. After the treaty came into force, Canadian exports to the United States and the Canadian economy grew rapidly, especially in southern Ontario and Nova Scotia. Canadian exports to the United States increased by 33% under the treaty, while U.S. exports increased by only 7%. In ten years, trade between the two countries had doubled.

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