The Reciprocity Treaty
What was the Reciprocity Treaty?
The Reciprocity treaty was an agreement between the United States and Canada to have trades without tariffs(taxes). It was signed on June,5,1854 in Washington.DC. by representatives from the U.S and Canada. They came to this treaty by people's demand both in Canada and the U.S to have freer trades between the two countries. The treaty was for a ten year trial period, after that either side could break the agreement.
New Rules in the Treaty.
- Allow products of farms, mines and sea to cross borders tax free.
- The U.S could fish in the waters off the Atlantic colonies.
- Allowed Canadians to access U.S fisheries north of 36th parallel.
Effects of the Treaty.
- Major items for the U.S for trading were: coal, pork, cotton wool, flour.
- Major items for Canada for trading were: fish, timber, grain, cattle.
- Large increase in Canada's exports to the U.S and rapid growth of Canadian economy.
- Exports to U.S from Canada increased by 33% while the exports to Canada from the U.S only
increased by 7%.
- After 10 years, trade rates had doubled between the two countries.
The End of the Treaty
The U.S decided to end the treaty in 1866 because they thought the Canadians were benefiting more in the treaty then they were. After the treaty had ended, British North America faced economic confusion and the economy went down a bit while for the Americans there was no real impact.
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It reminded me of how we have to pay tax when we buy something at a shop because the Canadians had to do the same if they wanted to trade anything with the Americans before and after the ten year trial period of the treaty.
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It also reminds me of other treaties in the past we have learned about before, like the treaty of Paris that created British North America.
Above is the link to see the Reciprocity Treaty and if you want more information on this topic.