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POLI 243 Lecture 14 Flash Cards
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What was the Elgin Treaty (1854)?
What was the Elgin Treaty (1854)?
- Treaty between the United States and Canada (the British were still involved in negotiating these sorts of things, so it is not a surprise that the treaty stresses free trade, as Britain was pursuing free trade at home)
- Builds off Repeal of the Corn Laws
- Resolved some issues between the two countries
- However, the United States would go down a different path (this was a function of the Civil War)
What is the system-level explanation for Canada's National Policy?
What is the system-level explanation for Canada's National Policy?
System-level: U.S. policies constrained choices
- Canada’s first choice was to have free trade. Canadian government asked the U.S. for free trade and were declined
- Places that typically would have been markets for Canadian agricultural exports were raising tariffs to deal with the flood of commodities in the 1870s that pushed prices down
(this was disastrous for European farmers)
- In this systemic environment, Canada’s National Policy was a rational response.
What is the domestic-level explanation for Canada's National Policy?
What is the domestic-level explanation for Canada's National Policy?
Domestic-level: trade cleavages visible in elections
- Analytical liberal perspective says to look at the distribution of interests within the country. Who wins and loses when there is free trade? Who wins and loses when there is protection?
- Stolper-Samuelson: tells us that cities will be protectionist. They will do well with the tariffs that the National Policy brings in. Stolper-Samuelson misses the broader picture of agriculture, however.
- Most of the seats in parliament were agricultural interests. Clearly not all landowners are supporting free trade, or they wouldn’t have gone along with the Tories (conservatives) for so long.
- Sector-Specific: makes the same prediction about protectionism within cities as Stolper Samuelson, but allows for the dissection of agricultural interests.
- A little bit better than Stolper-Samuelson at capturing what is happening.
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