Reciprocal Trade Agreement Canada 1935: A Look Back
The Reciprocal Trade Agreement (RTA) between Canada and the United States in 1935 was a significant milestone in Canadian history. It marked the beginning of a new era in Canadian economic policy, which had historically been protectionist in nature.
The RTA was negotiated by Canadian Prime Minister R.B. Bennett and U.S. President Franklin D. Roosevelt. The agreement aimed to reduce trade barriers between the two countries and promote free trade. As a result, Canada and the United States agreed to reduce tariffs on a range of goods, including agricultural products, fish, lumber, and pulp and paper.
The RTA was a significant departure from Canada`s previous protectionist policies, which had been in place since Confederation in 1867. The policy of protectionism aimed to protect domestic industries from foreign competition by imposing high tariffs on imported goods. This policy had a negative impact on Canadian consumers, who had to pay higher prices for imported goods.
The RTA was an important step towards free trade, which has become a cornerstone of Canadian economic policy. Since the RTA, Canada has signed numerous free trade agreements with countries around the world, including the North American Free Trade Agreement (NAFTA) with the United States and Mexico in 1994.
The RTA had a positive impact on the Canadian economy. It led to increased trade between Canada and the United States, which helped to boost economic growth and create jobs. The agreement also helped to reduce the cost of imported goods for Canadian consumers, which improved their standard of living.
In conclusion, the Reciprocal Trade Agreement Canada 1935 was a significant milestone in Canadian economic history. It marked the transition from a protectionist to a free trade policy, which has become a hallmark of Canadian economic policy. The agreement helped to promote trade between Canada and the United States, which has been beneficial to both countries. The RTA paved the way for numerous free trade agreements that have further expanded Canada`s global trade relationships and opened up new opportunities for economic growth and prosperity.
