The Reciprocity Treaty of 1854: A Regional Study

Abstract

While the net effects of the Reciprocity Treaty, 1855-1866, are difficult to estimate, it has been generally held that the Maritime Provinces gained more than did the province of Canada. The rapid development of central Canada and the painful readjustments of the Maritime Provinces since the abrogation of the treaty and the consummation of Confederation may seem to justify this conclusion, but the following analysis of the trade statistics of the period suggests grave doubts as to the validity of this interpretation. It appears that it was the province of Canada that had most to gain from free access to the American market.The simplest and most general test of the efficacy of any trade policy is the measure of increase or decrease in those branches of commerce that it was designed to influence. In order to apply this test, a table has been prepared (table I) showing for the province of Canada and the Maritime Provinces the percentage changes in exports to, and imports from, the United States. In each case the imports and exports for the years 1854 to 1866 are shown as percentages of those for the year 1853. Had 1854 been chosen as the base year a slight advantage would have been gained for the thesis of this paper, but the results would not have been materially different.