Reciprocal Trade Agreement Canada 1935

U.S. exports to Canada increased by 19.8 per cent in 1936 over the previous year, while our total exports to all other countries increased by only 5.8 per cent. Similarly, in 1936, exports to Canada were 15.3 per cent of our total export trade, compared to only 13.7 per cent in 1934 and 1935. In addition, these U.S. exports accounted for 58.3% of Canada`s total imports. This is the highest proportion they have had (in the Canadian total) since 1931, although it is still well below the pre-depression level. After excluding specific trade movements from the calculation, we see a $94 million increase in our total consumer imports from Canada in 1936. The impact of the agreement on trade stimulus is that U.S. imports increased by only 36%, while imports under the reduced rate increased by 80%. This amount consists of an increase in the import of many different products. It is also clear that whiskey (age of no less than four years) was the largest: its import from Canada increased from $14 million to $28.3 million, the result of special and probably temporary circumstances. The treaty gave U.S. fishermen access to the N.B.A.`s Atlantic inshore fishery.

It also allowed BNA fishermen to fish U.S. coastal waters north of 36 degrees N latitude. The treaty introduced free trade with a considerable number of natural resources. Trade between the United States and the colonies increased sharply after 1854. However, factors other than the reciprocity agreement, such as the Canadian railway boom and the effects of the American Civil War (1861-1865), were largely responsible. During the negotiations, Canada retained the right to protect its cultural industries and sectors such as education and health. Some resources, such as water, should also be removed from the agreement. Canadians have failed to win free competition for U.S. government procurement.

Canadian negotiators also emphasized the inclusion of a dispute resolution mechanism. [14] The importance of tariff reductions may be somewhat reduced if imports of compulsory goods, for which rates have remained unchanged, have also increased by 50%. This is largely due to increased imports of Canadian wheat, barley and rye. Trade in these three commodities, for which full and unchanged rates are paid, has been stimulated by drought. U.S. imports of the three raw materials increased from $15.9 million to $40.3 million during the year. In addition, the Canadian government has agreed to change its use of arbitrary assessments in the application of tariffs on U.S. products.

This practice had weighed heavily on U.S. exports due to the resulting high rates and uncertainty about the amount of these rates.