Iv.—: Canadian Experience.

Canada has given England preferential treatment. What has been the result?

On July 1, 1898, a tariff giving 25 per cent. preference to English goods was issued, and on July 1, 1900, one granting 33 per cent.

These figures show that the influence of preferential tariffs has been rather to increase Canadian exports to England than English exports to Canada; the former having risen 70 per cent, from 1890-1894 to 1898-1902, whereas the latter have only increased 43 per cent. A glorious result, the Protectionist may say, but his enthusiasm becomes wholly unreasonable when we compare Canada’s imports from Great Britain and the United States in million dollars:—

Between 1896 and 1904 for these two countries, Canada’s principal importers have risen 156 per cent. for United States, 84 per cent. United Kingdom.

At the Colonial Conference in 1902 Mr. Chamberlain said, “The results have been a deception.” And they have grown worse. The reasons are clearly given in a Board of Trade Memorandum. The United States enjoy geographical advantages which no preferential tariff can abolish, and in spite of the tariff Canadian policy, remaining Protectionist, taxes manufactures more heavily than raw materials. England sends manufactures to Canada, and the duties on them are still above the average duty on the goods imported from the United States. In 1903 manufactures ready for consumption brought in 24·3 per cent., “luxuries” 53·56 per cent., most of which came from England. In 1903 the average duty on English imports was 17 per cent., while that on American imports was only some 121/2 per cent. The preferential tariff produced the usual recrimination. Canadian manufacturers, pretending to be penalised by English competition, got an Act passed, June 20, 1904, which specified that the minimum tariff on cloth and woollen goods should be at least 30 per cent., and that on ropes at least 20 per cent. In 1904 a special tax on commercial travellers was specially aimed against the English ones. Is all this a preparation for Free Trade within the Empire?