Cancellation Of The Reciprocity Treaty

In 1854, the United States and Britain agreed to a Reciprocity Treaty that allowed for free trade on products such as timber, grain, coal, livestock, and fish. This meant that the BNA colonies could trade freely with the Americans and profit from their relationship.

In the spring of 1866, the United States cancelled the Reciprocity Treaty with Britain. This meant that the BNA colonies lost their favourable tax rate with America and there was a negative impact on the economy of the colonies. As a result, they were eager to find new markets for their products and resources.

One reason for the cancellation was that some Americans believed that if the United States could cripple the economy of British North America, the British colonies would be forced into a union with the United States.

However, the colonies of British North America thought that by joining together they would increase their prosperity and increase free trade amongst themselves. In a speech given by George Brown, the leader of the Liberal Party in the Province of Canada and founder of the Globe newspaper, he explains how Confederation would offer a solution to BNA's economic troubles.