key term - Intercolonial trade

Definition

Intercolonial trade refers to the exchange of goods and services between different colonies within a larger political entity, such as British North America prior to Confederation in 1867. This trade was vital for economic growth, allowing colonies to become more self-sufficient while fostering relationships among them. It was also a key factor influencing the Fathers of Confederation as they envisioned a more unified and economically integrated Canada.

5 Must Know Facts For Your Next Test

1. Intercolonial trade was primarily conducted among the British North American colonies, including Nova Scotia, New Brunswick, Quebec, and Ontario.
2. The transportation of goods between colonies relied heavily on maritime routes, making shipbuilding and navigation important industries.
3. Challenges like tariffs between provinces and lack of infrastructure hindered efficient trade before Confederation.
4. The idea of creating a railway network was partly motivated by the need to facilitate intercolonial trade and improve economic ties among the provinces.
5. The vision for a united Canada included removing barriers to intercolonial trade, which was seen as essential for economic prosperity and stability.

Review Questions

• How did intercolonial trade influence the economic relationships between the British North American colonies?
  • Intercolonial trade fostered economic relationships by allowing colonies to exchange goods that they produced based on their unique resources. For instance, agricultural products from the interior could be traded for fish and timber from coastal areas. This exchange created interdependencies that highlighted the benefits of cooperation, ultimately leading to discussions about a more unified approach to trade and governance as seen in the Confederation debates.
• Analyze how the challenges faced in intercolonial trade contributed to the push for Canadian Confederation.
  • The challenges in intercolonial trade, such as varying tariffs and insufficient transportation infrastructure, made it clear that a more coordinated approach was necessary. Colonies experienced frustrations with barriers that limited trade efficiency and economic growth. The Fathers of Confederation recognized that creating a central government would streamline these processes and foster better trade relationships among provinces, which was a significant incentive for unification.
• Evaluate the long-term impacts of intercolonial trade on Canada's development post-Confederation.
  • Post-Confederation, intercolonial trade laid the foundation for a national economy that allowed Canada to grow into a significant global player. The establishment of railroads facilitated not only domestic trade but also connections with international markets. The push towards free trade agreements and reduced tariffs can be traced back to early intercolonial trading practices, illustrating how these initial economic ties shaped modern Canadian economic policies and regional cooperation.

Related terms

Mercantilism: An economic theory that emphasizes the importance of accumulating wealth through trade, where colonies were expected to provide raw materials to the mother country while importing finished goods.

Tariffs: Taxes imposed on imported goods, often used by governments to protect domestic industries by making foreign products more expensive.

Dominion: A semi-autonomous polity within the British Empire, reflecting a level of self-governance and legislative independence, significant for the colonies that formed Canada.