Article content

The economic benefits of international trade have been understood for about 200 years. But trade itself has been going on throughout history, including here in North America. At numerous sites, such as the junction of the Gatineau and Ottawa rivers near what is now Parliament Hill, evidence of trading stretches back centuries. Goods—and better methods of producing them—spread via trade among First Nations.

When trade barriers are falling, when are people coming to our shores and when investment is rising, Canadians prosper

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Trade made Canada great: Bank of Canada governor Stephen Poloz Back to video

Trade grew even more following the arrival of Europeans. The colonial powers of Britain and France had a strong interest in Canada’s natural resources. Trade in resources like fish, furs and timber, which was established long before Confederation, shaped how Canada would develop.

Tariffs served a dual purpose in the 19th century. Until the First World War, governments relied on tariffs for most of their revenue. But the second purpose of tariffs was the protection of domestic business from foreign competition. Over the years, tension developed between those who sought higher tariffs to provide protection from import competition and those who advocated lower tariffs and open markets. In Canada, this tension has often had a regional component, with consumers outside the protected industries resenting paying higher prices. This tension has ebbed and flowed for the past 200 years.