National Policy

Like siblings, the two countries have often fought as they've traded stuff.

Holman points to the 1870s when Canada's first prime minister, John A. Macdonald, put in place something called the National Policy, which included a protective tariff.

So that manufacturers in Canada would be protected from competition from external producers.

And the United States, of course, followed suit not too long after.

The second proposition was that the true solution of the difficulty lay in the confederation of all the provinces.

The third resolution was that we should attempt to form in such confederation, or in Canada before confederation, a commercial national policy.

The effects of the formation of the British American League were marvelous.

Under its influence, the annexation sentiment disappeared, the feeling of irritation died away, and the principles which were laid down by the British American League in eighteen fifty are the lines on which the Conservative-Liberal party has moved ever since." Unquote.

Canada suffered severely, and so did the ministry.

Business was bad, the revenues fell off, employment became scarce.

It was during this period that the Conservative opposition began the advocacy of what was called the National Policy, a system of modified protection which it was hoped would both stimulate the industries of the country and provide a sufficient revenue.

Protection was no new policy with Sir John Macdonald.