Reasons for tariff policy liberalisation in 19th century? (4)
New ideas (Smith and Ricardo)
Political and power reasons
Moral crusade
Food supply
What were Ricardo’s ideas in 1817?
Published book staying theory of comparative advantage showing it makes sense for countries to trade even if one is better at everything, as long as the other has a lower OC of producing
What were smiths ideas in 1776?
Published findings on absolute advantage showing that practising free trade leads to higher GDP
What were the 2 reasons leading to the repealing of the navigation laws (politics and power)?
Britain strong in shipping tf liberalisation -> increased services exports
Also strongest in financial and commercial sector tf FT made sense
What was the ‘moral crusade’ that helped liberalise policy in the 19th century?
Radical liberals believed mercantilism led to conflict tf this led to freer trade and increased international co-operation
What was the Cobden-Chevalier treaty of 1860 and why was it significant?
Between Britain and France:
Reduced duties on British manufactured goods to below 30%
Reduced duties on French wines
Led to successive inter-European agreements
Why was the worry of food supply a reason for trade liberalisation in the 19th century?
Increasing British urban population, ruling aristocracy afraid Britain wouldn’t be able to feed it tf FT -> increase cheap food imports
What are 4 examples of trade liberalisation in the 1800s?
20s - import duties cut
40s - shift in taxes to income from tariffs
‘46 - corn laws repealed tf wheat enters country for free
50s - navigation laws repealed tf no longer have to carry British trade in British ships
3 branches off ‘post British liberalisation of 19th century’?
1903 political response
Countries that followed suit
Resistance to liberalisation
2 points regarding the 1903 political response to other countries not liberalising?
‘Fair trade’ (retaliation tariffs) of 1880s but very little political support tf flops
Concerns are mainly expressed by media and not MPs
What countries followed suit? Why?
Colonies (India and aus. Etc) had it forced upon them
Informal empire - China, turkey, Argentina had it semi imposed on them
EV regarding informal empire free trade imposition?
Britain tried to steer Argentina towards free trade policy but doesn’t work that well tf by 1914 Britain is losing trade with them to the USA
Explain the main resistance towards free trade and why?
USA and Germany wanted to industrialise but needed to protect their industries to do this
Resistance from USA and Europe (bar France)
In 1914 both USA and Germany overtake Britain, attacking their home market as well as their export market
.
Change in Canadian import manufactured goods market from 1870 to 1900?
From Britain: 57% down to 24%
From USA: 32% up to 60%
Branches off Joseph Chamerlain and Tariff Reform?
Vision for Britain
Geo-Politics
Launch of Campaign
What was JC’s vision for Britain and why?
Customs union in empire (FT within and CET for external trade)
Why?
Believed tariffs would create finance for social improvements (OAPS)
What was the rationale behind JC’s vision? (2) (where he prioritises and other)
Prioritised ‘white’ empire since most potential for RM + food markets + migration
Assumed industry would remain big economic driver tf thought dependence on services was a weakness, by cementing the block he believed this would ensure definite buyers of British manufacturing exports
2 points regarding geo politics and JC’s view?
Believed future belonged to large land masses and populations and resources
Worried that fair trade would fragment empire tf reduce britain’s power
2 points about launch of JC’s TR campaign up to the changes?
JC leads til 1906 when he has a stroke
After this the TR is still prominent in politics til WW1 but it begins to change to gain popularity
3 changes to JC’s TR campaign?
- argues could become bargaining weapon to get other countries to reduce tariffs
- argued could protect domestic agriculture (tf gets farmer votes)
- increased emphasis on tariffs as a source for social reform (OAPS, unemployment benefits etc)
3 overview reasons for pro FT liberals being defeated by conservatives in ‘06 and ‘10 elections?
Contradictions on the campaign
Business view that imports hurt them very little
Consumer view on food
Explain the consumer view on food?
Protectionism would lead to increased food prices tf eventually conservatives dropped talk of ‘food tax’
What 3 areas of the campaign had contradictions?
Food
Revenue
Treaty bargaining
