Remember – you had the article on
Aboriginal & European economic exchanges and asked questions…

They all helped shape the Canadian economy.

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Outcome: analyse the role played by the Staple Trade in the development of (Colonial) Canada.
Indicators of Mastery: evaluate and compare the role played by the cod and fur trades in the development of Canada analyse the effect of the timber and wheat trades in the economic expansion of early 19th century British
North America compare the role of staple trade (primary industries) in today’s economy to that of the colonial era analyse the effects of Britain’s adoption of free trade in the 1840s on BNA (e.g., Reciprocity, Treaty of
1854).

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One of the key reasons explorers came to the shores of Northern North
America was fishing
The drying of fish was essential because it took so long to make the journey back to Europe
Fish were plentiful in the
North American waters – especially the cod fish
Cod was a staple food for the Europeans – especially the western Europeans
Establishing Context
Image curtsey of http://commons.wikimedia.org/wik i/File:Atlantic_cod.jpg

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Fishermen from Europe would often stay in fishing encampments for entire seasons to leave before the cold weather as early as the 1300’s
The cod fishery was deemed so important that it had to be protected from fisheries of competing nations – a long term or permanent settlement was therefore required
Reason for Encampment
Image courtesy of http://commons.wikimedia.org/wiki/Fil e:Bidarka_kayak_and_salmon.jpg

Image courtesy of http://commons.wikimedia.org/wiki/Fil e:Tricorne_hat_beaver_fur_c._1780.png
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The trading in fur began almost by accident
Fur became “en vogue” in western Europe
Powerful and rich people wanted to wear fur, particularly beaver fur as it was seen as exotic and luxurious
The desire for fur...

Image courtesy of http://commons.wikimedia.org/wiki/Fil e:Fur_traders_in_canada_1777.jpg
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Fishermen at their seasonal encampments traded with the local native populations for furs on their backs
The furs were made soft from continual use
The fishermen traded old knives, pots, and cloth for the furs that would make them rich in Europe
Soon the wealth from furs would surpass income from fish
Furs or fish...

Image courtesy of http://commons.wikimedia.org/wik i/File:Trade_with_indians_1820.jpg
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As fur becomes the most important commodity
Europeans begin to form companies with exclusive rights to trade with various native groups
Fur company employees spread throughout the frontier to trap and trade
As the value and importance of the fur trade increase the volume of the trade increases
Supply and demand...

Image courtesy of http://timelines.tv/smPox/more/sp read2.html
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Growth of fur trade demanded increasing trade with native populations
Traded goods included more than old tools – now included guns, ammunition, alcohol, manufactured goods such as hammers and axes, and clothing
Common illnesses carried by
European traders and explorers such as the flu, colds tuberculosis, and diarrhoea killed native people in the thousands
It is estimated by some sources that up to 60% of native peoples died due to European disease
Native populations became dependent on European trade

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Staple: Any commodity routinely used that if missing would severely impact the ability of a group of people to function. Examples of staples can include wood and certain foods such as rice or wheat.
Staple Economy: An economic theory that an economy can be formed and built on the trade of natural resources required by other nations or economies as staples such as fish, wood, or wheat. (Sound familiar?)

Impact of Staple Trade in
Contemporary Canada

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Canada is big – the expanse of the nation required creative methods of transport before a national railway and road system
The Canadian west provided for particular challenges due to the geography and terrain
The requirement to move goods such as wheat and timber required the creation of waterways and trails
Transportation was the main issue in pre-confederation Canada
Image courtesy of http://commons.wikimedia.org/wiki/Fil e:Timber_on_the_Ottawa_River.jpg

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Harvesting of timber and farming of wheat required people
The people had to live and work in settlements
As more people were required and more immigrated to Canada the west began to open in earnest – people began to move west and settle beyond Ontario into
Manitoba, Alberta and
British Columbia
Requirement of living and working people...
Image courtesy of http://commons.wikimedia.org/wiki/File:Insp ecting_the_work_of_the_Canadian_Forestry_De tachment.jpg

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Free trade is the concept that nations will not charge tariffs or taxes on imported goods from a specific other nation.
Why could this be a problem? What could be arguments for and against this concept?

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For
Don’t get ripped off – better deals
Develop a strong trading relationship with the specific nation
We could sell more goods in that nation
If we don’t charge tariffs to another nation they may not charge us
Develop stronger diplomatic relationships
Free trade creates jobs through increased demand therefore there is increased production and shipping
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Against
Not fair to some other nations
Bad Deal – one nation may sell their goods too cheaply to the trading nation and loose out
Kill Jobs – If trading nations set up their production in a different economy they can trade back and forth
The demands of one nation can skew the economy of another.

Modern free trade?

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Britain ended protective tariffs in 1846 – This made Canadian goods too expensive in
European markets
Economic depression made Canada look for closer markets for their goods – a market that was desperately needed
Image courtesy http://commons.wikimedia.org/wiki/File:Edward_Walsh_-
_Queenstown,_Upper_Canada_on_the_Niagara_(a.k.a._Queen
ston,_Ontario).jpg

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Lord Elign and W. Marcy signed a treat in June of
1854 between the United
States and Canada (British
North America)
The United States would have access territorial waters of
“Canada” for fishing and business
Duties and tariffs were removed on both sides on goods such as grain, flour and breadstuffs, animals, meats, fruit, fish, poultry, tallow, coal, timber, and lumber
How the treaty worked Image courtesy http://commons.wikimedia.org/wiki/File:Gran ville_Street_at_Duke_Street,_Halifax,_1854.jpg

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There was a period of economic prosperity directly after the treaty for about 10 years
It could be argued that the prosperity was due to internal public works such as the development of the
Great Lakes
Many Canadians were against the treaty claiming that the Americans got more from the treaty than the Canadians
It sort of worked...
Image courtesy http://youngatvanier.blogspot.com
/2009_03_22_archive.html

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Group 1: (Fishery)
CBC Digital Archives - Fished Out: The Rise and Fall of the
Cod Fishery - 1992: Newfoundlanders protest cod
Group 2: (Fur Trade) http://www.thecanadianencyclopedia.com/articles/fur-trade
Group 3: (Staple Thesis and colonial economy) http://en.wikipedia.org/wiki/Staples_thesis http://faculty.marianopolis.edu/c.belanger/quebechistory/en cyclopedia/econhistcan.htm
Group 4:
(Staple Thesis and contemporary Canadian Economy) http://en.wikipedia.org/wiki/Staples_thesis http://www.nrcan.gc.ca/statistics-facts/home/887
Group 5: (Reciprocity Treaty) http://www.histori.ca/peace/page.do?pageID=345#top

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Re-organize into new sharing groups to complete the organizer “Discussion Tracker”.

Do you think this could ever change?