Canadian–American Reciprocity Treaty

The Canadian–American Reciprocity Treaty of 1854, also known as the Elgin–Marcy Treaty, was a treaty between the United Kingdom and the United States that applied to British North America, including the Province of Canada, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland Colony. The treaty covered raw materials; in effect from 1854 to 1866, it represented a move toward free trade and was opposed by protectionist elements in the United States.

After the American Civil War ended in 1865, US protectionist elements were joined by Americans angry at tacit support by Britain for the Confederate States during the war, and that alliance was successful in terminating the treaty in 1866. The response in much of British North America was to unite some of its colonies in 1867 into the new country of Canada. The new country expected to allow many new economic opportunities in Canada and to unify the colonies against the growing American expansionist sentiments, especially after the Alaska Purchase.

Attempts by the Liberal Party of Canada to revive free trade with an identically named treaty in 1911 led to a political victory for the protectionist Conservative Party, which warned that Canada would be annexed by the Americans. Talk of reciprocity ended for decades, and free trade did not return until the 1988 Canada–United States Free Trade Agreement.