The Elgin-Marcy Treaty established reciprocal free trade in raw materials between the US and British North America from 1854 to 1866, shaping Canada's Confederation.
Key Facts
- Also known as
- Elgin-Marcy Treaty
- Treaty in force
- 1854 to 1866
- Key negotiators
- James Bruce, 8th Earl of Elgin; William L. Marcy
- Territories covered
- Province of Canada, New Brunswick, Nova Scotia, PEI, Newfoundland
- Terminated
- 1866, amid post-Civil War US protectionist and anti-British sentiment
- Free trade revival
- Canada–US Free Trade Agreement, 1988
By the Numbers
Location
Cause → Event → Consequence
Expanding trade between the United States and British North America, combined with British moves away from protectionism, created pressure for a reciprocal trade arrangement covering raw materials. Both governments sought economic benefits from reduced tariffs across the border.
The Elgin-Marcy Treaty of 1854, negotiated by James Bruce, 8th Earl of Elgin, and US Secretary of State William L. Marcy, established reciprocal free trade in raw materials between the United States and British North American colonies, remaining in effect for twelve years.
US protectionists, inflamed by British tacit support for the Confederacy during the Civil War, terminated the treaty in 1866. This spurred several British North American colonies to unite in Confederation in 1867, forming Canada, partly to strengthen their economic and political position against American expansionism.
Political Outcome
Reciprocal free trade in raw materials established 1854–1866; terminated by US in 1866; contributed to Canadian Confederation in 1867
British North American colonies traded under protectionist tariff regimes with limited US access
Reciprocal free trade in raw materials between the US and British North American colonies; abrogation accelerated colonial confederation