Ottawa Agreements

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Ottawa Agreements (10 July–20 Aug. 1932) A series of trade agreements between Britain and its Dominions, extended to its Crown Colonies in the following year. The British abandonment of the principle of free trade at the height of the Great Depression in 1931 paved the way for the establishment of a system of Imperial Preference, a concept originally championed by Joseph Chamberlain from 1897. According to this, while tariffs were raised for imports from all countries outside the British Empire, agricultural products from the Dominions were allowed to enter Britain free of duty. In return, the Dominions gave preferential treatment to manufactured goods imported from Britain. As a result, trade within the British Empire increased slightly. However, its global effect was negative as the British Empire reduced its trade with the rest of the world. Furthermore, even though the agreements may have strengthened imperial bonds, they failed to protect domestic farmers from foreign imports. With modifications, Imperial Preference was maintained after World War II, and provided a major stumbling block to British entry into the EEC (European integration). When Britain did join in 1973, it had to abandon most of its preferential trade agreements, apart from the continued partial exemption of New Zealand dairy products from import duties.

decolonization; Depression, the Great; protectionism

Ottawa Agreements (1932) A series of agreements on tariffs and trade between Britain and its DOMINIONS. They were concluded at the Imperial Economic Conference, held at Ottawa, and constituted a system of imperial preference to counter the impact of the Great DEPRESSION. They provided for quotas of meat, wheat, dairy goods, and fruit from the dominions to enter Britain free of duty. In return, tariff benefits would be granted by the dominions to imported British manufactured goods. The economic gains were helpful but not massive. After World War II the benefits were steadily eroded, and, with the prospect of British entry into the EUROPEAN ECONOMIC COMMUNITY, the agreements became increasingly dispensable: although seriously considered during the 1961–63 discussions, they played little part in the entry negotiations of 1971–72 apart from the question of New Zealand dairy products.