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1497
Discovery of Newfoudland
In 1497, Newfoundland was discovered by John Cabot. After the discovery, European fisherman participated in cod fishing close to Labrador and Newfoundland and in the Gulf of the St. Lawrence. This was ideal for the fisherman because in Europe fish was in great demand for religious reasons. -
Monopoly of Merchant Companies
From 1600 to 1603, the King of France granted a trading monopoly to merchant companies (The Company of One Hundred Associates).
The fur trade drove the colonial economy. Pelts such as beaver pelts were exported to France where they served in the manufacture of goods such as felt hats. The French made alliances with multiple Aboriginals to take advantage of the fur trade. -
Mercantilist Policies
In 1663, the King of France cancelled the monopoly of the merchant companies and established a royal government which would take over trade in the colony. -
Jean Talon: Diversifying the economy
From 1665 to 1668 and 1670 to 1672, Jean Talon tried to make the economy of the colony independent through self-production. He imported domestic animals from France. He diversified agriculture with the addition of wheat cultivation, cereals, vegetables and hemp. He also encouraged the creation of small workshops that produced wool and leather and transformed hemp into rope and linen into sails. Jean Talon also established a brewery and founded a naval shipyard. -
Triangular Trade
Around 1670, Jean Talon set aside some principles of mercantilism and established the triangular trade with France and the West Indies. The triangular trade allowed the colonies to sell surpluses and still give their raw materials to their mother country. -
Growth of the Triangular Trade
In 1713, the triangular trade reached its peak because of the founding of Louisbourg which is a large commercial port where ships could dock all year round. -
Diversified economy
Around 1730, Intendant Hocquart helped the local economy by establishing ironworks in Trois-Rivières and a shipyard in Québec. He also oversaw the construction of the Chemin du Roy between Québec and Montréal. -
Agriculture
Around 1750, farming was the main economic activity of the colony. Nearly 90% of the population depended on agriculture for a living. -
Control of the Fur by British Merchants
After the war of the Conquest, merchants from Great Britain and the Thirteen Colonies settled in Quebec and Montreal and took over the colony's economy and the fur trade. -
Founding of the Northwest Company
After the Treaty of Paris of 1783, Great Britain ceded areas south of the Great Lakes to the United States. Montreal merchants no longer had their trade networks, so they founded the Northwest Company to compete with the Hudson's Bay Company. -
Timber trade exceeds fur exports
After Napolean built his continental blockade, Great Britain couldn't access the wood supply from northern Europe so they then turned to Canada for its timber supply. There was a large demand for timber and since fur coats and hats weren't a big trend like they were, the timber trade exceeded fur exports. -
Period of construction
From 1820 to 1850 there was a period of construction: canals, locks, railways and roads facilitated the transportation of merchandise and stimulated the economy. Domestic trade increased and trade with the United States increased. -
Merger of the North West company with the Hudson's Bay Company
Since there was a decline in the exports of fur and the colony was taken over by the British. There was no point in having two competing fur trade companies. Therefore the North West company decided to merge with the Hudson's Bay Company. -
Logging Industry
Around the 1830s, the logging industry developed in the Laurentian, Ouataouais, Saguenay, Mauricie and Gaspésie regions. Many farmers worked in logging camps as lumberjacks or log drivers, to supplement their income. -
Agricultural crisis
In the 1830s, an agricultural crisis hit Lower Canada. The Canadians then resorted to subsitence farming and poverty forced thousands of farmers to leave and look for jobs in urban areas. Wheat production dropped and Lower Canada had to start importing wheat. -
The End of Great Britain's Protectionism Policy
In the 1840's, Great Britain abandoned its protectionist policy and adopted the free trade. This affected the colony's economy because it depended on exports to Great Britain. -
Reciprocity Treaty
In 1854, Great Britain signed the Treaty of Reciprocity on behalf of Canada, this free trade agreement was based on the export and import of raw materials and farming products between Canada and the United States. At the beginning of the 1860s, the Americans did not renew the free trade treaty signed in 1854 for a ten-year period. -
First Phase of Industrialization
Thr first phase of industrialization from 1860 to 1896 was dependant on coal as the main source of energy. The first phase was characterized by the growth of the manufacturing industry and machines taking over jobs. A large railway was built and canals were widened this all facilitated the distribution of goods. -
Economic Crisis
In 1873, an economic crisis erupted in Canada, the Canadian market was flooded with goods from the United States. Many Canadian manufacturers couldn't compete with the American market. This led to Macdonald's National Policy because he wanted to rectify the situation. -
Unions
Around the end of the 19th century, workers united to fight for their rights and improve their working conditions. This was the beggining of unionization . The Catholic clergy oversaw the creation of labour unions. -
John A. Macdonald: National Policy
In 1879, John A. Macdonald implemented his National Policy with 3 main objectives. Increase in protectionist tariffs: this was to protect the Canadian industry by adding duties on goods manufactured elsewhere. The expansion of the railway network: this helps industrialization and facilitates transportation of the immigrants to new regions. To stimulate immigration: this encourages settlement in the West, creates a consumer market and increases the labor force. -
Second Phase of Industrialization
The second phase of industrialization from 1896 to 1929 was dependant on hydroelectricity as an energy source. Because of hydroelectricity heavy industries and the variety of electrical consumer goods increased. -
The Great Depression
From 1930 to 1939, the New York Stock Market Crash affected the economy of most of the countries of the modern world. It had a lot of dramatic economic consequences: many companies went bankrupt, factories closed and jobs were lost. -
State Intervention in the Economy
During the Quiet Revolution, the State started to intervene in the economy. The government of Quebec nationalized electricity, set up crown corporations and hired thousands of people to work in public and semi-public sectors. The State intervention continued into the 1970s mainly in the sector of hydroelectricity. -
North American Free Trade Agreement (NAFTA)
During the 20th century, a reduction in customs and tariffs was negotiated by Canada and the United States. Canada signed the North American Free Trade Agreement with the United States and Mexico, which permitted free circulation of goods between these countries.
