What economic changes took place following the Act of Union ?
 

Great Britain rejected economic protectionism and adopted free trade in 1846 which meant that British North America's export products were no longer protected by favorable British tariffs. Canada's export trade was reduced considerably since her wheat and timber now had to compete in an open market with products from other countries.

To make up for the loss of the British market the British North American colonies signed
a ten year Reciprocity Treaty with the United States in 1854. The agreement

• provided free entry (no tariffs) for the natural products

(wheat, fish, timber,coal) of each country into the markets of the other.
• allowed both countries free access to each other's fisheries.
• allowed Canada free navigation on Lake Michigan and the United States

the same privileges on the St. Lawrence River.

Further improvements were also made to the transportation system.

• More canals were built and deepened and more railways were built between 1850 and 1860.
• The Grand Trunk Railway stretched from Sarnia to Rivière-du Loup and the St. Lawrence & Atlantic connected Montreal to Portland, Maine.

Try the following questions on economic changes.