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Trade Agreements Between Australia And Canada

Australian trade has not been as good under the new agreement. Between 1931 and 1935, Australian exports to Canada increased by less than 50%. Some important Australian exports, including butter, meat and canned fruit, even declined during this period. Australia urged Ottawa to extend the deal, but had little success. Australia`s dissatisfaction with Canadian trade policy increased sharply when Mackenzie King was re-elected in 1935. The Depression had reinforced Mackenzie King`s traditional opposition to imperial preferences and he strove to seek freer trade with the United States. The 1935 Canada-U.S. trade agreement, which reduced the value of Australia`s preference for dried fruits, was hardly designed to make Canada popular with Australian politicians, whose dedication to imperial preferences was not toned down. In the spring of 1936, Canada paid the price for its bad reputation in Canberra, when Australia introduced its new “policy of trade diversion.” In an unfortunate attempt to secure its markets in Britain and balance its trade with the United States, Australia has offered to drastically limit its imports. Fearing that Canada would be an alternative source of limited U.S.

products, Australia added Canada to its program. “Here,” said Canada`s Under Secretary of State for Foreign Affairs, “there was economic nationalism with revenge.” The earliest link between the two nations was the deportation of Canadian rebels who sparked an insurrection in Upper and Lower Canada to Australia. One hundred and fifty-four convicted rebels from Upper Canada were sent to Australian shores. Those who participated in the rebellions in Upper Canada were sent to the land of Van Diemen (present-day Tasmania). There are two monuments in Hobart, the capital of Tasmania, that commemorate the presence of Canadian prisoners in Tasmania, one in Sandy Bay and the other in Prince`s Park, Battery Point. In addition to traditional sectors such as mining and transportation, Canadian companies have significant opportunities in the infrastructure sector. The Australian Trade and Investment Commission (Austrade) is forecasting a total investment of up to $125 billion in the Greenfield and Brownfield projects by 2019-2020, resulting in significant opportunities for Canadian engineering, acquisition and construction management companies, as well as Tier 2 and Tier 2 and Tier 3 equipment and service providers. In 2010, Australia was Canada`s 16th largest destination for its goods, with Canada ranking 23rd largest for Australian goods. Bilateral merchandise trade amounted to $US 3.4 billion in 2010, with Canada`s exports to Australia reaching $US 1.8 billion and Australia`s exports to Canada $US 1.6 billion.

[8] The romanticism of the Empire made a much smaller impression on the Canadian government. However, he was soon forced to reconsider his relations with the Australian colonies. The collapse of world trade, the relentless pressure exerted by deforestation interests in Vancouver, and the insistent arguments of Sir Sandford Fleming, a leading supporter of the Pacific cable, led him to give new meaning to the colonies. In May 1893, the cabinet agreed to grant Australian James Huddart a grant of £25,000 to provide regular steamboat service between Canada and New South Wales. . . .