Trade and Commerce (1857 - 1969)

Key events in relation to Trade and Commerce

T & C Under British Empire

• Key Facts (1947-67)

  • Importance of trade and commerce in maintaining imperial power.

  • Trade dynamics shifted post-WWII.

• Trade & Economic Shifts

  • Free Trade: Predominant during 19th century, faced challenges post-WWI.

  • Protectionism emerged during economic crises.

  • Empire served as an "economic safety net" (e.g., Great Depression impact).

Ottawa Conference (1932)

• Causes (for shift away from free trade & towards protectionism)

  • Great Depression led to drastic trade reductions.

  • Need to protect British industry amidst global competition.

  • Dominions advocated for preferential trade to enhance their economies.

• Key Decisions

  • Introduced Imperial Preference: lower tariffs among Empire, higher on non-Empire goods.

  • Shift from free trade marked decline of traditional economic policy.

• Impact

  • Short-term: Boost in intra-Empire trade and protection for British industries, allows the dominions to benefit, short-term resistance in trading with the US (as they continue to take Britain's position as a global superpower)

  • Long-term: Set groundwork for economic realignment post-war, and Britain's ultimate decline as a superpower

Economic Challenges and Responses

• Gold Standard

  • Stability for currencies but limited UK competitiveness; abandoned in 1931.

• Sterling Area

  • Attempt to maintain economic influence post-colonialism; ultimately failed against US competition.

Exam Discussion Points**

1. Ottawa Conference: Analyze protectionism vs. free trade shift.

2. WWII Impact: Explore changes in Britain-Empire economic relationships.

3. Sterling Area: Evaluate its advantages/disadvantages.

4. Gold Standard: Discuss its impact on Britain's economy.

Final Reflections

• Post-1945 Britain faced economic decline but attempted to maintain global influence via trade.

• The Empire’s economic power diminished, and Britain's focus shifted to Europe.