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General Agreement on Tariffs and Trade (GATT)

The General Agreement on Tariffs and Trade (GATT) was an international trade agreement. It was signed by 23 nations, including Canada, in 1947 and came into effect on 1 January 1948. It was refined over eight rounds of negotiations, which led to the creation of the World Trade Organization (WTO). It replaced the GATT on 1 January 1995. The GATT was focused on trade in goods. It aimed to liberalize trade by reducing tariffs and removing quotas among member countries. Each member of the GATT was expected to open its markets equally to other member nations, removing trade discrimination. The agreements negotiated through GATT reduced average tariffs on industrial goods from 40 per cent (1947) to less than five per cent (1993). It was an early step towards economic globalization.

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Prohibition in Canada

Prohibition in Canada came about as a result of the temperance movement. It called for moderation or total abstinence from alcohol, based on the belief that drinking was responsible for many of society’s ills. The Canada Temperance Act (Scott Act) of 1878 gave local governments the “local option” to ban the sale of alcohol. Prohibition was first enacted on a provincial basis in Prince Edward Island in 1901. It became law in the remaining provinces, as well as in Yukon and Newfoundland, during the First World War. Liquor could be legally produced in Canada (but not sold there) and legally exported out of Canadian ports. Most provincial laws were repealed in the 1920s. PEI was the last to give up the “the noble experiment” in 1948.  

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The Great Depression in Canada

The Great Depression of the early 1930s was a worldwide social and economic shock. Few countries were affected as severely as Canada. Millions of Canadians were left unemployed, hungry and often homeless. The decade became known as the Dirty Thirties due to a crippling droughtin the Prairies, as well as Canada’s dependence on raw material and farm exports. Widespread losses of jobs and savings transformed the country. The Depression triggered the birth of social welfare and the rise of populist political movements. It also led the government to take a more activist role in the economy.