Imperial Preference
Encyclopedia
Imperial Preference was a proposed system of reciprocally-levelled tariff
s or free trade
agreements between the dominion
s and colonies
within the British Empire
. As Commonwealth Preference, the proposal was later revived in connection with the members of the Commonwealth of Nations
.
Especially in the early 1900s, Imperial Preference was seen as a way of promoting unity within the British Empire and sustaining Britain's position as a global power in the face of increased competition from the protectionist-minded Germany
and United States
.
The idea was particularly associated with Joseph Chamberlain
, who resigned from the government of Arthur Balfour
in September 1903 in order to be free to campaign for tariff reform. Among those opposing Chamberlain was the Chancellor of the Exchequer
, C. T. Ritchie
, who, guided by the free-trade ideas of the leading economists of the time, such as Sir William Ashley, was vigorously opposed to any scheme of Imperial Preference. This ultimately led to a damaging rift within Balfour's Conservative
-Unionist
coalition government, contributing to its defeat in the 1906 elections
.
During the 1920s, Imperial Preference became popular once more. Prime Minister Baldwin
(1924-29) was a tepid supporter. His Colonial
and Dominions Secretary
, Amery, was one of its strongest supporters and in 1926 established the Empire Marketing Board
to encourage Britons to 'buy Empire'. But Churchill
, Chancellor of the Exchequer in the Baldwin government, and always a free trader, was an opponent. Public opposition to protectionism contributed to the Conservative loss of power in the 1923
and 1929 elections
and the creation of the first and second Labour governments.
In 1932, representatives of Britain, the Dominions, and the Colonies held the Commonwealth Conference on Economic Consultation and Co-operation
in Ottawa
, Canada
. There was initial agreement on Imperial Preference. But the incompetence and tactless manner of British Dominions Secretary J. H. Thomas so alienated Dominion prime ministers that an opportunity was missed.
In 1935, the Canadian P.M.
, R. B. Bennett
, a Conservative
who supported Imperial Preference, was replaced by a Liberal
, W. L. M. King
. King responded to pressure from U.S.
Secretary of State
, Hull
and abandoned Imperial Preference. The United States was determined to maintain its tariff protections and access to markets, but was vociferously opposed to any such preferences enjoyed by other countries. In the case of the Commonwealth, the U.S. was hostile to it from its inceptions, notwithstanding the fact that in the cases of Canada, Australia, New Zealand and South Africa, there was overwhelmingly preference for a system anchored by the United Kingdom rather than the U.S.
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
s or free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
agreements between the dominion
Dominion
A dominion, often Dominion, refers to one of a group of autonomous polities that were nominally under British sovereignty, constituting the British Empire and British Commonwealth, beginning in the latter part of the 19th century. They have included Canada, Australia, New Zealand, Newfoundland,...
s and colonies
Colony
In politics and history, a colony is a territory under the immediate political control of a state. For colonies in antiquity, city-states would often found their own colonies. Some colonies were historically countries, while others were territories without definite statehood from their inception....
within the British Empire
British Empire
The British Empire comprised the dominions, colonies, protectorates, mandates and other territories ruled or administered by the United Kingdom. It originated with the overseas colonies and trading posts established by England in the late 16th and early 17th centuries. At its height, it was the...
. As Commonwealth Preference, the proposal was later revived in connection with the members of the Commonwealth of Nations
Commonwealth of Nations
The Commonwealth of Nations, normally referred to as the Commonwealth and formerly known as the British Commonwealth, is an intergovernmental organisation of fifty-four independent member states...
.
Especially in the early 1900s, Imperial Preference was seen as a way of promoting unity within the British Empire and sustaining Britain's position as a global power in the face of increased competition from the protectionist-minded Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
The idea was particularly associated with Joseph Chamberlain
Joseph Chamberlain
Joseph Chamberlain was an influential British politician and statesman. Unlike most major politicians of the time, he was a self-made businessman and had not attended Oxford or Cambridge University....
, who resigned from the government of Arthur Balfour
Arthur Balfour
Arthur James Balfour, 1st Earl of Balfour, KG, OM, PC, DL was a British Conservative politician and statesman...
in September 1903 in order to be free to campaign for tariff reform. Among those opposing Chamberlain was the Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
, C. T. Ritchie
Charles Thomson Ritchie
Charles Thomson Ritchie, 1st Baron Ritchie of Dundee PC was a British businessman and Conservative politician who sat in the House of Commons from 1874 until 1905 when he was raised to the peerage...
, who, guided by the free-trade ideas of the leading economists of the time, such as Sir William Ashley, was vigorously opposed to any scheme of Imperial Preference. This ultimately led to a damaging rift within Balfour's Conservative
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
-Unionist
Liberal Unionist Party
The Liberal Unionist Party was a British political party that was formed in 1886 by a faction that broke away from the Liberal Party. Led by Lord Hartington and Joseph Chamberlain, the party formed a political alliance with the Conservative Party in opposition to Irish Home Rule...
coalition government, contributing to its defeat in the 1906 elections
United Kingdom general election, 1906
-Seats summary:-See also:*MPs elected in the United Kingdom general election, 1906*The Parliamentary Franchise in the United Kingdom 1885-1918-External links:***-References:*F. W. S. Craig, British Electoral Facts: 1832-1987**...
.
During the 1920s, Imperial Preference became popular once more. Prime Minister Baldwin
Stanley Baldwin
Stanley Baldwin, 1st Earl Baldwin of Bewdley, KG, PC was a British Conservative politician, who dominated the government in his country between the two world wars...
(1924-29) was a tepid supporter. His Colonial
Secretary of State for the Colonies
The Secretary of State for the Colonies or Colonial Secretary was the British Cabinet minister in charge of managing the United Kingdom's various colonial dependencies....
and Dominions Secretary
Secretary of State for Dominion Affairs
The position of Secretary of State for Dominion Affairs was a British cabinet level position created in 1925 responsible for British relations with the Dominions — Canada, Australia, New Zealand, South Africa, Newfoundland, and the Irish Free State, as well as the self-governing colony of...
, Amery, was one of its strongest supporters and in 1926 established the Empire Marketing Board
Empire Marketing Board
The Empire Marketing Board was formed in May 1926 by the Colonial Secretary Leo Amery to promote inter-Empire trade and to persuade consumers to 'Buy Empire'...
to encourage Britons to 'buy Empire'. But Churchill
Winston Churchill
Sir Winston Leonard Spencer-Churchill, was a predominantly Conservative British politician and statesman known for his leadership of the United Kingdom during the Second World War. He is widely regarded as one of the greatest wartime leaders of the century and served as Prime Minister twice...
, Chancellor of the Exchequer in the Baldwin government, and always a free trader, was an opponent. Public opposition to protectionism contributed to the Conservative loss of power in the 1923
United Kingdom general election, 1923
-Seats summary:-References:*F. W. S. Craig, British Electoral Facts: 1832-1987*-External links:***...
and 1929 elections
United Kingdom general election, 1929
-Seats summary:-References:*F. W. S. Craig, British Electoral Facts: 1832-1987*-External links:***...
and the creation of the first and second Labour governments.
In 1932, representatives of Britain, the Dominions, and the Colonies held the Commonwealth Conference on Economic Consultation and Co-operation
British Empire Economic Conference
The British Empire Economic Conference was a 1932 conference of British colonies and the autonomous dominions held to discuss the Great Depression. It was held between 21 July and 20 August in Ottawa.The conference saw the group admit the failure of the gold standard and abandon attempts to...
in Ottawa
Ottawa
Ottawa is the capital of Canada, the second largest city in the Province of Ontario, and the fourth largest city in the country. The city is located on the south bank of the Ottawa River in the eastern portion of Southern Ontario...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. There was initial agreement on Imperial Preference. But the incompetence and tactless manner of British Dominions Secretary J. H. Thomas so alienated Dominion prime ministers that an opportunity was missed.
In 1935, the Canadian P.M.
Prime Minister of Canada
The Prime Minister of Canada is the primary minister of the Crown, chairman of the Cabinet, and thus head of government for Canada, charged with advising the Canadian monarch or viceroy on the exercise of the executive powers vested in them by the constitution...
, R. B. Bennett
R. B. Bennett
Richard Bedford Bennett, 1st Viscount Bennett, PC, KC was a Canadian lawyer, businessman, politician, and philanthropist. He served as the 11th Prime Minister of Canada from August 7, 1930, to October 23, 1935, during the worst of the Great Depression years...
, a Conservative
Conservative Party of Canada (historical)
The Conservative Party of Canada has gone by a variety of names over the years since Canadian Confederation. Initially known as the "Liberal-Conservative Party", it dropped "Liberal" from its name in 1873, although many of its candidates continued to use this name.As a result of World War I and the...
who supported Imperial Preference, was replaced by a Liberal
Liberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...
, W. L. M. King
William Lyon Mackenzie King
William Lyon Mackenzie King, PC, OM, CMG was the dominant Canadian political leader from the 1920s through the 1940s. He served as the tenth Prime Minister of Canada from December 29, 1921 to June 28, 1926; from September 25, 1926 to August 7, 1930; and from October 23, 1935 to November 15, 1948...
. King responded to pressure from U.S.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
Secretary of State
United States Secretary of State
The United States Secretary of State is the head of the United States Department of State, concerned with foreign affairs. The Secretary is a member of the Cabinet and the highest-ranking cabinet secretary both in line of succession and order of precedence...
, Hull
Cordell Hull
Cordell Hull was an American politician from the U.S. state of Tennessee. He is best known as the longest-serving Secretary of State, holding the position for 11 years in the administration of President Franklin Delano Roosevelt during much of World War II...
and abandoned Imperial Preference. The United States was determined to maintain its tariff protections and access to markets, but was vociferously opposed to any such preferences enjoyed by other countries. In the case of the Commonwealth, the U.S. was hostile to it from its inceptions, notwithstanding the fact that in the cases of Canada, Australia, New Zealand and South Africa, there was overwhelmingly preference for a system anchored by the United Kingdom rather than the U.S.