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1500
European fishermen in the Gulf of St. Lawrence
After the discovery of Newfoundland, European fishermen participated in cod fishing close to Labrador and Newfoundland Island and in the Gulf of St. Lawrence. During this period, fish was in great demand in Europe for religious reasons: the Catholic Church had abstinence days where they banned meat consumption. Whaling was a very profitable economic activity at this time. Whale blubber was used to make soap, cosmetics and even paint. In conclusion, fishing was an important economic activity. -
Creation of the Company of One Hundred Associates
Founded by Cardinal Richelieu in 1627. It was financed by approximately one hundred French shareholders. This company had a monopoly in the trading industry, which was financed by the shareholders that shared the profits and the losses in proportion to their initial investments. -
Start of mercantilism
The major European powers based the development of their economy on mercantilism. Mercantilism bases a nation's prosperity on the accumulation of gold and silver. According to the this economic theory, colonizing states should export the greatest possible quantity of goods in order to become wealthy from profits generated by their exports. Mercantilism helped the mother-country get rich by having them produce manufactured goods using raw materials from their colonies, which they could then sell. -
Creation of the Hudson's Bay Company
The Company was founded in 1670. The company built trading posts throughout the entire region to engage in trade with the Cree nation. Fur trade in this region was the subject of a bitter rivalry between French and Great Britain and resulted in a series of land and sea battles. -
Growth of triangular trade
The French organized commercial trades between France, New France and the West Indies. The triangular trade helped France to get rich by taking advantage of the resources of its colonies and by selling manufactured goods to its colonies. There were 3 major principles of the triangle trade:
1. Boats cannot leave the port empty-handed.
2. Boats leaving New France or the West Indies must transport natural resources to France
3. Boats leaving France must transport manufactures goods. -
Completion of the Chemin du Roy
To help with economic trade, Gilles Hocquart wanted to create a road between Montreal and Quebec City. This road will pass through Trois-Rivieres. It's called "Chemin du Roy" -
Establishment of British Merchants in the Province of Quebec
More than 200 British merchants will establish themselves in the Province of Quebec. They will export natural resources and import manufactured goods from Great Britain. -
Timber Trade
Timber will replace the fur trade as the leading export to Great Britain. The lumber industry became the engine of the Canadian economy. The exploitation of our forests will cause the development of new regions, create new jobs and increase the influence of the British merchant class. -
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British protectionism
After the Conquest, the colony did not experience any drastic changes. Great Britain's colonial economic policy remained similar to mercantilism that had been in effect under the French regime.Until, Great Britain maintained a policy of protectionism that favoured the purchasing of resources from within the Empire. Basically the definition of protectionism is an economic policy established by a state or government in order to protect the economy of the country or empire from foreign competition. -
Founding of the Bank of Montreal
The timber trade was so lucrative that a bank was created (The Bank of Montreal) -
Merger of the Northwest Company with the Hudson's Bay Company
Rivalry between the Hudson's Bay Company and the Northwest Company was very costly. Both companies competed against each other, spending large amounts of money to build trading posts while the demand for fur declines. There were battles between the two companies. In 1821, the two companies were encouraged by the British government to fuse under the name of the Hudson's Bay Company. -
Construction of the Lachine Canal
In order to transport merchandise inland by water, the first canal was built in Montreal in 1825, the Lachine Canal. -
Beggining of the agricultural crisis: falling wheat production
Agriculture will experience many difficulties. Great Britain will slowly stop buying wheat from Lower Canada. Poor soil, outdated farming techniques and poor weather conditions will cause an economic crisis in Lower Canada. As a result, Lower Canada will have to buy its wheat from Upper Canada as of 1830. -
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The first phase of Industrialization
Manufactures were slowly replacing the artisan workshop. Machine now permitted the division of labour and increased productivity. Industries were concentrated in the cities of Montreal and Quebec City. Industrialisation will occur for example in the following sectors: textile, tobacco, mining...Also, the Industrialization leads to urbanisation. -
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Reciprocity Treaty
The United States and United Canada will sign the Reciprocity Treaty in 1854. According to this treaty, raw materials or primary manufacturing products (flour, sawed wood) could be traded between the two partners without having to pay customs duties. This Treaty benefited Canadian farmers. The treaty came to an end in 1866 -
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Economic crisis
An economic crisis erupted in Canada. During this time, the Canadian market was flooded with goods from the United States. Many manufacturers were unable to compete with the American market. -
National Policy
Conservative Prime Minister John A Macdonald tried to rectify the situation of the economic crisis of 1873, by proposing a policy of industrial development: the National Policy. Canada will impose custom tariffs on imported manufactured goods. For Canadian consumers, local goods will cost less. Therefore, more people will buy "made in Canada" because it will cost less. This will stimulate the Canadian economy. -
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The second phase of industrialization
This second phase was characterized by the exploitation of natural resources and the rapid expansion of industrial sectors which developed due to new energy sources: hydroelectricity and oil. New industries will flourish: hydroelectricity, aluminum, minerals, and pulp and paper. Also, further regions will also expand and become more industrialized. -
New York Stock Market Crash
The New York Stock Market Crash will affect the economy of most of the countries of the modern world. -
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The Great Depression
During the Great Depression (which started after the crash of the New York Stock Market), banks and factories closed their doors. Many bankruptcies occurred. The number of unemployed workers grew and grew. We estimate that 25% of the population was out of work. -
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State intervention during the Great Depression
During the crisis, the Federal and Provincial governments provided assistence to the poor and encouraged agricultural colonization to help people who lived in the city. In order to help the population, the government introduced direct aid, created labour camps and adopted laws to support farmers. -
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War production
With the declaration of war the economic crisis of the 1930's disappeared. -
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Quiet Revolution
During the 1960s, Quebec experienced major political, social, cultural and economic changes: the period of the Quiet Revolution. As of 1960, the state took charge of the management of certain social programs, including education and health, and became a welfare state. The state also invested considerable sums in the construction of new institutions and public infrastructures. The government pumped funds into the economy and enhanced the purchasing power of consumers, while also creating jobs. -
Nationalization of electricity
The government of Quebec bought out most of the private electricity companies and integrated them into Hydro-Quebec in order to nationalize the production and distribution of electricity. -
North American Free Trade Agreement
On January 1st 1989, the Canada-United States Free Trade Agreement came into effect, eliminating almost all customs duties between Canada and the United States. The treaty was renegotiated to include Mexico, which agreed to participate in the North American Free Trade Agreement (NAFTA), which came into effect January 1st 1994. This agreement includes Canada, United States and Mexico.
