Chamberlain's imperial preference

Question 1

Explain how attitudes to free trade were changing

Answer 1

• Competition from Europe, especially the new Germany, had been growing and other industrial and trading rivals were building up e.g. the USA and Japan.
• Free trade was not working as well for Britain in these circumstances, and some people began talking about the reintroduction of protection.
• The agricultural depression that affected the last 1⁄4 of the 19th century was a problem for Britain, but Empire trade and supplies helped Britain by preventing this from becoming too serious. This delayed the need to review the policy of free trade.

Question 2

Who was Joseph Chamberlain

Answer 2

• A liberal Unionist who was a great supporter of the Empire.
• Was colonial secretary from 1895-1903.
• He raised the idea of some trade protection again.

Question 3

Explain Joseph Chamberlain’s policy of Imperial Preference

Answer 3

• The opportunity to take even more benefit from the Empire and to help the economies of Empire countries was linked to his ideas.
• His idea was for ‘Imperial Preference’ which meant that Britain and its Empire would trade together freely but they would all protect themselves from foreign competition.
• This was discussed at the 1902 Colonial Conference in London, and the leaders of countries present, mostly Dominions like Australia, Canada, New Zealand, Newfoundland, Natal and Cape Colony seemed interested.
• The idea would have given a boost to imperial trade through mutual customs agreements and protective tariffs against imports from non-imperial powers.
  -> Chamberlain believed that imperial trade was preferable because it would be strategically reliable in times of emergency.

Question 4

Explain the opposition to imperial preference

Answer 4

• Those manufacturers who traded mostly with non-Empire countries wanted to stop this idea because it might reduce their profits.
• Bankers and investors who had business links with non-Empire countries objected.
• Some people pointed out that the Empire was not completely self-sufficient and so this might cause problems.
• Most of the public still had an almost emotional link to the idea of free trade and an irrational belief that it was still working for Britain.

Question 5

What was the aftermath of imperial preference discussions

Answer 5

• Many of the Dominions were disappointed when Imperial Preference was not implemented.
• Some looked for trade agreements with other countries instead e.g. Canada made its own trade agreements with Germany, France, Italy and Japan.
• Australia, New Zealand and South Africa all imposed their own import tariffs as a means of asserting their national interests over any loyalties or ties to Britain.
• In India, British textiles and goods were boycotted and burned in the streets as the swadeshi (self-sufficiency) movement sought to undermine the Raj in the years after 1905.