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{{Infobox Lecture
|image=
|image_caption=
| cours = [[International Economic History]]
| faculté =
| département =
| professeurs = [[Mary O'Sullivan]]<ref>https://www.unige.ch/sciences-societe/dehes/membres/mary-osullivan/</ref><ref>https://www.researchgate.net/profile/Mary_Osullivan14</ref><ref>http://www.levyinstitute.org/scholars/mary-osullivan</ref>
| enregistrement =
| lectures =
*[[Introductory aspects of the International Economic History Course]]
*[[Introduction to the International Economic History Course]]
*[[Between Free Trade and Protectionism: 1846 - 1914]]
*[[International triumph of the gold standard: 1871 - 1914]]
*[[International Finance and Investment: 1860 - 1914]]
*[[New Challenges in International Trade: 1914 - 1929]]
*[[New monetary and financial order: 1914 - 1929]]
*[[Dark history for the world economy: 1930 - 1945]]
*[[Crises and regulations: 1930 - 1945]]
*[[Divided trade policies: 1946 - 1973]]
*[[Bretton Woods System: 1944 - 1973]]
*[[Money, Finance and the World Economy: 1974 - 2000]]
*[[Trade and the World Economy: 1974 - 2000]]
}}
A battle took place in the 19th century between the supporters of free trade and their opponents who supported protectionism. When we talk about free trade, we are talking about an organization of international trade relations in which states do not put any obstacle to the entry of foreign goods. The goods produced abroad are intended to be sold or processed on the national territory. Protectionism aims to protect domestic producers from competition from foreign productions. Such protectionism can be either tariff or non-tariff, such as import quotas or red tape that creates barriers. The level of tariffs is used as an estimate of the level of protectionism. When we look at tariffs, we use an estimate to get an idea of the trends we have.
A battle took place in the 19th century between the supporters of free trade and their opponents who supported protectionism. When we talk about free trade, we are talking about an organization of international trade relations in which states do not put any obstacle to the entry of foreign goods. The goods produced abroad are intended to be sold or processed on the national territory. Protectionism aims to protect domestic producers from competition from foreign productions. Such protectionism can be either tariff or non-tariff, such as import quotas or red tape that creates barriers. The level of tariffs is used as an estimate of the level of protectionism. When we look at tariffs, we use an estimate to get an idea of the trends we have.


If we are talking about a transition between these two policies, such a transition applies the dismantling of protectionist measures and in particular the abolition of customs duties.  
If we are talking about a transition between these two policies, such a transition applies the dismantling of protectionist measures and in particular the abolition of customs duties.  


If we look at the trade policies of Europeans in the 17th and 18th centuries, we are talking about mercantilism which aims to reduce imports to a minimum and increase exports to a maximum. The aim of mercantilism is to concentrate as many precious metals as possible in a country. Towards the end of the 18th century, ideas began to change, notably with Adam Smith's 1776 publication An Inquiry into the Nature and Causes of the Wealth of Nations. Changing ideas does not necessarily begin in Scotland, but also in France with the physiocrats. There is an ideological tendency that leads to an opening to freer trade relations between nations.
If we look at the trade policies of Europeans in the 17th and 18th centuries, we are talking about mercantilism which aims to reduce imports to a minimum and increase exports to a maximum. The aim of mercantilism is to concentrate as many precious metals as possible in a country. Towards the end of the 18th century, ideas began to change, notably with Adam Smith's 1776 publication Recherches sur la nature et les causes de la richesse des nations attaquant le mercantilisme. Changing ideas does not necessarily begin in Scotland, but also in France with the physiocrats. There is an ideological tendency that leads to an opening to freer trade relations between nations.


[[File:Anticipation, or the approaching fate of the French Commercial Treaty by James Gillray.jpg|thumb|"Anticipation, or the imminent death of the French Trade Treaty." Cartoon of James Gillray anticipating the conflict in the British Parliament over the Treaty of Eden.]]
[[File:Anticipation, or the approaching fate of the French Commercial Treaty by James Gillray.jpg|thumb|"Anticipation, or the imminent death of the French Trade Treaty." Cartoon of James Gillray anticipating the conflict in the British Parliament over the Treaty of Eden.]]
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{{Translations
{{Translations
| fr = Entre libre-échange et protectionnisme : 1846 – 1914
| fr =
| es = Entre el libre comercio y el proteccionismo: 1846 - 1914
| es =  
| it = Tra libero scambio e protezionismo: 1846 - 1914
}}
}}


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In the United Kingdom, the political struggle between supporters of free trade and protectionism began in 1815. The powerful Gentry in parliament passed the first grain law of the 19th century to protect British agriculture from importing foreign grain. The goal of Corn Laws is to keep grain prices high.
In the United Kingdom, the political struggle between supporters of free trade and protectionism began in 1815. The powerful Gentry in parliament passed the first grain law of the 19th century to protect British agriculture from importing foreign grain. The goal of Corn Laws is to keep grain prices high.


Therefore, there are other implications. This pushes up the workers' wages because wheat continues to represent a very important part of the workers' diet. If we decide to maintain prices at a fairly high level this means that the cost of living is also maintained at a rather high level. There is a negative reaction from industrialists to farmers' policies since they want to increase their foreign market share by playing on wages in order to make their products cheaper on foreign markets.  
Therefore, there are other implications. This pushes up the wages of the workers because wheat continues to represent a very important part of the workers' diet and if we decide to maintain prices at a fairly high level this means that the cost of living is also maintained at a rather high level. There is a negative reaction from industrialists to farmers' policies since they want to increase their foreign market share by playing on wages in order to make their products cheaper on foreign markets.  


In 1815, the agricultural owners had much influence, and the opposition of the industrialists to Corn Laws failed. We see the structure of the opposition, which will lead to another result a little later. The power of industrialists increased during the 18th century, and free traders played on the idea that rising food prices negatively influenced wages. By reducing food imports from countries with an agricultural surplus, Corn Laws reduce export opportunities for manufactured goods to other countries. These two arguments are often used to demand a reduction in customs tariffs. With the intensification of the United Kingdom's industrialisation process, we see that the industrial sector is becoming more important.
In 1815, the agricultural owners had much influence and the opposition of the industrialists to Corn Laws failed. We see the structure of the opposition which will lead to another result a little later. The power of industrialists increased during the 18th century and free traders played on the idea that rising food prices had a negative influence on wages. By reducing food imports from countries with agricultural surplus, Corn Laws reduce export opportunities for manufactured goods to other countries. These two arguments are often used to demand a reduction in customs tariffs. With the intensification of the industrialization process in the United Kingdom, we see that the industrial sector is becoming more important.


There are other reasons why there is increasing political support as there is a growing population and increasing urbanisation making Britain's food autonomy increasingly difficult. There is a concern in Britain to feed itself without imports.
There are other reasons why there is increasing political support as there is a growing population and increasing urbanisation making Britain's food autonomy increasingly difficult. There is a concern in Britain to feed itself without imports.
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In 1838, Richard Cobden, an industrialist from Manchester participated in the anti Corn Laws League launching a campaign to convince the most of the free-trade position. In 1841, the battle broke out in parliament. The Whig Party is supported by the merchants in power creating a favourable free trade situation. Still, when the government proposes a reduction in tariffs on wheat and sugar it is a defeat. The Tories won the majority, Robert Peel was appointed Prime Minister of an extremely conservative government. Robert Peel changed his position under Cobden's influence, but his party remained opposed to the abolition of protectionist measures.
In 1838, Richard Cobden, an industrialist from Manchester participated in the anti Corn Laws League launching a campaign to convince the most of the free trade position. In 1841, the battle broke out in parliament. The Whig Party is supported by the merchants who are in power creating a favourable situation for free trade, but when the government proposes a reduction in tariffs on wheat and sugar it is a defeat. The Tories won the majority, Robert Peel was appointed Prime Minister of an extremely conservative government. Robert Peel changed his position under Cobden's influence, but his party remained opposed to the abolition of protectionist measures.


The position changed following the Irish famine in 1845. This measure is supported by the Conservatives and the whigs, but paves the way for free trade in the United Kingdom. Historians consider 1846 to mark the free trade era in the United Kingdom. Following the repeal of the Corns Laws, we see a split of the Conservative Party. The whigs eliminated other traces of protectionism and by 1860 most tariffs had almost disappeared in the United Kingdom.
The position changed following the Irish famine in 1845. This measure is supported by the Conservatives and the whigs, but paves the way for free trade in the United Kingdom. 1846 is considered by historians to mark the free trade era in the United Kingdom. Following the repeal of the Corns Laws, we see a split of the Conservative Party. The whigs eliminated other traces of protectionism and by 1860 most tariffs had almost disappeared in the United Kingdom.


In Europe, there is a sharp contrast to the British experience. Most European nations such as France and Prussia see their customs legislation amended several times in favour of free trade. Continental industrialists see protectionism as necessary for their survival in a global economy increasingly dominated by British industrialists. In Europe, farmers and industrialists tend to agree on the benefits of protectionism. Nevertheless, the supporters of liberalism on the continent are gaining more and more weight, the Tories themselves are making efforts to engage liberal politics in France and throughout Europe.
In Europe, there is a sharp contrast to the British experience. Most European nations such as France and Prussia see their customs legislation amended several times in favour of free trade. Continental industrialists see protectionism as necessary for their survival in a global economy increasingly dominated by British industrialists. In Europe, farmers and industrialists tend to agree on the benefits of protectionism. Nevertheless, the supporters of liberalism on the continent are gaining more and more weight, the Tories themselves are making efforts to engage liberal politics in France and throughout Europe.


Cobden began a European tour with stays abroad until 1859 to campaign for free trade. We are beginning to see that there are some tariff reductions in most European countries. Still, these reductions are limited, because they very slightly reduce the protectionist character of continental European countries. In smaller countries, liberalism is growing; Denmark, the Netherlands and Portugal are specialists in international trade. The Netherlands has a different attitude to trade policy, which is rather free trade for quite a long time. These countries continue to maintain the liberal position, but this is not the case for all the small countries such as the Scandinavian countries, which remain protectionist. As for Switzerland, each canton has its own legislation and its own trade policy.
Cobden began a European tour with stays abroad until 1859 to campaign for free trade. We are beginning to see that there are some tariff reductions in most European countries, but these reductions are limited, because they very slightly reduce the protectionist character of continental European countries. In smaller countries, liberalism is growing; Denmark, the Netherlands and Portugal are specialists in international trade. The Netherlands has a different attitude to trade policy, which is rather free trade for quite a long time. These countries continue to maintain the liberal position, but this is not the case for all the small countries such as the Scandinavian countries, which remain protectionist, and as for Switzerland, each canton has its own legislation and its own trade policy.


With the overwhelming majority adhering to the principle of free trade, protectionism remained intact until the 1850s.
With the overwhelming majority adhering to the principle of free trade, protectionism remained intact until the 1850s.


Free trade in Europe really began only with a Franco-British treaty and the publication of a letter from Napoleon III. This letter makes informal negotiations with the United Kingdom public. The Cobden-Chevalier Treaty abolishes all British prohibions to French imports, France for its part reduces its customs tariffs to an average of 15% of the value of its products.  
Free trade in Europe really began only with a Franco-British treaty and the publication of a letter from Napoleon III. This letter makes informal negotiations with the United Kingdom public. It is the Cobden-Chevalier Treaty which abolishes all British prohibions to French imports, France for its part reduces its customs tariffs to an average of 15% of the value of its products.  


The negotiations were led by Michel Chevalier, professor of economics at the Collège de France, pressing William Gladstone, who was then Prime Minister to sign the treaty with his friend Richard Cobden. However, not only the agreement of the British but also that of the French is needed.  
The negotiations were led by Michel Chevalier who was professor of economics at the Collège de France, pressing William Gladstone who was then Prime Minister to sign the treaty with the help of his friend Richard Cobden. However, not only the agreement of the British but also that of the French is needed.  


Napoleon III was committed to free trade ideas and wanted to create a diplomatic rapprochement with the United Kingdom, giving its support to free trade. Thanks to a legislative provision, it is possible for Napoleon III to avoid the parliament which would probably have been fatal to him. In fact, the Cobden-Chevalier treaty was described as a coup by the vast majority of the House of Commons at the time.
Napoleon III was committed to free trade ideas and wanted to create a diplomatic rapprochement with the United Kingdom, giving its support to free trade. Thanks to a legislative provision, it is possible for Napoleon III to avoid the parliament which would probably have been fatal to him. In fact, the Cobden-Chevalier treaty was described as a coup by the vast majority of the House of Commons at the time.


We see that the Cobden-Chevalier Treaty's influence is very important beyond the borders of France and the United Kingdom. A most-favoured-nation clause means that the principle of any advantage granted by one country to another country must be automatically granted to the other countries with which they sign treaties.  
We see that the influence of the Cobden-Chevalier Treaty is very important beyond the borders of France and the United Kingdom. A most-favoured-nation clause means that the principle of any advantage granted by one country to another country must be automatically granted to the other countries with which they sign treaties.  


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Other treaties follow the Cobden-Chevalier Treaty in other countries involved in customs disarmament in Europe. Already in 1861, a Franco-Belgian treaty was signed, Prussia ratified the treaty on behalf of Zollverein with France in 1862, and between 1863 and 1866, most European nations entered a free trade network. During this decade we see a transition between protectionism and a system that seems to be free trade. Even if we can speak of customs disarmament in comparison with the internal situation, it is far from being as complete as that carried out by the United Kingdom.
The Cobden-Chevalier Treaty is followed by other treaties in other countries involved in customs disarmament in Europe. Already in 1861, a Franco-Belgian treaty was signed, Prussia ratified the treaty on behalf of Zollverein with France in 1862, and between 1863 and 1866, most European nations entered a free trade network. During this decade we see a transition between protectionism and a system that seems to be free trade. Even if we can speak of customs disarmament in comparison with the internal situation, it is far from being as complete as that carried out by the United Kingdom.


== Outside Europe: autonomous countries, dominions and colonies ==
== Outside Europe: autonomous countries, dominions and colonies ==
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This table shows that we are not in a pure free trade system. This table also shows that in contrast to the liberal shift seen in Europe, virtually all overseas countries reinforced protectionism during the 1860s to 1880s and, more particularly, overseas countries with political autonomy. For example, for the United States, protectionist policy has played a key role since the independence of the United States.  
This table shows that we are not in a pure free trade system. This table also shows that in contrast to the liberal shift seen in Europe, virtually all overseas countries reinforced protectionism during the 1860s to 1880s and, more particularly, overseas countries with political autonomy. For example, for the United States, protectionist policy has played a key role since the independence of the United States.  


For Paul Bairoch, the protectionist doctrine was born in the United States with Hamilton. There is an opposition between the liberal south and the protectionist north because it is industrializing behind Britain with the Civil War. There is the same fear of American industrialists as those of the French. This moment is the crystallization of the opposition between these two regions between the north, which is antislavery, but it is also a war between the free trade north and the south. The victory of the north is protectionism. Protectionist measures were reinforced in 1866.
For Paul Bairoch, protectionist doctrine was born in the United States with Hamilton. With the Civil War, there is an opposition between the liberal south and the protectionist north because it is industrializing behind Britain. There is the same fear of American industrialists as those of the French. This moment is the crystallization of the opposition between these two regions between the north which is antiesclavagist, but it is also a war between the free trade north and the south. The victory of the north is protectionism. Protectionist measures were reinforced in 1866.


When we look at the United States level, it is no exaggeration to say that from 1866 to 1913, the United States was perhaps the most protectionist of the advanced countries. The tariffs are in the order of 40% to 50%, we must also remember that we are talking about an isolated country, protected by the nature of competition from Europe. We must realize that this geographical aspect must be added to this policy in order to see the market, which is strictly controlled.
When we look at the level in the United States, it is no exaggeration to say that from 1866 to 1913, the United States was perhaps the most protectionist of the advanced countries. The tariffs are in the order of 40% to 50%, we must also remember that we are talking about an isolated country, protected by the nature of competition from Europe. We must realize that this geographical aspect must be added to this policy in order to see the market, which is strictly controlled.


In the British Dominions and especially in Australia and Canada, this period was the implementation of industrialization policy through customs barriers. If we look at the discourse of industrialists in the United States, they talk about protectionism as a policy to promote industrial development. Carnegie is a fan of this policy in order to let the United States develop its industry and compete with the British. In Australia and Canada, we see much the same thing as we see in the United States, but also in Latin America. In general, in countries that retain or gain political autonomy, protectionism is maintained until the eve of the First World War.
In the British Dominions and especially in Australia and Canada, this period was the implementation of industrialization policy through customs barriers. If we look at the discourse of industrialists in the United States, they talk about protectionism as a policy to promote industrial development. Carnegie is a fan of this policy in order to let the United States develop its industry and compete with the British. In Australia and Canada, we see much the same thing as we see in the United States, but also in Latin America. In general, in countries that retain or gain political autonomy, protectionism is maintained until the eve of the First World War.


Ferguson, an economic historian, notes that British imperialism was a driving force behind modernisation in the 19th century. According to his position, this was a good thing. However, everyone agrees that the British Empire is not alone in forcing its colonies to adopt a free trade policy.
Ferguson, an economic historian, notes that British imperialism was a driving force behind modernisation in the 19th century. According to his position, this was a good thing, however, everyone agrees that the British Empire is not alone in forcing its colonies to adopt a free trade policy.


== Return of protectionism in Europe: 1879 - 1913 ==
== Return of protectionism in Europe: 1879 - 1913 ==
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=== Policy dissemination ===
=== Policy dissemination ===
Moreover, there is no obligation to represent relations between States in a hierarchical way; there is an opportunity for learning and merging policies. There are also processes of infatuation. For certain policies, notably with regard to free trade and monetary policies, Bismarck looks at Britain and considers that its monetary policy explains its wealth.
Moreover, there is no obligation to represent relations between States in a hierarchical way, there is an opportunity for learning and merging policies. There are also processes of infatuation. For certain policies, notably with regard to free trade and monetary policies, Bismarck looks at Britain and considers that its monetary policy explains its wealth.


= Trends in international trade =  
= Trends in international trade =  
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