In the case of the other countries
even this formal recognition of the old colonial status was
abandoned. The agreement with Italy was negotiated in Canada
between "the Royal Consul of Italy for Canada, representing the
government of the Kingdom of Italy, and the Minister of Finance
of Canada, representing His Excellency the Governor General
acting in conjunction with the King's Privy Council for Canada."
The conclusions in these later instances were embodied in
conventions, rather than formal treaties.
With one country, however, tariff war reigned instead of treaty
peace. In 1899 Germany subjected Canadian exports to her general
or maximum tariff, because the Dominion refused to grant her the
preferential rates reserved for members of the British Empire
group of countries. After four years' deliberation Canada
eventually retaliated by imposing on German goods a special
surtax of thirty-three and one-third per cent. The trade of both
countries suffered, but Germany's, being more specialized, much
the more severely. After seven years' strife, Germany took the
initiative in proposing a truce. In 1910 Canada agreed to admit
German goods at the rates of the general--not the
intermediate--tariff, while Germany in return waived her protest
against the British preference and granted minimum rates on the
most important Canadian exports.
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