Newfoundland; Economic, Diplomatic, and Strategic Studies

By R. A. MacKay | Go to book overview

VI
EXTERNAL TRADE1

NEWFOUNDLAND developed as an economic entity as a result of the international division of labour about the Atlantic basin. Few countries are today more dependent on foreign trade. Its people can neither feed themselves, nor clothe themselves nor run their industries without imports, and imports can only be paid for by exports. From 90 to 95 per cent. of imports have ordinarily come from Canada, the United States and the United Kingdom. Exports, on the other hand, have gone to a wide variety of markets around the Atlantic basin. The war has profoundly disturbed the normal channels of trade for Newfoundland as for other countries, but its trading position can be better appreciated from an examination of the pattern of trade that prevailed before the war rather than from an examination of the abnormal conditions of wartime.


IMPORTS

In the interval between 1919 and 1939, as has been intimated, Newfoundland drew her supplies mainly from three countries, Canada, the United States and the United Kingdom. In the five years ending 1940 over 92 per cent. of imports came from these three sources. Canada was the largest source of supply, providing in normal times about 40 per cent. of the total, though in the five years ending 1940 Canada's share had dropped to about 37 per cent. At the beginning of this century the United Kingdom stood second, but was surpassed by the United States shortly thereafter.

____________________
1
See Statistical Appendix, Tables 3 to 13. See also Bates S., Competition of Canadian and Newfoundland Fisheries. MacKenzie W. C., Statement of the Trade Position of Newfoundland. (Salt Fish Board, Halifax, 1941.)

-135-

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