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　　British repealed the Corn Laws and Navigations Acts, with had been economically beneficial to the colonies for generations, British began imposing taxes on the colonies at the same rate it applied to all other trading countries, a situation to which the colonies had never been accustomed.

　　From Americans were involved in a major civil war. British had traditional economic ties with the southern part of the United States that provided cotton to British markets. In the meantime, since the war was essentially between the North and South, the North resented Britishs connection with the South. In addition, during the last year of the American Civil War, the American Government of the dominant and ultimately victorious North, refused to renew a ten-year free trade agreement with United Canada, the large British colony in the central part of British North America. These arbitrary events brought concern and even fear to these colonies. With the loss of traditional trading arrangements and the end of the civil war, the North being victorious, the colonists feared that the Americans might turn on the British colonies in retaliation for Britishs moral support for the South.

　　The need for new markets, and a solid defense system from potential invasion by the United States, brought an acute awareness to these diverse colonies that they should look to each other for resolutions to these problems. They felt uneasy trying to cope against these adversities on their own. Sir John A. Macdonald from United Canada, the dominant personality at this time, also saw the acceleration of American settlers moving north and spreading throughout the flat prairie lands to the west. This would potentially put a wall between the colonies in the East and British Columbia on the west coast of North America. MacDonald felt that the situation was urgent.

　　In the summer of , the maritime colonies of Nova Scotia, Prince Edward Island, and New foundland scheduled a meeting to discuss the possibility of a customs union or free trade area to compensate for the latest setbacks in the trade relations with Britain and the United States. Mcdonald managed to get permission for some delegates from United Canada to attend as observers. For a number of years, United Canada was experiencing problems of political deadlock. Canada West was predominantly English-speaking and Canada East was predominantly French-speaking. A central government, set up in 1841, required a majority from both Canada West and Canada East for all legislation to become law. It was very difficulty to pass significant legislation when two opposing views were constantly being debated and legislative bills were constantly being defeated. The Canadian saw a new, wider union, a potential new national institution or central government, as a possible solution for breaking out of this constant political disorder.