Anglo-Dutch Wars
- Lead Up:
- In the 16th century, England, under Queen Elizabeth I, supported the Dutch Revolt against Spain, and English privateers attacked Spanish interests.
- After Elizabeth's death, Anglo-Spanish relations improved, reducing English privateering, and the English Royal Navy was neglected due to underfunding.
- King Charles I secretly made agreements with Spain against Dutch sea power and rebuilt the Royal Navy, but his support for Spain was limited due to fear of the Dutch Stadtholder.
- In the New World, Dutch and English colonies contested territory.
- The English Civil War weakened the English navy, but Oliver Cromwell rebuilt it and sought to challenge Dutch mercantile dominance.
- Tensions grew as the English viewed the Dutch as ungrateful for past aid, and there were conflicts over fishing, trade in the East Indies, and colonial trade.
- Cromwell proposed an alliance with the Dutch to conquer Spanish America, which the Dutch rejected.
- England passed the Navigation Acts to protect its trade, and the English captured Dutch merchant ships, which led to increased tensions.
- What Happened:
- First Anglo-Dutch War (1652-1654): The war began after a naval incident where the Dutch refused to lower their colors to the English. The English won the first major battle, but the Dutch had subsequent victories. The English then adopted new naval tactics and drove the Dutch out of the English Channel and North Sea. The war ended with the Treaty of Westminster, though commercial rivalry remained.
- Second Anglo-Dutch War (1665-1667): King Charles II aimed to make his nephew, William III of Orange, the Dutch Stadtholder and promoted mercantilist policies against the Dutch. England had some victories, including taking New Netherland, but the Dutch recovered and won some victories as well. The Dutch raid on the Medway was a major blow to the English and led to the Treaty of Breda.
- Third Anglo-Dutch War (1672-1674): This war is mentioned as part of the series of conflicts.
- Fourth Anglo-Dutch War (1780-1784): The Dutch supported American rebels, leading Britain to declare war. The Dutch navy was weak, and Britain won, exposing the Dutch Republic's weaknesses.
- Consequences:
- The First War ended with the Treaty of Westminster but did not resolve commercial rivalry and included a secret annex against William III becoming Stadtholder.
- The Second War saw Dutch trade recover and the English war effort suffer with the Great Plague and Great Fire of London.
- The raid on the Medway led to widespread anger in England and the war ended with a peace treaty signed at Breda.
- After the Third War, William of Orange became the King of England, ending the Anglo-Dutch conflicts.
- The Fourth War exposed the weak political and economic foundations of the Dutch Republic.
- England surpassed the Dutch in military and economic power.
- Britain captured Dutch colonies, with some returned in 1814, but others were kept by Britain.
Banana Wars
- Lead Up:
- The Spanish-American War led to the US gaining control of Cuba, Puerto Rico, Guam, and the Philippines.
- The US sought to maintain its influence, secure the Panama Canal, and protect its economic interests in the region.
- US companies like the United Fruit Company (UFC) and Standard Fruit Company had significant financial stakes in the production of bananas and other commodities.
- The US justified intervention to protect its economic interests and the Panama Canal, as well as to protect American companies.
- What Happened:
- The US conducted military interventions in Cuba, Panama, Honduras, Nicaragua, Mexico, Haiti, and the Dominican Republic.
- The US military, primarily the Marine Corps, intervened in these countries using military occupation, police action, and other forms of intervention.
- The US intervened in Nicaragua to prevent leaders from disrupting US interests.
- In Mexico, the US conducted the Border War to control the flow of immigrants, counter rebel raids, and stop German munitions supplies.
- The US occupied Veracruz in 1914 as a show of armed influence.
- The US occupied Haiti from 1915 to 1934.
- Consequences:
- The US gained control of the Panama Canal Zone and established a permanent lease on the Guantanamo Bay Naval Base.
- The interventions led to the creation of new Haitian constitution that removed a ban on land ownership by non-Haitians.
- The United Fruit Company and other US companies gained significant influence over local governments.
- The US asserted control over the region to ensure its interests came first.
- The US military developed the Small Wars Manual based on their experiences.
- The term "banana republic" was coined to describe Honduras due to American influence.
- Smedley Butler, a US Marine, later denounced his role in the Banana Wars, describing himself as a "muscle man for Big Business".
- The conflicts ended when the US withdrew from Haiti in 1934 under President Franklin D. Roosevelt.
Canada-United States Softwood Lumber Dispute
- Lead Up:
- The dispute began in 1982, with the US claiming that the Canadian lumber industry was unfairly subsidized by provincial governments due to the way stumpage fees are set.
- The US lumber industry lobbied for countervailing duties to offset the perceived subsidies.
- The Canadian government and lumber industry disputed this, arguing that the stumpage system was not specific to any single industry.
- What Happened:
- Lumber I (1982): The US Department of Commerce (DoC) found that Canada's stumpage system was not specific to any single industry and thus not countervailable. The United States International Trade Commission (USITC), however, believed that the Canadian imports hindered US producers.
- Lumber II: This included a Memorandum of Understanding, and Canada was taxed on lumber exports to the US.
- Lumber III (1991): Canada withdrew from the Memorandum of Understanding and the US DoC imposed countervailing duties. A binational panel found that the DoC's determination was not supported by evidence and the US Congress amended the law.
- Lumber IV: The US imposed duties that led to job losses in Canada. The World Trade Organization (WTO) ruled in Canada's favor, and the US was ordered to recalculate duties.
- Softwood Lumber Agreement (SLA) (2006): The US and Canada reached a tentative settlement, with the US lifting countervailing and anti-dumping duties if lumber prices stayed above a certain range. Canada agreed to enforce regulations and taxes on exports.
- The Softwood Lumber Agreement expired in 2015, leading to new disputes.
- In 2017, the US imposed new anti-subsidy tariffs averaging 20 percent on Canadian softwood lumber imports.
- The dispute went through various challenges under NAFTA and with the WTO.
- In 2024, the US raised tariff rates on imports of Canadian softwood lumber products.
- Consequences:
- The dispute led to numerous legal challenges, trade restrictions, and economic impacts on both countries.
- The US remained heavily dependent on Canadian lumber, as domestic supply did not meet demand.
- The SLA established a dispute settlement mechanism, but disputes continued after its expiration.
- Canadian lumber companies increased their ownership of US sawmills, driven by trade conflicts and timber availability.
Chicken Tax
- Lead Up:
- In the early 1960s, the US exported inexpensive chicken to Europe, which significantly affected European chicken consumption, dropping prices.
- European countries, especially France and West Germany, placed tariffs on US chicken imports.
- The US accused Europe of unfairly restricting imports of American poultry.
- Diplomacy failed to resolve the issue.
- What Happened:
- In 1963, President Lyndon B. Johnson imposed a 25% tariff on potato starch, dextrin, brandy, and light trucks imported from Europe.
- The tariff on light trucks was primarily aimed at West German-built Volkswagen Type 2s.
- Consequences:
- The tariffs on potato starch, dextrin, and brandy were lifted.
- The 25% tariff on light trucks remained in place.
- The Chicken Tax significantly curtailed imports of light trucks into the US, particularly affecting Volkswagen.
- Japanese automakers also pulled their models from the North American market because of the tariff.
- The tax protected Detroit automakers, reducing pressure to introduce vehicles that polluted less and offered increased fuel economy.
- Various companies have found ways to circumvent the Chicken Tax by importing chassis cabs or disassembling vehicles.
German-Polish Customs War
- Lead Up:
- Poland gained independence in 1918 after 123 years of foreign dominance. However, the new nation had a struggling economy due to multiple wars and years of division.
- Germany had revanchist claims to Polish territories, which included a significant minority of ethnic Germans, many of whom had to leave by treaty after the end of World War I.
- Germany sought to destabilize Poland's economy and gain political concessions.
- Gustav Stresemann aimed to delay the stabilization of the Polish economy until Germany could secure border changes in the East.
- What Happened:
- Germany initiated a customs war against Poland by imposing high tariffs and restricting Polish imports, beginning in 1925.
- The Polish zloty lost value, and industrial output declined, especially in Upper Silesia.
- Germany blocked Poland's attempts to secure a British loan.
- Consequences:
- The Polish government collapsed due to the economic strain caused by the German policies.
- The economic strain of the trade war led to increased poverty, unemployment, and labor strikes.
- The customs war led to a radicalization of Polish politics and the May Coup d'État of 1926.
- Poland found new trade partners, making their economy less dependent on Germany.
Opium Wars
- Lead Up:
- Opium was used in China as a medicine, but recreational smoking increased demand and addiction.
- Chinese emperors issued edicts to make opium illegal, but imports grew.
- The British East India Company and other merchants smuggled opium into China for profit.
- In 1834, the EIC's monopoly on British trade with China ceased, and the opium trade increased.
- The Daoguang Emperor charged Lin Zexu with ending the trade, and Lin seized all opium in Canton.
- A small skirmish occurred between British and Chinese warships in 1839.
- What Happened:
- First Opium War (1839-1842): The British government sent a military expedition to force the Chinese to pay reparations and allow the opium trade. The British used superior naval power to defeat the Chinese.
- Second Opium War (1856-1860): Britain and France sought greater concessions from China, including the legalization of the opium trade, as well as expanding the transportation of coolies, opening all of China to foreign traders and missionaries, and exempting foreign imports from duties. After initial Chinese resistance, the British and French continued to attack the Chinese.
- Consequences:
- First Opium War: The Treaty of Nanking ceded Hong Kong to Britain, and established five cities as treaty ports for Western traders. China was also forced to pay reparations. Britain was given most favored nation status. France secured similar concessions in the Treaty of Whampoa.
- Second Opium War: The Treaty of Tientsin in 1858 legalized the opium trade, opened more ports to European commerce, and granted foreign traders and missionaries rights to travel within China. After the Chinese resisted, the Convention of Peking in 1860 confirmed the terms of the Treaty of Tientsin, which resulted in the Chinese losing control of many territories.
- Both conflicts weakened the Chinese government's authority and forced China to open treaty ports to Western merchants.
- The conflicts contributed to the "Century of Humiliation" for China.
- Some of the looted bronzes from the Old Summer Palace have been returned to China.
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Episode 12