Reciprocity
a policy under which there exist two sets of tariff duties; one to be put in force under ordinary circumstances; the other a much lower one to be established in case another country reduces its tariff schedules to a corresponding scale. In the case of the United States reciprocity has been greatly talked of as existing between that nation and Canada. In 1854 a reciprocity treaty was negotiated between the two countries which provided for mutual free trade between the United States and Canada. While it was popular at first in stimulating trade the business depression in the United States in 1857 greatly influenced that nation to repeal the act in 1865. The Republican party a few years later, in order to please the agricultural and exporting classes who were in general opposed to the high tariff, championed the principle of reciprocity. In 1875 a reciprocity treaty was negotiated and signed between Hawaii and the United States, but it was not until the McKinley Administration that such treaties were made with any important nations. During that administration reciprocity was established with France, Portugal, Germany, and Italy. Treaties were negotiated with other countries which the Senate refused to ratify.
President McKinley in his last public address, the Buffalo Exposition speech, strongly advocated reciprocity. In 1903 a reciprocity treaty with Cuba was negotiated and ratified by the Senate.
In 1911 President Taft negotiated a reciprocity treaty with Canada and in spite of the opposition of many of the Western members of his party he succeeded in securing its passage by Condo in low tariff duties, have never espoused reciprocity, holding that the reciprocal action of another country is immaterial.