How did the end of the Reciprocity Treaty affect Nova Scotia’s economy?

The termination of the Reciprocity Treaty in 1866, combined with shifting continental and global trade patterns, significantly eroded Nova Scotia’s traditional economy.1

Prior to this, the treaty had facilitated a beneficial north-south flow of commerce, securing New England as a primary market and supply source for the province's forestry, fisheries, and shipbuilding industries. The subsequent loss of this trade agreement, alongside the later integration of Nova Scotia into the Canadian railway system, failed to provide the anticipated economic advantages. Instead, these changes increased the province's economic dependence on Quebec and Ontario, contributing to a period of economic instability marked by extensive out-migration to the United States and western Canada.1