Calico and Britain’s Protectionist Policy

Faced with imports that crushed a local economy, Britain’s Parliament takes steps to preserve their domestic market. Some believe their action ushered in the Industrial Revolution.

The Fabric of Our Lives

The early 18th century saw a transformative period in the textile industry. Calico, a cotton fabric adorned with intricate prints, gained popularity  in Great Britain. The Asian import, which once started as a side cart to desired spices, soon overtook the spice trade. Cotton was superior to linen or wool. There’s a reason it’s dubbed the fabric of our lives. Demand skyrocketed. 

The East India Company (EIC), who had introduced Britain to calico, embraced the demand. They began expanding its factories across Asia. Soon they were importing calico in bulk. For local textiles workers in Britain, demand in their domestic linen and wool fabrics plummeted. 

The magnitude of impact locally was astounding. Local weavers, spinners, dyers, shepherds, and farmers suffered. Tensions grew. Those caught wearing imported calico cloth were assaulted on the streets. Local offices of the East India Company were stormed by mobs. Seemingly overnight, calico became a national political issue.

Political Action Required

Parliament noticed the declining domestic textile economy. They took notice of the staggering growth of imported textiles from China and India. Textile importation was hollowing out local textile businesses. To try and slow the calico invasion, they imposed tariffs. When initial tariffs didn’t work, they raised them. By 1707 there was a 50% tariff on Indian goods.

The domestic market continued to atrophy. Financial hardship continued to ravage locals. Parliament was dissatisfied with the first steps taken to curb calico. In 1721, Parliament passed a stricter version of the Calico Act. Instead of tariffs, they outright prohibited the sale of most cottons - imported or domestic.  

Designed to safeguard domestic industries, the enhanced Calico Act was a robust framework designed to protect local manufacturers. Transcontinental calico commerce ground to a halt. Financial turbulence struck those heavily invested in the calico trade. Smugglers and a black market erupted. Despite Parliament’s action, the demand for calico had not subsided. Underground trade erupted. With the ban, consumers grew critical of rising costs.

A Clever Provision

A clever component of the Calico Act was an exemption of 2,000 bales of raw cotton to be imported annually. These bales were to become the basis of a new indigenous industry. British manufacturers were motivated to create an alternative to foreign calico.

Innovation took hold. Cotton mills sprouted up in Britain. Advances in printing and dyeing were discovered. By the 1770s, Parliament amended the annual limit and increased it to 7,000 bales annually. Once caught off guard by the EIC, local manufacturers now pressured Parliament to lift the cap altogether. They wanted to compete with the EIC and take the global market.

Going Global

In 1774, Parliament repealed the Calico Acts. Investment poured into local mill-based cotton spinning and production. The demand for raw cotton would double within two years. It would double again every decade through the 1840s. British cotton production won out. Not only were they able to out-produce the EIC’s factory system, they created a superior product. 

Global historians credit the Calico Acts as a precursor to the Industrial Revolution. Many argue that Britain’s protectionist policy helped spur the local cotton industry. There are some however that doubt that presumption. They remain unsure that protection allowed British goods to become competitive. 

History for the Hurried:

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December 21, 1972: East and West Germany established diplomatic ties, ending nearly two decades of Cold War hostility and paving the way for international recognition of East Germany.