Britain is regarded as the fountain of laissez-faire doctrine and the only country to have practised free trade. Britain is regarded as the only nation to have developed with little or no state intervention. However, this cannot be further from the truth since Britain was the first country to establish infant industry protection. This is where obstacles are placed upon foreign competition to ensure domestic companies develop with no competitors.

The 1721 reform of the mercantile law was summed up by Brisco, an economic historian in 1907:

‘manufactures had to be protected at home from foreign finished products; free exportation of finished articles had to be secured; and where possible, encouragement had to be given by bounty and allowance.’38 This meant import duties on raw materials were lowered, duties on foreign manufactured goods were significantly raised. Specifically, Britain banned the imports of superior goods from some of its colonies if they happened to threaten British industries.

The next big change came in 1846 with the repeal of the Corn Laws, which were import tariffs ostensibly designed to protect British farmers and landowners against competition from cheap foreign grain imports. But this was intended to halt the move to industrialization on the continent by enlarging the export market for British agriculture. Britain’s technological lead that enabled the shift to a free trade regime had been achieved behind high and long lasting tariff barriers. The overall liberalisation of the British economy was a highly controlled affair overseen by the state and not achieved through a laissez-faire approach.