ON THIS DAY IN HISTORY ... JAPAN TAKES THE FIRST STEP TOWARDS CATCHING "FREE TRADE" FEVER

Commodore Perry arrives in Tokyo Bay, July 8, 1853.

On this day in history (July 8, 1853) Commodore Matthew C. Perry sailed into Tokyo Bay with the U.S. Navy and a letter from President Filmore politely demanding trade and safe harbour for American ships. Commodore Perry was turned away by the Japanese, and effectively told not to come back.

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In my International Political Economy course I like to discuss how free markets don't "just happen" and are really the product of state initiated activities and state-imposed order. For example, after landing in Tokyo Bay on July 8, 1853 Commodore Matthew Perry was told to go away by the Japanese. His desire to negotiate treaties that would open trade and diplomatic channels with Japan were rebuffed.

Given the spirit of the day, Commodore Perry did what every "free trader" with military means did at the time. He left to give the Japanese time to think. He returned a year later with more fire power and ships, determined to get the trade treaty and safe passage the U.S. wanted.

Commodore Perry returns to Yokohama, Japan with more ships in 1854.

On March 31, 1854 Japan signed the Treaty of Kanagawa, which opened Japanese ports to American trade. It also permitted the U.S. to establish an American consulate in Japan. And just like that, after two centuries of blocking out the west from their society and culture, the spirit of "free trade" was born in Japan.

- Mark