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Sir Henry Parkes was the statesman who advocated for Federation of the colonies in Australia, and his main arguments centred around the advantages there would be to trade.

Towns which were a long way from the state capital, and closer to another state's capital (such as Tenterfield, where he made his famous speech known as the Tenterfield Oration) were disadvantaged by the steep tariffs imposed on the transportation of goods across the border. For example, Tenterfield farmers and producers found it was more expedient to send their goods over the border to Queensland, where the closer trade centre of Brisbane was located, rather than to Sydney. Parkes's main argument for Federation was the fact that it would enable free trade across the borders.

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