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Europe, intercourse, trade and navigation were carried on, at first tacitly by usage derived from Roman times, or under verbal permission given to merchants by the ruler to whose See also:

court they resorted. After-wards, See also:

SECURITY (Lat. securus, free from care, safe)

security in these transactions was afforded by means of formal documents, such as royal letters, charters, laws and other See also:

INSTRUMENTS

instruments possessing the force of See also:

government See also:

MEASURES

measures. Instances affecting See also:

ENGLISH

English commercial relations are the See also:

LETTER (through Fr. lettre from Lat. littera or litera, letter of the alphabet; the origin of the Latin word is obscure; it has probably no connexion with the root of linere, to smear, i.e. with wax, for an inscription with a stilus)

letter of See also:

Charlemagne in 796, the See also:

Brabant See also:

CHARTER (Lat. charta, carta, from Gr. Xap-rns, originally for papyrus, material for writing, thence transferred to paper and from this material to the document, in O. Eng. boc, book)

Charter of 1305, and the Russian ukase of 1569.

See also:

Cromwell continued the commercial treaty policy partly in See also:

order to obtain a formal recognition of the See also:

COMMONWEALTH

commonwealth from foreign See also:

POWERS, HIRAM (1805-1873)

powers. His treaty of 1654 with Sweden contains the first reciprocal " most favoured nation clause ":—Article IV. provides that the See also:

PEOPLE

people, subjects and inhabitants of either confederate " shall have and possess in the countries, lands, dominions and kingdoms of the other as full and ample privileges, and as many exemptions, immunities and liberties, as any foreigner doth or shall possess in the dominions and kingdoms of the said confederate." The government of the Restoration replaced and enlarged the See also:

PROTECTORATE

Protectorate arrangements by fresh agreements. The general policy of the commonwealth was maintained, with further provisions on behalf of colonial trade. In the new treaty of 1661 with Sweden the privileges secured were those which " any foreigner whatsoever doth or shall enjoy in the said dominions and kingdoms on both sides." In contemporary treaties France obtained from See also:

Spain (1659) that See also:

French subjects should enjoy the same liberties as had been granted to the English; and England obtained from See also:

Denmark (1661) that the English should not pay more or greater customs than the people of the See also:

UNITED

United Provinces and other foreigners, the Swedes only excepted. The colonial and navigation policy of the 17th century, and the proceedings of See also:

Louis XIV., provoked animosities and retaliatory tariffs. During the War of the See also:

SPANISH

Spanish See also:

SUCCESSION (Lat. successio, from succedere, to follow after)

Succession the See also:

METHUEN, BARONY OF

Methuen Treaty of 1703 was concluded. Portugal removed prohibitions against the importation of See also:

BRITISH

British woollens; See also:

GREAT

Great See also:

BRITAIN (Gr. Hperavuml vi7vot, Bperravia; Lat. Britannia, rarely Britannia)

Britain engaged that Portuguese wines should pay one-third less See also:

DUTY (from " due," that which is owing, O. Fr. deu, dil, past participle of devoir; Lat. debere, debitum; cf. " debt ")

duty than the See also:

RATE

rate levied on French wines. At the peace of Utrecht in 1713 political and commercial treaties were concluded. England agreed to remove prohibitions on the importation of French goods, and to See also:

grant most favoured nation treatment in relation to goods and merchandise of the like nature from any other country in Europe; the French general See also:

TARIFF (adapted in English from the French; the word comes through the Spanish tarifa, a list or schedule of prices, from the Arabic, ta'rifa, information, an inventory, 'arf, know-ledge)

tariff of the 18th of See also:

SEPTEMBER (Lat. septem, seven)

September 1664, was to be again put in force for English trade. The English See also:

PROVISION (Lat. provisio)

provision was at variance with the Methuen Treaty. A violent controversy arose as to the relative importance in 1713 of Anglo-Portuguese or Anglo-French trade. In the end the See also:

House of See also:

COMMONS

Commons, by a See also:

MAJORITY (Fr. majorite; Med. Lat. majoritas; Lat. major, greater)

majority of 9, rejected the See also:

BILL

bill to give effect to the commercial treaty of 1713; and trade with France remained on an unsatisfactory footing until 1786.

The other commercial treaties of Utrecht were very See also:

COMPLETE

complete in their provisions, equal to those of the See also:

PRESENT

present See also:

time; and contained most favoured nation articles—England secured in 1715 reduction of duties on woollens imported into the See also:

AUSTRIAN

Austrian Netherlands; and trading privileges in Spanish See also:

AMERICA

America. Moderate import duties for woollens were obtained in See also:

Russia by the commercial treaty of 1766. In the meanwhile the See also:

Bourbon See also:

FAMILY

family compact of the 15th of See also:

AUGUST (originally Sextilis)

August 1761 assured See also:

NATIONAL

national treatment for the subjects of France, Spain and the Two Sicilies, and for their trade in the European territories of the other two states; and most favoured nation treatment as regards any See also:

SPECIAL

special terms granted to any foreign country. The first commercial treaties concluded by the United States with European countries contained most favoured nation clauses: this policy has been continued by the United States, but the wording of the clause has often varied. In 1786 France began to effect tariff reform by means of commercial treaties. The first was with Great Britain, and it terminated the long-continued tariff warfare. But the See also:

WARS

wars of the French Revolution swept away these reforms, and brought about a renewal of hostile tariffs. Prohibitions and differentialduties were renewed, and prevailed on the See also:

CONTINENT (from Lat. continere, "to hold together "; hence " connected," " continuous ")

continent until the See also:

SIXTH

sixth See also:

DECADE (from Gr. Oka, ten)

decade of the loth century. In r86o a government existed in France sufficiently strong and liberal to revert to the policy of 1786. The bases of the Anglo-French treaty of 186o, beyond its most favoured nation provisions, were in France a general transition from See also:

PROHIBITION (Lat. prohibere, to prevent)

prohibition or high customs duties to a moderate tariff; in the United See also:

KINGDOM

Kingdom See also:

ABANDONMENT (Fr. abandonnement, from abandonner, to abandon, relinquish; abandonner was originally equivalent to mettred banddn, to leave to the jurisdiction, i.e. of another, bandon being from Low Latin bandum, bannum, order, decree, " ban ")

abandonment of all protective imposts, and reduction of duties maintained for fiscal purposes to the lowest rates compatible with these exigencies. Other European countries were obliged to obtain for their trade the benefit of the conventional tariff thus established in France, as an alternative to the high rates inscribed in the general tariff. A See also:

SERIES (a Latin word from serere, to join)

series of commercial treaties was accordingly concluded by different European states between 1861 and 1866, which effected further reductions of customs duties in the several countries that came within this treaty system.

In 1871 the Republican government sought to terminate the treaties of the empire. The British negotiators nevertheless obtained the relinquishment of the See also:

ATTEMPT (Lat. adtemptare, attentare, to try)

attempt to See also:

levy protective duties under the See also:

guise of See also:

COMPENSATION (from Lat. compensare, to weigh one thing against another)

compensation for imposts on raw materials; the duration of the treaty of 186o was prolonged; and stipulations better worded than those before in force were agreed to for See also:

SHIPPING

shipping and most favoured nation treatment. In 1882, however, France terminated her existing European tariff treaties. See also:

Belgium and some other countries concluded fresh treaties, less liberal than those of the system of 186o, yet much better than anterior arrangements. Great Britain did not formally accept these higher duties; the treaty of the 28th of See also:

FEBRUARY

February 1882, with France, which secured most favoured nation treatment in other matters, provided that customs duties should be " henceforth regulated by the See also:

INTERNAL

internal legislation of each of the two states." In 1892 France also See also:

fell out of international tariff arrangements; and adopted the system of See also:

double columns of customs duties—one, of See also:

LOWER

lower rates, to be applied to the goods of all nations receiving most favoured treatment; and the other, of higher rates, for countries not on this footing. See also:

Germany then took up the treaty tariff policy; and between 1891 and 1894 concluded several commercial treaties. International trade in Europe in 1909 was regulated by a series of tariffs which came into operation, mainly on the initiative of Germany in r906. See also:

Austria-See also:

Hungary, Belgium, See also:

Bulgaria, Germany, See also:

Italy, See also:

Rumania, Russia, See also:

SERVIA

Servia and See also:

SWITZERLAND

Switzerland, were parties to them. Their See also:

OBJECT

object and effect was protectionist. The British policy then became one of obtaining modifications to remedy disadvantages to British trade, as was done in the See also:

case of Bulgaria and Rumania. An important series of commercial arrangements had been concluded between 1884 and 1900 respecting the territories and See also:

SPHERES, MUSIC OF THE

spheres of See also:

INTEREST

interest of European powers in western, central and eastern See also:

Africa. In these regions exclusive privileges were not claimed; most favoured nation treatment was recognized, and there was a disposition to extend national treatment to all Europeans and their trade.

The Turkish Capitulations (q.v.) are grants made by successive sultans to See also:

Christian nations, conferring rights and privileges in favour of their subjects See also:

RESIDENT

resident or trading in the See also:

OTTOMAN

Ottoman dominions, following the policy towards European states of the Eastern empire. In the first instance capitulations were granted separately to each Christian state, beginning with the Genoese in 1453, which entered into pacific relations with See also:

TURKEY

Turkey. After-wards new capitulations were obtained which summed up in one document earlier concessions, and added to them in general terms whatever had been conceded to one or more other states; a stipulation which became a most favoured nation article. The English capitulations date from 1569, and then secured the same treatment as the Venetians, French, Poles and the subjects of the See also:

EMPEROR (Fr. empereur, from the Lat. imperator)

emperor of Germany; they were revised in 1675, and as then settled were confirmed by treaties of subsequent date " now and for ever." Capitulations signify that which is arranged under distinct " headings "; the Turkish phrase is " ahid nameh," whereas a treaty is " mouahede "—the latter does, and the former does not, signify a reciprocal engagement. Thus, although the Turkish capitulations are not in themselves treaties, yet by subsequent See also:

CONFIRMATION (Lat. confirmatio, from confirmare, to establish, make firm)

confirmation they have acquired the force of commercial treaties of perpetual duration as regards substance and principles, while details, such as rates of customs duties, may, by mutual consent, be varied from time to time. The most favoured nation article already referred to concedes to the state in the treaty with which it is concluded whatever advantages in the matters comprised within its stipulations have been allowed to any foreign or third state. It does not in itself directly confer any particular rights, but sums up the whole of the rights in the matters therein mentioned which have been or may be granted to foreign countries. The value of the privileges under this article accordingly varies with the conditions as to these rights in each state which concedes this treatment. The article is drafted in different form: (1) That contracting states A. and B. agree to extend to each other whatever rights and privileges they concede to countries C. and D., or to C. and D. and any other country. The object in this instance is to ensure specifically to B. and A. whatever advantages C. and D. may possess. A See also:

RECENT

recent instance is Article XI. of the treaty of May to, 1871, between France and Germany, which binds them respectively to extend to each other whatever advantages they grant to Austria, Belgium, Great Britain, the Netherlands, Russia and Switzerland. (2) The present general formula: A. and B, agree to extend to each other whatever advantages they concede to any third country ; and engage that no other or higher duties shall be levied on the importation into A. and B. respectively of goods the produce or manufacture of B. and A. than are levied on the like goods the produce or manufacture of any third country the most favoured in this respect.

There is a similar clause in regard to exportation. (3) The conditional or See also:

RECIPROCITY (Lat. reciprocus, returning back the same way, alternating, probably from re back and pro forward)

reciprocity formula, often used in the 18th and in the early part of the 19th century, namely, that whenever A. and B. make special concessions in return for corresponding concessions, B. and A. respectively are either excluded from participation therein, or must make some additional See also:

EQUIVALENT

equivalent See also:

con-cession in order to participate in those advantages. It may further be observed that the word " like " relates to the goods themselves, to their material or quality, not to conditions of manufacture, mode of See also:

CONVEYANCE

conveyance or anything beyond the fact of their precise description; small local facilities allowed to See also:

TRAFFIC

traffic between conterminous See also:

LAND

land districts are not at variance with this article. A recent complete and concise English formula is that of Article 2 of the treaty of commerce and navigation of the 31st of See also:

OCTOBER

October 1905, with Rumania. " The contracting parties agree that, in all matters See also:

RELATING

relating to commerce, navigation and See also:

INDUSTRY (Lat. industria, from indu-, a form of the pre, position in, and either stare, to stand, or struere, to pile up)

industry, any See also:

PRIVILEGE

privilege, favour or See also:

IMMUNITY (from Lat. immunis, not subject to a munus or public service)

immunity which either contracting party has actually granted, or may hereafter grant, to the subjects or citizens of any other foreign state, shall be extended immediately and unconditionally to the subjects of the other; it being their intention that the commerce, navigation and industry of each country shall be placed, in all respects, on the footing of the most favoured nation." Colonies.—The application of commercial treaties to colonies depends upon the wording of each treaty. The earlier colonial policy of European states was to subordinate colonial interests to those of the See also:

MOTHER

mother country, to reserve colonial trade for the mother country, and to abstain from engagements contrary to these general rules. France, Portugal and Spain have adhered in principle to this policy. Germany and Holland have been more liberal. The self-government enjoyed by the larger British colonies has led since 1886 to the insertion of an article in British commercial and other treaties whereby the assent of each of these colonies, and likewise of See also:

India, is reserved before they apply to each of these possessions. And further, the fact that certain other British colonies are now within the See also:

SPHERE (Gr. vclsa?pa, a ball or globe)

sphere of commercial inter-course controlled by the United States, has since 1891 induced the British government to enter into special agreements on behalf of colonies for whose products the United States is now the See also:

CHIEF (from Fr. chef, head, Lat. caput)

chief See also:

MARKET (Lat. mercatus, trade or place of trade)

market. As regards the most favoured nation article, it is to be remembered that the mother country and colonies are not distinct—not foreign or third—countries with respect to each other. The most favoured nation article, therefore, does not preclude special arrangements between the mother country and colonies, nor between colonies.

Termination.—Commercial treaties are usually concluded for a See also:

TERM

term of years, and either See also:

LAPSE (Lat. lapses, a slip or departure)

lapse at the end of this period, or are terminable then, or subsequently, if either state gives the required See also:

NOTICE

notice. When a portion of a country establishes its See also:

independence, for example the several See also:

AMERICAN

American republics, according to present usage foreign trade is placed on a See also:

UNIFORM

uniform most favoured nationfooting, and fresh treaties are entered into to regulate the commercial relations of the new communities. In the case of former Turkish provinces, the capitulations remain in force in principle until they are replaced by new engagements. If one state is absorbed into another, for instance See also:

TEXAS

Texas into the United States, or when territory passes by See also:

CONQUEST

conquest, for instance See also:

ALSACE (Ger. Elsass)

Alsace to Germany, the commercial treaties of the new supreme government take effect. In administered territories, as See also:

Cyprus and formerly Bosnia, and in protected territories, it depends on the policy of the administering See also:

POWER [WILLIAM GRATTAN] TYRONE (1797-1841)

power how far the previous fiscal system shall remain in force. When the See also:

SEPARATE

separate See also:

ITALIAN

Italian states were united into the kingdom of Italy in 1861, the commercial engagements of See also:

SARDINIA (Gr. 'IXs'o"uva, from a fancied resemblance to a footprint in its shape, Ital. Sardegna)

Sardinia superseded those of the other states, but fresh treaties were concluded by the new kingdom to See also:

PLACE (through Fr. from Lat. platea, street; Gr. IrAar6s, wide)

place inter-national relations on a See also:

REGULAR

regular footing. When the See also:

German empire was established under the See also:

king of See also:

Prussia in 1871, the commercial engagements of any state which were at variance with a See also:

ZOLLVEREIN (Ger. Zoll, toll, customs, and Verein, union)

Zollverein treaty were superseded by that treaty. See also:

SCOPE (through Ital. scopo, aim, purpose, intent, from Gr. o'KOaos, mark to shoot at, aim, o ic07reiv, to see, whence the termination in telescope, microscope, &c.)

Scope.—The scope of commercial treaties is well expressed by See also:

CALVO, CARLOS (1824-1906)

Calvo in his See also:

WORK

work on international law. They provide for the importation, exportation, transit, transhipment and bonding of merchandise; customs tariffs; navigation charges; See also:

QUARANTINE (Fr. quarantaine, a period of forty days 1)

quarantine; the See also:

ADMISSION

admission of vessels to roadsteads, ports and docks; See also:

COASTING

coasting trade; the admission of consuls and their rights; See also:

FISHERIES

fisheries; they determine the local position of the subjects of each state in the other country in regard to See also:

RESIDENCE (Latin residere, to remain behind, to dwell, reside)

residence, See also:

PROPERTY

property, See also:

PAYMENT (Fr. paiement, from payer, to pay; Lat. pacare, to appease, pax, peace)

payment of taxes or exemptions, and military service; See also:

NATIONALITY

nationality; and a See also:

mast favoured nation clause. They usually contain a termination, and sometimes a colonial article. Some of the matters enumerated by Calvo—consular privileges, fisheries and nationality—are now frequently dealt with by separate conventions. Contraband and neutral trade are not included as frequently as they were in the 18th century.

The preceding statement shows that commercial treaties afford to foreigners, personally, legal rights, and See also:

RELIEF

relief from technical disabilities: they afford security to trade and navigation, and regulate other matters comprised in their provisions. In Europe the general principles established by the series of treaties 1860-1866 hold See also:

GOOD, JOHN MASON (1764-1827)

good, namely, the substitution of uniform rates of customs duties for prohibitions or See also:

DIFFERENTIAL

differential rates. The disadvantages urged are that these treaties involve government interference and bargaining, whereas each state should act independently as its interests require, that they are opposed to See also:

FREE

free trade, and restrict the fiscal freedom of the legislature. It may be observed that these objections imply some confusion of ideas. All contracts may be designated bargains, and some of the details of commercial treaties in Calvo's enumeration enter directly into the functions of government; moreover, countries cannot remain isolated. If two countries agree by simultaneous See also:

ACTION

action to adopt fixed rates of duty, this agreement is favourable to commerce, and it is not apparent how it is contrary, even to free trade principles. Moreover, security in business transactions, a very important See also:

CONSIDERATION (from Lat. considerare, to look at closely, examine, generally taken to be from con-, and the base seen in sidus, sideris, a star, the word being supposed to be originally an astrological or astronomical term)

consideration, is provided. Our conclusions are (I) that under the varying See also:

jurisprudence of nations commercial treaties are adopted by See also:

COMMON

common consent; (2) that their provisions depend upon the general and fiscal policy of each state; (3) that tariff arrangements, if judiciously settled, benefit trade; (4) that commercial treaties are now entered into by all states; and that they are necessary under present conditions of commercial intercourse between nations. (C. M. K.*) See the British See also:

PARLIAMENTARY

parliamentary Return (Cd. 4080) of all commercial treaties between various countries in force on See also:

Jan.

1, 1908.

End of Article: COMMERCIAL TREATIES

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