Methuen Treaty

The Methuen Treaty was an offensive military and commercial treaty between Portugal and England signed in 1703 as part of the War of the Spanish Succession.

The Treaty stipulated that no tax could be charged for Portuguese wines (but see below) exported to England or English textiles exported to Portugal, regardless of the geopolitical situation of each of the two nations (this was to make sure that England would still accept Portuguese wine in periods when not at war with France).

He estipulado que Sua Sagrada e Real Magestade Britanica, em seu proprio Nome e no de Seus Sucessores será obrigada para sempre daqui em diante, de admitir na Grã Bretanha os Vinhos do produto de Portugal, de sorte que em tempo algum (haja Paz ou Guerra entre os Reynos de Inglaterra e de França), não se poderá exigir de Direitos de Alfândega nestes Vinhos, ou debaixo de qualquer outro título, directa ou indirectamente, ou sejam transportados para Inglaterra em Pipas, Toneis ou qualquer outra vasilha que seja mais o que se costuma pedir para igual quantidade, ou de medida de Vinho de França, diminuindo ou abatendo uma terça parte do Doreito do costume —

Some authors claim that the deal was negative for Portugal, since it meant that the country would not develop its industrial infrastructures (and therefore lost the industrial race) and other types of agricultural products. This is however, debatable, since this period saw the appearance of other industries in Portugal, like the manufacturing of porcelain. Some of the factories that appeared in this period have lasted until today.

Thanks to this treaty, Portugal retained a strong political position on a stage that revealed itself to be fundamental in preserving the territorial integrity of its most important colony, Brazil (as argued by the Brazilian economist Celso Furtado in his work "Brazilian Economic Foundation").