Trade Agreement In French
The policy of mercantilism in Europe was slightly mitigated by a series of agreements between several nations ahead of the Treaty of Eden of 1786. In addition to the Bourbon House, which renewed its Family Compact in 1761, the French opened some colonial ports for foreign trade in the same year. Twelve years later, the French government negotiated the Franco-Portuguese agreement of 1773. 1778, France signed the treaty on this and trade with the United States, still young, on the basis of reciprocal trade which violated British trade legislation; they also signed the Franco-American Alliance for Mutual Defence to protect it if it triggered a war, which it did. Including the significantly reduced tariffs mentioned above, the treaty also granted each state the status of the most favoured nation with regard to certain goods – French olive oil and British and French millinery – as well as for those not stipulated in the agreement. In addition, “tariffs have been set on certain products with respect to certain existing tariffs. Thus, French wines should not pay more than those paid by Portuguese wines in 1786, while French import duties on Irish sounds and British import duties on French lines should not exceed existing tariffs on Dutch and Flemish sheets.  “There is growing concern that the negotiation process is not moving fast enough to guarantee ratification of a possible agreement by the end of the year,” said an EU diplomat. Pitt chose William Eden for his work with the Board of Trade and Plantations and because Eden had extensive experience in managing economic problems, both in Ireland and in America, which Pitt thought would give Eden an exceptional insight into Anglo-French thinking.
Eden immediately went to work, and in April 1786 he forged an agreement with Gérard de Rayneval, his French counterpart. But despite Eden`s optimism, the British, and in particular Pitt Edenal, were not in favour of the original agreement because of its indeterminate nature. Pitt attempted to impose higher tariffs on the most important products of his time, which entered the Anglo-French market. The treaty was not as favourable in France as it was in England. The French rejected the agreement following two central complaints; Like English handicrafts, French crafts feared being replaced by cheaper manufactured products made in English machines. Moreover, French crafts had more traction in France than their English counterparts, as British industrial products triumphed over French industrial products. Secondly, the French felt that their wines were still too taxed compared to Portuguese wines.