Methuen Treaty

Name for a treaty concluded in Lisbon on 27 December 1703 between England and Portugal with major effects on the production and trade of port wine. It is named after the English politician and Lord Chancellor John Methuen (1650-1706), who negotiated this historically important agreement as ambassador to Portugal. Essentially, it was about customs concessions for the import of Portuguese wines in England. Specifically, the treaty provided that England could export textiles to Portugal (and its colonies) without hindrance, while Portugal exported port wine to England. It was particularly advantageous for England because it acquired a market for its products during the beginning of the Industrial Revolution and made Portugal economically dependent on England.

Methuen Treaty - Porträt und Portweinflaschen

Sales for Portuguese wines were promoted at the expense of all other European wines, especially France. England got the wine at a third cheaper than French or European wines. The treaty was the cause of a boom in port wine production and pushed wines from Bordeaux and Burgundy to the back of the queue in England. For Portugal, the treaty was of great disadvantage because its textile economy was destroyed and as a result the industrial revolution took place much later and on a smaller scale. See also under Factory House.

John Methuen: By Adrien Carpentiers, Public domain, Link

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Methuen Treaty

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