Commercial treaty Commercial treaty A commercial treaty is a formal agreement between states for the purpose of establishing mutual rights and regulating conditions of trade. It is a bilateral act whereby definite arrangements are entered into by each contracting party towards the other—not mere concessions. For example, the Methuen Treaty was a commercial treaty between Portugal and England. Another example, between the close of the Napoleonic wars of 1815 and the year 1860, the tariff system of Great Britain was changed from elaborate protection to practically complete free trade. An attempt had indeed been made in 1786 to modify the rigidly protective
Boundary Treaty of 1874 between Chile and Bolivia Plenipotentiary in Bolivia) as follows: In 1874, Peruvian Navy officer Miguel Grau (Commander of the Navy during the war) advised to the diplomacy of his country the internationalization of the Bolivian province of Antofagasta In August 1874, Bolivia and Chile substituted the Treaty of 1866 with a new Treaty that kept the 24th degree parallel as the boundary between both countries but ended the Mutual Benefits Zone defined in 1866 between the 23°S and 25°S. Further, Chile relinquished its share of export taxes on minerals shipped from Bolivia, and Bolivia agreed not to raise taxes on Chilean enterprises in Bolivia