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
Treaty of Gulistan for the Persians and used this to strengthen their foreign affairs. Using their new-found diplomatic connections with the British, Persia established the Treaty of Defensive Alliance in 1812. This promised that Britain would “offer a defensive alliance against further Russian encroachments”. It essentially had terms stating that Persia would provide defense against any European army from entering India (which stationed a majority of British troops) and in return, Britain would provide military and financial aid in case of another Russian attack. The treaty did not answer vital questions such as whether the Persian army would be disarmed or be able