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 Peace and Friendship of 1984 between Chile and Argentina on solving disputes, ship navigation rights and an exact definition of the border through the Straits of Magellan. Chile and Argentina, though never at war with each other, have named some of their border treaties as "peace treaties". The treaty ended the Beagle conflict and was the result of long standing negotiations between Chile, Argentina and the Vatican as mediator. The outcome of the Falklands war made the treaty possible. When consulted in a non-binding referendum on resolving the conflict by then President Raul Alfonsin, 82% of Argentine population voted in favor of signing the treaty. The treaty recognizes the