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
Nepal–Britain Treaty of 1923 some areas of the Terai region that comprises today's Banke, Bardiya District, Kailali, and Kanchanpur districts of western terai collectively known as "Naya Muluk" ("New Country") were returned to Nepal. Nepal also helped the British in the First World War. The relation between Nepal and Britain was generally good both before and after the treaty. The then Prime Minister of Nepal, Chandra Shamsher wanted to conclude a treaty with Britain for the recognition of the independence of Nepal. Aware of the implied restrictions placed upon the foreign policy of Nepal by the Sugauli Treaty, he wanted Nepal to be recognized