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 1881 between Chile and Argentina that older boundary treaties became obsolete and both countries agreed to submit any future disputes to the decision of a friendly third country. The law of the sea at the time of the 1881 treaty was different from the articles of the 1982 Law of the Sea, which meant that Chile and Argentina adhered to the accepted practice of a three nautical mile territorial sea. Therefore, the treaty emphasized the delineation of land boundaries including islands but did not stipulate the offshore limits, which have since been expanded to . According to the Argentine view of the treaty, called the