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
Secret treaty financial arrangements, and 'military understandings'" are commonly cited as one of the causes of World War I. For example, the Reinsurance Treaty of June 1887 between the German Empire and the Russian Empire (negotiated by German Chancellor Otto von Bismarck in order for Germany to avoid a two-front war), was a "highly secret treaty" in which the two powers pledged a three-year period to remain neutral should the other become involved in a war with a third country, unless Germany attacked Russia's longstanding ally France or Russia attacked Germany's longstanding ally Austria-Hungary. The use of "secret agreements and undertakings between