Treaty Bargaining

Treaty Bargaining: International Incident

In the book “International Incidents for Discussion in Conversation Classes”, in relation to this subject, L. Oppenheim wrote in 1909: States A and B enter into a new commercial treaty in which, among other stipulations, it is agreed that state A should lower by 20 per cent. its general import duty on manufactured cotton goods coming from state B, and that, in return for this reduction, the latter should reduce by 20 per cent. its general import duty on manufactured leather goods coming from state A.

Some of the other states possessing commercial treaties with A and B, which embody the most favoured nation clause, at once demand from A and B that the reduction of 20 per cent. of import duty on manufactured cotton and leather goods should also be granted to the imports from their respective territories.