Trade treaty

“ By the British treaty it was provided that a tariff and new trade regulations should be agreed upon. On learning of this provision, Commodore Kearny addressed a communication to the governor of Canton, in which, referring to the expected arrival at that place of the imperial commissioners to arrange commercial affairs with the British, he asked that citizens of the United States in their trade should "be placed upon the same footing as the merchants of the nation most favored." ”

“ Scope of a Treaty or Commerce.
I must begin with a definition.
It is usual to think of Treaties of Commerce as restricted to tariffs. Nothing is more erroneous and no popular error is more detrimental to an intelligent understanding of the subject. One unpropititious consequence of the error is that treaties of commerce are popularly supposed by some to be a counterblast to free trade, by others as a step towards it. In reality, treaties of commerce are simply agreements between States relating to trade carried on between them. ”

“ The power to regulate foreign commerce necessarily includes, as one of its incidents, the power to lay imposts on foreign goods, or even to prohibit them entry, (Vattel's Law of Nations, Bk. 1, c. 8, p. 39,) whenever the welfare of the State demands it. The right to trade with a foreign nation is therefore conventional, and the treaty that cedes the right is the measure or limit thereof-dependent on the will of the foreign sovereign, and not a right of prescription. And a foreign nation may limit its foreign trade to itself, or to its own vessels, by treaty or otherwise. ”

“ Our treaties with Holland, Prussia, and other powers, are of no consequence. It is not to the advantage of the United States to make any compact with any nation with respect to trade. Our trade is engrossed by a country with which we have no commercial treaty. That country is Great Britain. That monopoly is the result of the want of a judicious regulation on our part. It is as valuable and advantageous to them, on its present footing, nay, more so, than it could be by any treaty. It is the interest of the United States to invite all nations to trade with them ”

“ Our treaty with the Sublime Porte is producing its expected effects on our commerce. New markets are opening for our commodities and a more extensive range for the employment of our ships. A slight augmentation of the duties on our commerce, inconsistent with the spirit of the treaty, had been imposed, but on the representation of our charge d'affaires it has been promptly withdrawn, and we now enjoy the trade and navigation of the Black Sea and of all the ports belonging to the Turkish Empire and Asia on the most perfect equality with all foreign nations. ”

“ No practical regulation concerning colonial trade and the fisheries can be accomplished by treaty between the United States and Great Britain until Congress shall have expressed their judgment concerning the principles involved. ”

“ The Union shall comprise a customs union which shall cover all trade in goods and which shall involve the prohibition between Member States of customs duties on imports and exports and of all charges having equivalent effect, and the adoption of a common customs tariff in their relations with third countries. ”

“ It is pleasing to have the testimony of so high an authority to the efficient and useful service of an American officer.
In accordance with the British treaty, the new tariff, averaging the low rate of about five per centum, and the trade regulations, were put into operation by a notable proclamation of the imperial commissioner. "The tariff of duties," he announced, "will take effect with reference to the commerce with China of all countries, as well as of England. Henceforth the weapons of war shall forever be laid aside, and joy and profit shall be the perpetual lot of all." ”

“ In November, 1793, Great Britain adopted a similar principle with regard to the colonial trade, except that the orders issued at that time went further than the present principle. In consequence of these orders four or five hundred of our vessels were seized. Every one knows the conduct of the American Government at that time. A treaty was finally made in which Great Britain promised to pay for the aggressions committed by her vessels on neutral rights. But nearly ten years elapsed before our merchants received compensation for their losses. ”

“ The only operation which the British Treaty has upon that law is, that in consideration of our being freely admitted to the fur trade and the trade into Canada, which opens to the enterprise of our citizens a vast source of wealth and advantage, we only give in return to the subjects of the King of Great Britain the privilege of bringing, by land or inland navigation, into the United States, goods for which they pay no more duties than our citizens pay on goods imported in American bottoms. ”

“ Consequently, the determining the period when this trade is to cease universally, must be a subject of negotiation between the Powers; it being understood, however, that no proper means of securing its attainment, and of accelerating its progress, are to be neglected; and that the engagement reciprocally contracted in the present Declaration, between the Sovereigns who are parties to it, cannot be considered as completely fulfilled, until the period when complete success shall have crowned their united efforts. ”

“ It will be perceived that the trade must be with the enemy, not with the neutral. And here the author followed the suggestions of reason and the voice of American treaties. In the celebrated treaty with Great Britain negotiated by John Jay in 1794, after an enumeration of contraband articles, it is expressly said, “And all the above articles are hereby declared to be just objects of confiscation, whenever they are attempted to be carried to an enemy.” [101] Of course, when on the way to neutrals [Pg 69] , they are free. ”

“ Their report (dated January, 1866,) says:—
"'In accordance with the resolutions of Congress and the notification of the Executive, the commercial arrangement known as the "Reciprocity Treaty," under which the trade and commerce between the United States and the British Provinces of North America have been carried on since 1854, expires on the 17th day of March, 1866. ”

“ In conformity with the recommendation of Congress, a proposition was early made to the British Government to abolish the mixed courts created under the treaty of April 7, 1862, for the suppression of the slave trade. The subject is still under negotiation. ”

“ With such nations, the only wisdom is, to conclude treaties, not of reciprocity, but of commerce; that is, treaties in which, in consideration of certain branches of our manufactures being admitted on favourable terms, we agree to admit certain articles of their produce on equally advantageous conditions. Thus, a treaty, by which we agreed to admit, for a moderate duty, the wines of France, which we can never rival, in return for their admitting our iron and cotton goods on similar terns, would be a measure of equal benefit to both countries. ”

“ The reciprocity clause of the tariff act wisely and effectively opens the way to secure a large reciprocal trade in exchange for the free admission to our ports of certain products. The right of independent nations to make special reciprocal trade concessions is well established, and does not impair either the comity due to other powers or what is known as the "favored-nation clause," so generally found in commercial treaties. What is given to one for an adequate agreed consideration can not be claimed by another freely. ”

“ And further, that all such duties and imposts as may mutually be thought necessary to lay on them by either party shall be ascertained and regulated on principles of exact reciprocity by a tariff, to be formed by a convention for that purpose, to be negotiated and made within one year after the exchange of the ratification of this treaty; and in the meantime that no other duties or imposts shall be exacted from each other's merchants and ships than such as may be payable by natives in like cases. ”

“ The state of them has been materially changed by the act of Congress, passed at their last session, in alteration of the several acts imposing duties on imports, and by acts of more recent date of the British Parliament. The effect of the interdiction of direct trade, commenced by Great Britain and reciprocated by the United States, has been, as was to be foreseen, only to substitute different channels for an exchange of commodities indispensable to the colonies and profitable to a numerous class of our fellow-citizens. ”

“ The United States have every means, by nature, to enable them to distribute supplies mutually among one another; to supply other nations with many articles, and to carry for other nations. Our commerce would not be kindly received by foreigners, if transacted solely by ourselves. As it is the spirit of commercial nations to engross as much as possible the carrying trade, this makes it necessary to defend our commerce. But how shall we compass this end? England has arisen to the greatest height, in modern times, by her navigation act, and other excellent regulations. ”

“ As regards our commercial relations with our present allies and neutrals, the denunciation of existing commercial treaties is unnecessary and inexpedient, but the present opportunity should be taken to endeavor to promote our trade with our allies, and consideration should be given to the possibility of utilizing for purposes of negotiation with them and present neutrals any duties which may be imposed in accordance with the principles laid down above. ”

“ And even where freedom of commercial intercourse is made a subject of stipulation in a treaty, it is generally with a view to the removal of some previous restriction, or the introduction of some new privilege, most frequently, is identified with the return to a state of peace. But another view of the subject leads directly to the same conclusion. Power to regulate foreign commerce is given in the same words, and in the same breath, as it were, with that over the commerce of the States and with the Indian tribes. But the power to regulate foreign commerce is necessarily exclusive. ”

“ The conditions of these treaties should be the free admission of such merchandise as this country does not produce, in return for the admission free or under a favored scheme of duties of our own products, the benefits of such exchange to apply only to goods carried under the flag of the parties to the contract; the removal on both sides from the vessels so privileged of all tonnage dues and national imposts, so that those vessels may ply unhindered between our ports and those of the other contracting parties, though without infringing on the reserved home coasting trade ”

“ At each of the said five ports, citizens of the United States lawfully engaged in commerce, shall be permitted to import from their own or any other ports into China, and sell there, and purchase therein, and export to their own or any other ports, all manner of merchandise, of which the importation or exportation is not prohibited by this treaty, paying the duties which are prescribed by the tariff hereinbefore established, and no other charges whatsoever. ”

“ The confederation adds a proviso, "that no treaty of commerce shall be made whereby the legislative power of the respective states shall be restrained from imposing such imports and duties on foreigners as their own people are subjected to, or from prohibiting the exportation or importation of any species of goods or commodities whatever." ”

“ Or that the mere fact of a territory having been ceded by one sovereignty to another, opens it to a free commercial intercourse with all the world, as a matter of course, until the new possessor has legislated some terms upon which that may be done. There is no such commercial liberty known among nations, and the attempt to introduce it in this instance is resisted by all of those considerations which have made foreign commerce between nations conventional. 'The treaty that gives the right of commerce, is the measure and rule of that right.' Vattel, c. ”

“ In countries so far removed from Europe, as to prevent any one nation from making a monopoly, of its trade, this policy might exist. But could America lay up her ships, and say she would open her ports to all nations? No; that very instant you give up your trade to that nation which has the greatest power at sea; for she will immediately block up your ports, and oblige you to trade with them only. In order, therefore, to trade with all nations, we must be the carriers of our own produce, for other nations would not leave us at liberty to do so. ”

“ Cut off from France the colonies could only maintain themselves by direct trade with neutrals like the United States. But by the so-called rule of 1756, neutral commerce was forbidden under these conditions. Ports closed to neutral commerce in time of peace might not be thrown open in time of war. Flinging consistency to the winds, the French Convention decreed in February, 1793, that neutral states might trade with her colonies on the [Pg 77] same terms as French vessels. That Great Britain would refuse to sanction this trade was fully expected. ”

“ Frankly, Members of House and Senate, eager its I am to join you in the making of an American merchant marine commensurate with our commerce, the denouncement of our commercial treaties would involve us in a chaos of trade relationships and add indescribably to the confusion of the already disordered commercial world. Our power to do so is not disputed, but power and ships, without comity of relationship, will not give us the expanded trade which is inseparably linked with a great merchant marine. ”