Provinces and other foreigners, the Swedes only excepted. The colonial
and navigation policy of the 17th century, and the proceedings of Louis
XIV., provoked animosities and retaliatory tariffs. During the War of
the Spanish Succession the Methuen Treaty of 1703 was concluded.
Portugal removed prohibitions against the importation of British
woollens; Great Britain engaged that Portuguese wines should pay
one-third less duty than the rate levied on French wines. At the peace
of Utrecht in 1713 political and commercial treaties were concluded.
England agreed to remove prohibitions on the importation of French
goods, and to grant most favoured nation treatment in relation to goods
and merchandise of the like nature from any other country in Europe; the
French general tariff of the 18th of September 1664, was to be again put
in force for English trade. The English provision was at variance with
the Methuen Treaty. A violent controversy arose as to the relative
importance in 1713 of Anglo-Portuguese or Anglo-French trade. In the end
the House of Commons, by a majority of 9, rejected the bill to give
effect to the commercial treaty of 1713; and trade with France remained
on an unsatisfactory footing until 1786. The other commercial treaties
of Utrecht were very complete in their provisions, equal to those of the
present time; and contained most favoured nation articles--England
secured in 1715 reduction of duties on woollens imported into the
Austrian Netherlands; and trading privileges in Spanish America.
Moderate import duties for woollens were obtained in Russia by the
commercial treaty of 1766. In the meanwhile the Bourbon family compact
of the 15th of August 1761 assured national treatment for the subjects
of France, Spain and the Two Sicilies, and for their trade in the
European territories of the other two states; and most favoured nation
treatment as regards any special terms granted to any foreign country.
The first commercial treaties concluded by the United States with
European countries contained most favoured nation clauses: this policy
has been continued by the United States, but the wording of the clause
has often varied.

In 1786 France began to effect tariff reform by means of commercial
treaties. The first was with Great Britain, and it terminated the
long-continued tariff warfare. But the wars of the French Revolution
swept away these reforms, and brought about a renewal of hostile
tariffs. Prohibitions an