1703: The Methuen Treaty

Abstract

This chapter examines the Methuen Treaty signed between Portugal and England on 27 December, 1703. It analyses the context that preceded the treaty and the negative perceptions it received from the mid-eighteenth century to the present day, in terms of its impact on Portugal's economic backwardness. The Methuen Treaty is seen as a confirmation of the strategic alliance between Portugal and England, and is still considered responsible for the opening of domestic and colonial markets to the English trading communities of Lisbon and Porto. However, this chapter emphasises that the Brazilian gold cycle also contributed to the growth of other foreign merchant communities in Portugal at the time.