The Anglo-Portuguese Treaty of 1878 was an economic agreement between

Portugal Portugal, officially the Portuguese Republic ( pt, República Portuguesa, links=yes ), is a country whose mainland is located on the Iberian Peninsula of Southwestern Europe, and whose territory also includes the Atlantic archipelagos of ...

and the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...

regarding their trade and a railway between their colonies in India. This treaty was in keeping with the

Anglo-Portuguese Alliance The Anglo-Portuguese Alliance (or , "Luso-English Alliance") is the oldest alliance based on known history in the world that is still in force by politics. It was established by the Treaty of Windsor in 1386, between the Kingdom of England ( ...

that dated back to the 14th century.

Aims

Portugal wanted to end Portuguese India's trade isolation, in order to expand its economy. This would be through a

Customs Union A customs union is generally defined as a type of trade bloc which is composed of a free trade area with a common external tariff.GATTArticle 24 s. 8 (a) Customs unions are established through trade pacts where the participant countries set up ...

with

British India The provinces of India, earlier presidencies of British India and still earlier, presidency towns, were the administrative divisions of British governance on the Indian subcontinent. Collectively, they have been called British India. In one ...

, and the construction of a railway line. Portugal offered Britain a monopoly on Goan salt production in return. Goan salt was considered to be a threat to the salt monopoly exercised by the colonial government in British India.

Main features

The main features of the treaty were: * Reciprocal freedom of commerce, navigation and transit between the two Indias; * Abolition of all custom duties on the frontier lines between

and Portuguese India; * Uniformity of customs duties in the two territories on goods imported and exported by sea with, however, special stipulations with regard to salt, spirits and opium; * Introduction into Portuguese India of the system of excise on spirituous liquours, including toddy, sanctioned by law in the Bombay Presidency; * Prohibition of the export from Portuguese India of opium, or its cultivation or manufacture, except on account of the British Government; * Monopoly power of the Bombay Presidency Government in British India on the manufacture of salt and its trade in Portuguese India, with the powers granted to the British India Government to limit the manufacture of salt and suppress if necessary, the salt works therein; and * Mutual agreement for the construction of a railway line from the town of New Hubli to the port of Mormugao and its extension from New Hubli to Bellari.

Effects

The treaty had the following effects: * It impoverished the native Goan peasants. * It resulted in the connection of Goa to British India by rail through the

West of India Portuguese Railway West or Occident is one of the four cardinal directions or points of the compass. It is the opposite direction from east and is the direction in which the Sun sets on the Earth. Etymology The word "west" is a Germanic word passed into some ...

, and the construction and development of the Mormugao Port. * British India was granted a monopoly of the salt trade in Goa. * The contraction of the Goan economy due to the treaty caused a large scale emigration of Goans to British India, mostly to

Bombay Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second-m ...

Termination

Due to the ill-effects of the treaty on Goan industry, there was pressure on the Portuguese to terminate the treaty. The government of British India also did not obtain substantial benefit from the treaty. This led to the termination of the treaty in 1892 due to non-renewal of the treaty by the parties.

Aims

Main features

Effects

Termination

See also

References

Further reading