Trading policy

• Needed because of disruption caused by the American war of Independance
• Needed because Britain traded more with Europe
• Needed because Pitt believed that trade barriers were politically dangerous and caused wars
• the policy was to protect a country’s trade, large taxes were charged on goods from other countries
• Pitt believed that ‘free trade’ suggested greater economic wealth
• The Eden Treaty with France in 1786 gave citizens of Britain and France free access to goods
• lowered import taxes on wine, textiles and leather
• the Treaty was also a large reason why British trade to Europe doubled between 1783-92 turning a trade deficit of £2 million into a surplus of £2 million
• Outcome - outbreak of war in 1793 proved the Treaty’s undoing and was abandoned soon after