Cobden-Chevalier Treaty and Customs Union Comparison
The Cobden-Chevalier Treaty of 1860
In 1860, Napoleon III opted for free trade by signing the trade treaty between France and Britain known as the Cobden-Chevalier Treaty. This treaty abolished customs duties for imports of raw materials and lowered them for semi-processed or processed goods. It also included a most favored nation clause, whereby if one of the two countries granted tariff advantages to a third country, those same advantages would automatically apply to the other signatory.
Before this treaty, the steel industry was forced to invest heavily in order to cope with competition. Despite these challenges, the French steel industry was strengthened, and its production tripled in just a few years—particularly the production of steel....