Anglo-Portuguese Treaty of 1878


The Anglo-Portuguese Treaty of 1878 was an economic agreement between Portugal and Great Britain regarding their trade and a railway between their colonies in India. This treaty was in keeping with the Anglo-Portuguese Alliance 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 with British India, and the construction of a railway line. Portugal offered Britain salt monopoly in return. Goan salt was considered to be a threat to the salt monopoly exercised by the government in British India.

Main features

The main features of the treaty were:
The treaty had the following effects:
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.