About State of the Union History

1821 James Monroe - Free Trade Agreement with the King of Sweden



In a letter to the officials of the King of Sweden, Secretary of State John Quincy Adams stated that President James Monroe had by proclamation established a law of "perfect reciprocity" with the Government of Norway.  Now the President needed the "advice and consent" of the Senate to confirm the agreement, and officially make it into law.  

After the war, on March 3, 1815 Congress repealed several acts which imposed duties on ships and vessels and on goods, wares and merchandise imported into the United States.  The original duties were charged per ton, and established to protect or favor imports coming into the United Sates in American owned vessels.   The intent of repealing the act was to establish reciprocal free trade with other nations, and stated that such repeal would take effect in favor of any foreign nation, whenever the President "shall be satisfied that the discriminating or countervailing of such foreign nation, so far as they operate to the disadvantage of the United States, have been abolished".  The repeal of this law  in 1815, set a new law of reciprocal trade where nations would be free to bring their manufactured goods into our ports in exchange for American goods using their own vessels without any additional duties or fees.

After a lengthy explanation of why such reciprocal trade was not being extended to Great Britain.  (Great Britain refused to open trade with British West Indies with us).  President Monroe listed out a number of countries that had signed a reciprocal free trade agreement with the U.S..  These countries included the Kingdoms of the Netherlands, Sweden, Prussia, and with Hamburg, Lubeck, and Oldenburg.  There was still some work to be done.  In a few cases, the laws needed to be amended to allow the transport of manufactured goods and produce through other countries before reaching the United States, but it was a great start.
"The principles of this system of reciprocity, founded on the law of [1815-03-03], have been since carried into effect with the Kingdoms of the Netherlands, Sweden, Prussia, and with Hamburg, Lubeck, and Oldenburg, with a provision made by subsequent laws in regard to the Netherlands, Prussia, Hamburg, and Bremen that such produce and manufactures as could only be, or most usually were, 1st shipped from the ports of those countries, the same being imported in vessels wholly belonging to their subjects, should be considered and admitted as their own manufactures and productions"
One of the more significant free trade agreements negotiated was with the Government of Norway.  Recently Monroe had negotiated a free trade agreement with the King of Sweden and Norway to open the ports in Norway and Sweden to American merchants.  Monroe's Secretary of State, John Quincy Adams led the negotiations for this deal through his correspondence with Baron de Stackleberg, chargĂ© d'affaires of the King of Sweden.    On July 23rd 1821, Adams wrote a stern letter to Stackleberg that the Kingdom of Norway would not be granted free and reciprocal trade until all "discriminating or countervailing duties in the kingdom of Norway, so far as they operated to the disadvantage of the United States have been abolished".   Stackleberg responded on August 16 that the King of Sweden was willing to accept "perfect reciprocity" if the United States would pass a law "by which the Norwegian commerce may enjoy in the ports of the said States the same privileges and advantages" as those granted to American ships and vice versa. Just five days later, Adams had the pleasure of responding to Stackelberg that by proclamation of the President of the United States the vessels of Norway were to be entitled all the benefits and advantages listed in the March 3rd 1815 laws.   With a deal negotiated, Monroe now needed Congress to approve it as established in Article II of the Constitution which states that the President may negotiate with foreign nations "by and with the Advice and consent of the Senate".   Thus in his 1821 State of the Union Address, President Monroe asked Congress to officially grant that the Government of Norway "perfect reciprocity" where the vessels of Norway would pay no other or higher duties than American vessels in U.S. ports in return for the same reciprocal allowance of American vessels in the ports of Norway. 
"The Government of Norway has by an ordinance opened the ports of that part of the dominions of the King of Sweden to the vessels of the United States upon the payment of no other or higher duties than are paid by Norwegian vessels, from whatever place arriving and with whatever articles laden. They have requested the reciprocal allowance for the vessels of Norway in the ports of the United States. As this privilege is not within the scope of the act of [1815-03-03], and can only be granted by Congress, and as it may involve the commercial relations of the United States with other nations, the subject is submitted to the wisdom of Congress."
http://www.presidency.ucsb.edu/ws/index.php?pid=29463
American State Papers: Documents, Legislative and Executive, of the Congress of the United States, Volume 1; Volume 4 (1834) pgs 368 - 369
http://conginst.org/2011/12/12/trade-or-treaty-why-does-the-house-approve-free-trade-agreements/

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