Methuen Treaty  The Methuen Treaty was a military and commercial treaty between England and Portugal that was signed in 1703 as part of the War of the Spanish Succession. The treaty stipulated that no tax higher than the tax charged for an equal amount of French wines could be charged for Portuguese wines "(but see below)" exported to England, and that no English textiles exported to Portugal would be charged any taxes, regardless of the geopolitical situation in each of the two nations (to ensure England would still accept Portuguese wine in periods when not at war with France). Results of the deal were mixed. On the negative side, the country would not develop its industrial infrastructures (and therefore could be said to have lost the industrial race) and other types of agricultural products, but that is debatable, since this period saw the appearance of other industries in Portugal, such as the manufacturing of porcelain. Some of the factories that appeared in this period still exist. On the positive side, Portugal retained a strong political position on a stage that revealed itself to be fundamental in preserving the territorial integrity of its most important colony, Brazil, as argued by the Brazilian economist Celso Furtado, in his work "Brazilian Economic Foundation". At the start of the War of Spanish Succession Portugal was allied with France. As part of this treaty the French had guaranteed the Portuguese naval protection. In 1702, the English navy sailed close to Lisbon on the way to and from Cadiz, proving to the Portuguese that the French could not keep their promise. They soon began negotiations with the Grand Alliance about switching sides. There were actually two Methuen Treaties. Both were negotiated for England in Lisbon by John Methuen ( 1650–1706), who served as a member of Parliament, Lord Chancellor of Ireland, Privy Counsellor, envoy and then ambassador extraordinary to Portugal. The first, signed in May, was a military alliance that cemented allegiances in the War of Spanish Succession, and was a 4-party treaty negotiated by Karl Ernst, Graf von Waldstein for the emperor, Franciscus van Shonenberg (AKA Jacob Abraham Belmonte) for the United Provinces, and King Pedro II for Portugal, with Methuen's son Sir Paul Methuen (1672-1757) aiding him. The second one, the more well-known trade treaty, was a 2-party treaty signed on 27 December for England by Methuen and for Portugal by Manuel Teles da Silva, 3rd Marquis of Alegrete (1682-1736).