Treaty of Balta Liman

The Treaty of Balta Liman was a commercial treaty signed in 1838 between the Ottoman Empire and the United Kingdom of Great Britain and Ireland, regulating international trade. Duties were set at 3% on imports, 3% on exports, 9% on transiting exported goods, and 2% on transiting imported goods. The Ottomans also agreed to the abolition of all monopolies. Factors that helped shape the treaty included the writings of David Urquhart, who had advocated for the abolition of monopolies (of which opium was the most prominent outside of Egypt) in order to bolster further trade with the Ottoman Empire and decrease British dependency on Russian raw materials. There were also numerous complaints of British businessmen who were subject to duties levied on goods transshipped across the Ottoman Empire and arbitrary levies by local pashas. These duties were mainly confined to the realm of exports, while imports could be traded at ports for the traditional rate of 3%.

One factor that helped the British push the treaty through was the military dispute between rogue Ottoman Vassal Mehmet Ali of Egypt and the Ottoman Imperial Center that dated to 1831. In 1831, Mehmet Ali of Egypt's son Ibrahim Pasha led a successful military expedition into Syria, and established himself as governor. This invasion led to Ottoman retaliation and the eruption of hostilities that culminated in 1833, at which point Ibrahim's troops were within striking distance of Istanbul. Russian intervention, however, saw to Ibrahim's defeat. Despite this, Mehmet Ali continued to govern Syria, and in May 1838 informed both British and French Consulates of that he resolved to declare independence from the Ottoman Empire. This move was opposed by both the Great Powers and the Ottoman Empire, which, under Mahmud II, began preparing for military action to prevent secession. In the midst of this dispute, on August 16 of 1838, the Treaty of Balta Liman was passed. While there was no clear quid pro quo agreement, the treaty's passage helped to ensure British support of Ottoman territorial integrity, a position which had in actuality already been held by Palmerston, the Secretary of Foreign Affairs, but was formally declared the following month. When Muhammad Ali refused to implement the agreement because of the threat this posed to his nascent industrialisation project, Sultan Mahmud II gave him a year's grace period, after which Muhammad Ali still refused to comply. In 1840, the Ottomans, with British assistance, attacked and reasserted control over Syria. The effects of the treaty are disputed, but many contend that it opened Ottoman markets to increased British imports and was detrimental to Ottoman producers.