Abstract
In 1703 Portugal and England signed a trade agreement - the Treaty of Methuen - that involved only two goods: wool from England and wine from Portugal. I present a public choice analysis of the treaty's formation. The key British and Portuguese agents involved in writingit all acted in a self-serving manner. The effects of the treaty persisted, with England importing wine from Portugal instead of France - the superior wine producer. David Ricardo used the wool-wine trade of Portugal and England in his famous example of comparative advantage. However, France had the comparative advantage in wine production but lacked access to the English market partly due to the Treaty of Methuen. Thus the premier example of comparative advantage is partly an example of the persistence of rent seeking.
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