Staying dry on Spanish wine: The rejection of the 1905 Spanish-Italian trade agreement

Abstract

After a long debate on wine import tariffs, the Italian Parliament rejected the Spanish-Italian trade agreement on 17 December 1905. This decision left Spain and Italy without a bilateral trade treaty for an entire decade. In the literature, broader political issues and local interests are alternatively indicated as the main drivers of the rejection. Based on a new database which collects economic and political variables (including MPs personal features) and using a probit model, this paper provides a quantitative analysis of the vote. Results show that constituency interests had a role in determining the result of the vote on the trade treaty. Moreover, constituency interests were also important for the “vote switchers”, i.e. those MPs that supported the overall government policy stance in the first round, but opposed the Spanish-Italian trade agreement in the second.