Anglo-Irish Trade Agreement facts for kids

The Anglo-Irish Trade Agreement was a special deal signed on 25 April 1938. It was made between Ireland and the United Kingdom. The main goal was to stop the Anglo-Irish Trade War, which had been going on since 1933. This "trade war" was a time when both countries put extra taxes on each other's goods, making trade difficult.

Why the Agreement Was Needed

The British Prime Minister, Neville Chamberlain, talked about the main topics that needed to be discussed. He mentioned four big areas:

• The issue of partition, which was about the border between Ireland and Northern Ireland.
• Questions about defence, meaning military protection.
• Financial matters, dealing with money.
• And, of course, trade.

Chamberlain believed that Ireland and the United Kingdom really needed each other. He said that their natural interests and where they are located in the world would always bring them together. He felt that differences of opinion, not different interests, were what had kept them apart.

What the Agreement Changed

This important agreement did a few key things:

Ending Trade Taxes

The treaty got rid of the 20% tariffs (extra taxes) that both the United Kingdom and Ireland had been putting on each other's imported goods. This meant it became cheaper and easier for goods to move between the two countries.

Solving Old Debts

Ireland agreed to pay a final amount of £10 million to the United Kingdom. This payment was for something called "land annuities." These were payments for loans that the British government had given to Irish farmers before 1922. These loans helped the farmers buy land from British landowners. This agreement settled a long-standing financial issue between the two countries. Ireland saw this as a good deal because the total amount they would have paid over time was much higher.

Returning the Treaty Ports

One of the biggest changes was that the United Kingdom gave back the Treaty Ports to the government of Ireland. These were important naval bases located at Queenstown (Cobh), Berehaven, and Lough Swilly. The United Kingdom had kept control of these ports after the Anglo-Irish Treaty in 1921, which ended the Anglo-Irish War. Getting these ports back was a very significant step for Ireland's independence.

The agreement, including the return of the Treaty Ports, was officially made law in the United Kingdom through a special act called the Eire (Confirmation of Agreements) Act 1938.