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To quote an authority: "Most of these countries have treaties under which each must grant most-favoured-nation treatment to the other; and this means that a reduction in duties granted to one country is automatically extended to all other countries with whom such treaties exist. The result is that the lowest rate in any treaty becomes, with exception, the rate extended to all countries."
By the Treaty of Frankfort the French had been compelled to confer on Germany the most-favoured-nation clause, thus entitling her to enjoy all the tariff reductions which the Republic might accord to those countries with which it was on the most amicable terms.
Her commercial connexion with America dates from the treaty of "friendship and commerce" made by Frederick the Great, and having the most-favoured-nation treatment as its basis; a regular treaty of the same kind between Prussia and America was entered into in 1828; and since then commercial relations have been regulated provisionally by a series of short-term agreements which, however, America claims, do not confer on Germany unrestricted right to most-favoured-nation treatment.
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