The collapse of the monopoly policy

05The collapse of the monopoly policy

Why it fell

• Monopoly was an obstacle to European commercial penetration: Egypt had closed its markets to Europeans at a time when Europe, after the Industrial Revolution, needed markets.
• Britain concluded a commercial treaty with the sultan (August 1838) — Balta Liman, named after the place of signature in Turkey.
• It required the abolition of Muhammad Ali's commercial monopoly; he refused to implement it to protect Egypt's domestic production and its capacity to market it.
• Its application within the London Settlement marked the beginning of the fall of monopoly, opening the door to commercial treaties with foreign states and the reign of an atmosphere of economic freedom — in the foreigners' favour more than Egypt's.