The economic doctrines in the wine trade and wine production sectors: the case of Bastiat and the Port wine sector: 1850-1908

position was adopted in Portugal by several authors and influential figures of the trading
association of Porto and the liberal movements of the city. This is the most obvious link of
the diffusion of the liberal ideas of Bastiat and French optimists and Portuguese counterparts.

In a paper published in the Journal des Économistes in January 1841, with the title “Le
Fisc et la vigne”, Bastiat treats the issue of taxes and the production and trade of alcoholic
beverage, namely wine. The tax system was creating discrimination for the producers that
were located in one district and selling the wine in the next, contiguous district. Bastiat
arguments the case for its lack of fairness for small winegrower that practiced themselves
wine trade on a regional scale. He proposes the use of the association right for the
winegrowers for changing the situation through negotiations. Something that is quite similar
in the workings of the port-wine trade among the wine merchants of Porto.

In another paper, presented at the Société d’Agriculture, Commerce, Arts et Sciences
of the Landes department, in January 1843, he inquires the causes of the distress of the wine
production of the department. He questions the responsibility of the winegrowers, their
attitude toward the improvement of culture and production. Again a similar argument is used
in the Portuguese case.

3. Main features of the port-wine sector

During the 18^th and 19^th centuries, the Douro wine trade was one of the most important
economic sectors in Portugal (Pereira 1971, Bennett 1990, Martins 1990, Pereira 1991,
Bennett 1994, Martins 1998, Pereira 1998). It was by far the first wine production area both
in quantity and quality. If wine often covered half of the imports, the port wine often
corresponded to 20 to 20% of the total value of imports. It was one of the main tax receipts
for the state treasure and it constituted an important element of the Portuguese economy given
the increasing or continual difficulties of the country and the state from the time of the French
invasions (1807-1811) to the end of the monarchy in 1910 (and even beyond).

This region, referred to as Alto Douro or Upper Douro, is of a distinctive geographical
character, both compared to the East and to the West parts of the river.⁹

⁹ There were some historical competitors to the Port wine like the Xerex or Jerez de la Frontera, liquor that
occupied an intermediary position between plain wines and whiskies and other strong liquors.

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