THE POLITICAL INSTABILITY OF RECIPROCAL TRADE AND THE OVERTHROW OF THE HAWAIIAN KINGDOM

The overthrow of the Hawaiian monarchy in 1893 offers an illuminating case study of the political economy of preferential trading relationsh ips between large and small countries. The limited-term reciprocity tr eaty of 1876 between Hawaii and the United States generated problemati c strategic dynamics, as the normal operation of the treaty gradually worsened Hawaii's bargaining position. This allowed the United States to extract better terms when the treaty expired in 1883 and to act opp ortunistically in 1890 with the passage of the McKinley Tariff. The po litical economy of the treaty contributed significantly to the overthr ow of the Hawaiian monarchy.