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The Anglo-Irish Trade War (also called the "Economic War") was a retaliatory trade war between the Irish Free State and the United Kingdom lasting from 1933 until 1938. It involved the refusal of the Irish state to pay "land annuities" (a provision of the 1921 Anglo-Irish Treaty) and the retaliatory imposition by the UK of 20% import duty on Irish agricultural products. Ireland followed with a tax on coal imports from the UK. While the UK was largely unaffected, the Irish economy was virtually crippled, and the resulting capital flight reduced much of the economy to a state of barter. In 1934 the "Coal-Cattle pact", eased problems, followed by the Anglo-Irish Trade Agreement of 1938. This treaty settled the land annuities question with a once off payment of £10m to the UK. It also involved the return to Ireland of the Treaty Ports.
