The Treaty of reciprocity between the United States of America and the Hawaiian Kingdom (Hawaiian: Kuʻikahi Pānaʻi Like) was a free trade agreement signed and ratified in 1875 that is generally known as the Reciprocity Treaty of 1875.
The treaty gave free access to the United States market for sugar and other products grown in the Kingdom of Hawaii starting in September 1876. In return, the US gained lands in the area known as Puʻu Loa for what became known as the Pearl Harbor naval base. The treaty led to large investment by Americans in sugarcane plantations in Hawaii.
For decades, the sugar planters in Hawaii had been economically hampered by United States import taxes placed upon their product, and consequently has been attempting negotiations for a free trade agreement. Two previous efforts at reaching an agreement with the United States failed, for many reasons. The planters wanted a treaty, but Hawaiians feared it would lead to annexation by the United States. Sugar refineries in San Francisco lobbied for a clause protecting their interests. The most recent effort before Kalākaua's reign died in the United States Senate.
Within a year of Kalākaua's election, the treaty would become a reality, although the treaty was not supported by all Hawaiians. There were concerns over American ambitions to annex the islands, with many in the business community willing to cede the exclusive use of Pearl Harbor to the United States in exchange for the treaty. Part of Kalākaua's election platform, as "Hawaii for Hawaiians", had been to oppose the ceding of any sovereign land. Hawaii legislator Joseph Nāwahī predicted the treaty would be "a nation snatching treaty".
At the urging of Hawaii's businessmen and the kingdom's newspapers, Kalākaua agreed to head a Reciprocity Commission consisting of sugar planter Henry A. P. Carter of C. Brewer & Co., Hawaii Chief Justice Elisha Hunt Allen, and Minister of Foreign Affairs William Lowthian Green. After several months of negotiations, the treaty was signed on January 30, 1875, ratified by the Kingdom of Hawaii April 17, and ratified by the United States on May 31, For the US, signers were Secretary of State Hamilton Fish and president Ulysses S. Grant. without giving away any Hawaiian land. It allowed certain Hawaiian goods, mainly sugar and rice, to be admitted into the United States tax-free, for a period of 7 years. In return, Hawaii agreed not to levy import taxes on American-produced goods coming into Hawaii. The first shipment of sugar from Hawaii to the United States under the treaty arrived in San Francisco in September 1876 in a ship commanded by Captain William H. Marston.