Trade

• Although national security was the most important factor of Henry's foreign policy, he did try to protect and promote English trade because of the financial benefits
• Given England's relatively weak position, Henry was usually not strong enough to offer favourable trade agreements
• Medina del Campo allowed the export of goods from Spain in foreign ships which led to his income from customs revenue rose from £33,000 in 1485 to £40,000 in 1509
• Main focus of English trade was with Burgundy because of the importance of the cloth trade through Antwerp
• Henry wished to expand the cloth trade but England's share remained largely unchanged, despite attempts to improve it with the Magnus Intercursus in 1496
• Henry placed an embargo on trade with Burgundy between 1493 and 1496 when Margaret of Burgundy gave support to Perkin Warbeck and ordered the merchants to move their trade to Calais
• The Magnus Intercursus ended the embargo which allowed English merchants to sell their goods wholesale anywhere in Phillip's lands, except in Flanders, without paying tolls or customs
• In 1506, when Phillip was forced to seek shelter from storms in England, Henry was able to negotiate the Malus Intercursus
• Malus Intercursus terms:

  • trade with Burgundy would be free
  • Phillip was not to impose any duties on the sale of English cloth
  • Phillip was not to exclude English cloth from his lands
  • Phillip's subjects still had to pay the duties outlined in the Magnus Intercursus
• The Malus Intercursus was so favourable to English merchants that it was very unpopular with Burgundy, so much so that by 1507 the previous state of affairs under the Magnus Intercursus was restored
• Henry renewed an earlier treaty with Portugal which encouraged trade
• Henry had initially confirmed the Spanish privilege of exemption from the duties payable by other foreigners on the import of English goods, he then imposed the Navigation Acts of 1485-86
• The Navigation Acts limited foreign control of English trade
• Spain retaliated on the Navigation Acts and forbade the export of goods from Spain in foreign ships if Spanish ships were available
• The Treaty of Medina del Campo ended the restrictions on trade between England and Spain
• Spain didn't allow England access trade in the New World, which had been one of Henry's hopes
• The Baltic was dominated by the Hanseatic League
• In 1471, the League gained considerable privileges from the English, such as lower taxes, because they supplied Edward IV with ships which had allowed him to regain his throne after his deposition by Henry VI in 1470
• Henry tried to limit Hanse privileges through the Navigation Acts, but it had little impact
• Henry also tried to get English merchants direct access to Northern trade, signing treaties with Denmark and Norway in 1489 and 1490 - attempted with Riga but failed and they rejoined the League
• Henry was forced into a settlement in 1504 which restored the favourable position the Hanse enjoyed under Edward IV
• The settlement was most likely because Henry was concerned the Hanse might give support to Yorkist Earl of Suffolk, suggesting trade was important but secondary to dynastic security