Spain: commercial rivalry (Edexcel GCSE History): Revision Notes
Commercial rivalry with Spain
Background
By the 1570s, England and Spain had developed into serious commercial competitors. This rivalry extended beyond just political and religious differences - both nations were now fighting for control over lucrative trade routes and markets around the world. The conflict became particularly intense as English merchants, including famous privateers like Francis Drake, began challenging Spanish dominance of global commerce.
This commercial rivalry was driven by economic necessity as much as political ambition. Both nations recognised that control of global trade routes would determine their future prosperity and international power.
Spain's commercial advantages
Spain held several major advantages in international trade during this period. The Spanish had successfully colonised vast territories in Mexico and Peru during the early 1500s, which provided their government with enormous wealth through regular shipments of gold and silver back to Europe. This colonial wealth gave Spain significant control over trade in sugar cane and tobacco, making them a dominant force in global commerce.
Additionally, Spanish control extended to crucial trade routes in Europe itself. The Netherlands and important waterways like the Scheldt and Rhine estuaries were under Spanish authority, which meant they could effectively block English traders from accessing some of the most profitable commercial routes to European markets like Turkey, Russia, China and North Africa.
Spanish control of both American colonies and European trade routes created a virtual monopoly that severely limited opportunities for other European nations, particularly England.
English commercial frustration
The Spanish commercial dominance created serious problems for English traders and the English economy. Because Spain controlled key trade routes and territories, English merchants found themselves cut off from many profitable opportunities. The Spanish government required all trade in the Americas to be licensed by them, which meant English traders could not legally participate in this lucrative market.
This situation forced English traders to look for alternative ways to make money, often bringing them into direct conflict with Spanish interests. The loss of access to traditional European trade routes through Spanish-controlled territories significantly reduced the income and profits that English merchants could expect from their ventures.
Elizabeth's support for privateering
Queen Elizabeth I demonstrated her defiance of Spanish commercial control through her support of English privateers. Her most significant gesture came in 1581 when she knighted Francis Drake, showing clear royal approval for his activities against Spanish interests. This action sent a strong message that England would not simply accept Spanish domination of world trade.
Historical Example: The Knighting of Drake
Elizabeth I's decision to knight Francis Drake in 1581 was a calculated political move. By publicly honouring Drake despite Spanish protests, she was effectively declaring that England would support any challenge to Spanish commercial monopolies, even if it meant backing what the Spanish considered piracy.
For King Philip II of Spain, Drake and other English privateers represented more than just pirates - they were a direct threat that needed to be eliminated through warfare if necessary. Philip viewed getting rid of Elizabeth I and Drake as the only effective way to protect Spain's commercial interests from English interference.
Impact of English privateering
English privateering activities, particularly those led by Francis Drake, caused substantial financial damage to Spanish commercial interests. Drake's successful raids demonstrated that Spanish control of the seas was not as secure as previously believed.
In 1572, Drake captured approximately worth of Spanish silver in a single raid, showing that individual attacks could yield significant profits while hurting Spanish finances. Even more dramatically, Drake's circumnavigation expedition between 1577 and 1580 resulted in the capture of an additional worth of silver and gold from Spanish ships and colonies.
To put these figures in perspective, £400,000 in the 16th century represented an enormous sum - equivalent to several years of royal income for most European monarchs.
Elizabeth I also encouraged Dutch rebels, known as the 'Sea Beggars', to attack Spanish shipping travelling between Spain and the Netherlands. This created additional pressure on Spanish commercial operations and further disrupted their trade networks.
By 1580, these accumulated losses had severe consequences for Spanish government finances. The Spanish administration in the Netherlands became bankrupt and could no longer afford to pay its soldiers, directly weakening Spanish military control in this crucial region.
The bankruptcy of Spanish forces in the Netherlands demonstrates how effective privateering could be as both an economic weapon and a military strategy, weakening enemy positions without formal declarations of war.
Timeline of key events
- 1570s: Commercial rivalry between England and Spain intensifies
- 1572: Drake captures in Spanish silver
- 1577-1580: Drake's circumnavigation expedition captures in Spanish wealth
- 1580: Spanish government in Netherlands becomes bankrupt due to privateering losses
- 1581: Elizabeth knights Francis Drake, showing royal support for anti-Spanish activities
Key Takeaways
Key Points to Remember:
- By the 1570s, England and Spain had become serious commercial rivals competing for global trade routes and markets
- Spanish control of the Netherlands and American colonies blocked English merchants from profitable opportunities
- Elizabeth I's decision to knight Francis Drake in 1581 demonstrated royal support for challenging Spanish commercial dominance
- Drake's privateering expeditions captured over in Spanish wealth, causing significant financial damage
- By 1580, privateering losses had bankrupted the Spanish government in the Netherlands, weakening their military position