Economic security:

Challenges faced:

• Having enough money to pursue an active foreign policy.

• England’s relatively weak international standing - this meant that Henry was not usually able to offer favourable trade agreements to other countries.

• Protecting the Antwerp cloth trade.

• Expanding trade to break the grip of the Hansa and dependency on Antwerp.

Methods used:

• Cost effective foreign policy.

• Navigation acts 1485-86

• Trade deals

• Magnus Intercursus.

• Break the monopoly of Hanseatic league.

Cost effective foreign policy:

• E.g. avoidance of war in favour of diplomacy.

Navigation acts:

• 1485-86

• Prohibited English traders sending their goods on foreign ships when English ships were available.

Trade deals:

• E.g. Commercial treaty with Brittany 1496 and Medina del campo 1489.

• Allowed export of goods from Spain in foreign ships.

• I.e. Spain exempted from the navigation acts.

• Increase in customs revenue from £33,000 (1485) to £40,000 (1509).

• But Spain did not allow English access to trade in the new world.

Magnus Intercursus:

• 1496.

• Secured relatively free trades with Burgundy and allowed Antwerp cloth markets.

• But English merchants not allowed to sell cloth in Flanders.

• Henry’s attempts to secure more favourable terms under the Magnus Intercursus (1506) was unsuccessful.

Henry’s attempt to break the monopoly of the Hanseatic league in the Baltic region:

• Also wanted to break the trading privileges the Hansa enjoyed in England given to them by Edward IV.

• Did this by making trade deals with Denmark (1489), Norway (1490) and Riga (1499).

• BUT - Henry could not break the grip of the Hansa so was forced to make a trade deal with them in 1504.

• Had more success in the Mediterranean, making a trade deal with Florence (1490) - established an English staple or market for English cloth at Pisa. In response, Venice followed suit.

Degree of success:

• By 1509, English ships were transporting more cloth than all other shipping put together.

• Customs duties had increased but tailed off towards end of the reign.

• England’s trade was still over dependent on Antwerp and the Hansa.

• Henry was willing to sacrifice trade in the National / dynastic security.