Manila Galleon Trade: History and Impact

The Manila Galleon Trade

• The Manila Galleon Trade was a lucrative trade route between the Philippines, Mexico, and Spain.
• Ships were frequently targeted by pirates during the galleon trade, leading to significant losses.
• To combat piracy, King Philip ordered an armed escort, the Armada, to protect galleons in 1593.
• Before 1593, three or more ships sailed annually; afterward, only two ships per year were permitted.
• The galleon trade was a key driver of globalization in the 16th century, connecting Asia and Europe.
• Manila Galleons were designed to carry considerable goods and passengers, housing up to 1,000 passengers and built with strong Philippine hardwoods.
• The trade relied on a silver standard, using Mexican silver to buy East Asian goods.
• The Manila to Acapulco voyage took roughly four months.
• Filipinos comprised a significant part (50-80%) of galleon crews but often were paid less than their Spanish counterparts.
• The trade impacted the Philippines with economic benefits and cultural exchange, but also exploitation and inequality.
• Spain's economic initiatives and involvement in wars during the last half-century of the Galleon trade hindered trade and caused hardship.
• Revolts against Spanish rule in colonies like Cuba, Puerto Rico, Costa Rica, Colombia, Argentina, and Mexico in the late 1700s and early 1800s weakened the galleon trade and led to colony loss.
• The galleon trade's decline, coupled with social inequalities, led to economic hardship, inflation, and widening wealth gaps.
• King Charles III tried reviving the trade through liberalization in the 1790s.
• The Mexican War of Independence (1810-1813) significantly exacerbated the galleon trade's decline.