Navigation Act

Can one country prevent others from participating in trade? This is what Britain tried to achieve with its Navigation Acts—a series of laws mainly issued in the 17th and 18th centuries. These Acts were protectionist in nature within the economic system of British mercantilism. The purpose of these regulations was to protect and increase British imperial wealth through trade and shipbuilding. On the one hand, Britain eventually grew to be the most powerful empire in the world. On the other hand, it lost its American colonies in part, because of these Acts.

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    Navigation Act The Battle of Terheide StudySmarter

    Fig. 1 - The Battle of Terheide, by Jan Abrahamsz Beerstraaten, ca. 1653-1666.

    Navigation Act: Definition

    The Navigation Acts were British laws released starting from the first Navigation Act in 1651. These laws regulated many aspects related to maritime trade, such as shipping, in order to protect British commercial activities in Europe and its colonies and limit those of its European rivals, such as the Netherlands.

    For example, the 1651 Navigation Act differentiated between the types of goods. Both British ships and ships from other European countries were allowed to transport European goods to Britain. In contrast, items from abroad, such as in Africa, could only be transported by using British or British colonial ships. Likewise, only British ships could engage trade off that country's coast. This particular act was meant to challenge another powerful maritime country, the Netherlands.

    The Purpose of the Navigation Acts

    The overall purpose of the Navigation Acts was:

    1. to grow British trade and shipping around the world,
    2. and to restrict other European countries from challenging Britain.

    The legislation was protectionist.

    However, even though the first Navigation Act was issued in 1651, it was only toward the middle of the following century that Britain’s enforcement of these acts became more aggressive.

    One of the main reasons for their enforcement was the need to pay off war debts from the French and Indian War (1754–1763) in North America and the Seven Years' War (1756-1763) in Europe. The Acts also helped exert greater control over the American colonies by issuing duties on key goods, such as tobacco and molasses.

    Protectionism is an economic system that protects domestic manufacturing and trade by different methods including tariffs (taxes) on foreign goods.

    Tariffs are taxes attached to goods imported from a foreign country in order to protect the domestic economy.

    As a result, Britain’s Navigation Acts served as one of the main reasons for the growing dissatisfaction in its American colonies. Consequently, they were one of the catalysts for the American Revolution. The Navigation Acts should be viewed in the context of other British regulations such as the Molasses Act (1733) that contributed to dissent in the Thirteen Colonies.

    British Mercantilism

    The economic system of mercantilism arose in Europe in the 16th century. This was a time of important changes. Renaissance humanism arose in European culture and the arts. The continent’s monarchies, including Portugal, Spain, France, Britain, and the Netherlands, began exploring, conquering, and settling the world outside Europe. In economics, mercantilism began to replace Medieval feudalism in which land access was exchanged for labor and service. However, the institution of feudalism as a whole—with its political, legal, and social implications—was slower to decline.

    • Mercantilism was a European economic system of the 16th-early 18th century that used such measures as tariffs in order to protect trade by increasing exports, decreasing imports, and preventing the colonies from purchasing foreign products. Mercantilism also used a system of processing raw materials into usable products in the colonies.
    • The system of mercantilism presupposed limits to the amount of global wealth available. This belief prompted the European powers to fight for what they perceived to be their share. One way in which European countries attempted to grow wealth was by growing trade through exports and minimizing imports with tariffs.
    • Mercantilism also used the export of raw materials from the colonies into other colonies for processing and then their sale back to Europe. This system made the empires self-sufficient. The European countries even resorted to military conflicts in order to protect trade routes and access to markets as part of mercantilism.

    Important Dates

    In the 17th-18th centuries, Britain released several protectionist Navigation Acts which covered maritime trade, imports, and exports. Britain also issued other related regulations which impacted colonial economics.

    DateLegislation
    1651

    Act for Increase of Shipping, and Encouragement of the Navigation of this Nation

    1660

    Act for the Encouraging and Increasing of Shipping and Navigation

    1663

    Act for the Encouragement of Trade

    1673

    Act for the Encouragement of the Greenland and Eastland Trades

    1696

    Act for Preventing Frauds and Regulating Abuses in the Plantation Trade

    1733

    Molasses Act

    1764

    Sugar Act

    1764

    Currency Act

    1765

    Stamp Act

    1766Revenue Act
    1767Free Port Act
    1767

    Townsend Act

    The Navigation Act: Effects on the Colonies

    The British Navigation Acts significantly contributed to the growing dissent in the American colonies. The Acts prohibited the colonies from trading with countries other than Britain—or its colonies elsewhere—and trade was to be conducted by using British vessels. The unpopularity of these regulations was only matched by the way they were ignored or disobeyed outright—by smuggling.

    Navigation Act Thirteen Colonies StudySmarter

    Fig. 2 - Thirteen Colonies in 1774, McConnell Map Co, 1919.

    Issues with the Navigation Acts

    There were a number of issues linked to the Navigation Acts. They affected colonial economies and increased British control over the American settlements.

    The Navigation Acts of 1651 Related to Colonial Life

    Britain’s initial Navigation Act of 1651 sought to protect its trade.

    1. First, it ordered a British inspection for exports from its colonies before being able to enter the rest of Europe.
    2. Second, this Act prohibited foreign ships from conducting trade operations along the coast of Britain. This Act specifically targeted the Dutch—Britain’s main maritime competitor at this time.

    Disobeying the Navigation Acts also served as the justification for increasing British control over its American settlements by converting them to royal (crown) colonies.

    For instance, in 1692 the Massachusetts Bay colony became a royal colony after its charter was revoked. This event came in the wake of the 1684 ruling by a Court in Britain that the colony deliberately violated British regulations such as the Navigation Acts. The British crown went further and established the Dominion of New England by revoking the charters of other colonies in its geographic proximity. Sir Edmund Andros took on the role of a central administrator of this vast territory.

    In Virginia, the dissatisfaction with the Navigation Acts even led to Bacon’s Rebellion (1675-1676), according to some historians.

    • Virginia relied on tobacco exports, and the price reduction in the 1660s left many locals placing the blame onto Sir William Berkeley, the royal governor of the territory. The Navigation Acts and several other grievances spilled over into a rebellion led by Nathaniel Bacon. In the short term, the results of Bacon's Rebellion limited the governor’s power but also increased the slave trade. Some scholars view events like this early revolt as one of the precursors of American independence. Others believe the rebellion was primarily about a local power struggle.

    Navigation Act The Burning of Jamestown StudySmarter

    Fig. 3 - The Burning of Jamestown, by Howard Pyle, c. 1905.

    Other Legislation

    Later on, the purpose of the 1733 Molasses Act was to challenge Britain’s French commercial competitors in the West Indies.

    • Molasses was used to make certain types of sugar and was a key ingredient in rum production. Britain sought to make its imported molasses more affordable by imposing a tax on this product coming from anywhere other than the British colonies. This measure negatively affected one of the main industries in New England: distilling and exporting rum. The colony bypassed this measure through smuggling. This type of illegal activity prompted Britain to issue the Sugar Act in 1764 which increased colonial dissatisfaction even further. The stringent enforcement of the growing list of British regulations toward the middle of the 18th century greatly contributed to dissent in the American colonies.

    The French and Indian War

    The French and Indian War (1754–1763) took place between France and Britain with support from different Indigenous tribes on each side. The two European powers sought to control the upper Ohio River Valley. As was sometimes the case with colonial conflicts, the French and Indian War was linked to Europe's Seven Years' War (1756-1763). As a result of this conflict, the French essentially lost control of their colonies east of the Mississippi River through the Treaty of Paris (1763). Despite the territorial gain in North America, the British incurred significant debt from these two wars. From the British perspective, additional land benefitted the colonies, whereas the British troops protected them from the Indigenous tribes. In the eyes of the Americans, however, they already paid for this new territory in blood.

    Furthermore, many colonists did not fear the French and considered this conflict Britain’s problem. Taxation without representation was another key issue. American colonists believed that paying taxes to Britain should offer them a voice in the British Parliament. The British decision to additionally tax the colonies, therefore, became one of the key reasons for the American Revolution.

    Navigation Act Treaty of Paris StudySmarter

    Fig. 4 - Treaty of Paris, 1763.

    Navigation Acts - Key Takeaways

    • Britain issued several Navigation Acts primarily in the 17th-18th centuries. These were laws meant to protect the trade and shipping of its growing empire.
    • The Navigation Acts were part of the broader economic system of mercantilism based on tariffs and using raw materials from the colonies.
    • Britain also used the Navigation Acts as part of its colonial rivalry with other European great powers. Its greatest maritime opponent was the Netherlands.
    • Overall, the Navigation Acts and other related legislation, such as the Sugar Act, negatively affected the economy in the Thirteen Colonies. Britain overtaxed the colonies, in part, to pay for its war debts. Dissent in the colonies grew and eventually spilled over into the American Revolution.

    References

    1. Fig. 2 - Thirteen Colonies in 1774, McConnell Map Co, and James McConnell. McConnell's Historical maps of the United States. [Chicago, Ill.: McConnell Map Co, 1919] Map. (https://www.loc.gov/item/2009581130/) digitized by the Library of Congress Geography and Map Division), published before 1922 U.S. copyright protection.
    Frequently Asked Questions about Navigation Act

    What was the Navigation Act?

    The Navigation Acts were British regulations to protect its trade from competition domestically and abroad in its colonies in the 17th-18th centuries. Britain's most significant maritime competitor at this time was the Netherlands. For example, this type of regulation dictated that some goods could only be transported using British ships.

    Why did Parliament pass the Navigation Acts?

    The British Parliament passed the Navigation Acts to protect Britain's trade. Britain sought to grow its commercial activities and challenge its maritime rivals like the Dutch. This legislation was an early example of a public-private partnership.

    How did the Navigation Act affect the colonists?

    The Navigation Acts affected the colonists negatively. They viewed these laws as one of the ways in which Britain exerted excessive control over the Thirteen Colonies. At this time, many colonists had little connection to Britain because they were born in the New World. In the immediate aftermath, some colonists resorted to smuggling. In the medium term, the acts contributed to the dissent in the colonies which led to the American Revolution.

    What did the Navigation Act protect?

    The Navigation Acts protected British trade, including its shipping, and control over maritime trade routes and Briain's colonies abroad. This legislation also challenged Britain's commercial rivals.

    Why is the Navigation Act important?

    The Navigation Acts were important for several reasons. For Britain, the acts protected its trade and challenged its competitors such as the Netherlands. Britain benefitted financially as a result. In the Thirteen Colonies, the acts were unpopular because they controlled the colonists' own trade preferences and sometimes harmed their business relations with other countries. This dissatisfaction eventually spilled over into the American Revolution.

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    Test your knowledge with multiple choice flashcards

    What trade regulation did Britain issue in 1733?

    True or False:Tariffs are taxes attached to goods imported from a foreign country in order to protect the domestic economy.

    What New England industry did the Molasses Act and the Sugar Act affect the most?

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