The Dutch and the French also began establishing more permanent settlements in the West Indies. The Dutch colonized St. Martin and Curaçao, while the French settled Guadalupe, Martinique, and later Saint Domingue. The Dutch, however, profited mainly from carrying trade goods for other nations, while the French faced significant resistance from Carib Indians who resided on their island colonies. Thus neither developed their West Indies outposts to the same extent as the English. But even the English faced economic stagnation on Barbados as tobacco prices fell in the 1630s.

A few forward-looking planters were already considering another avenue to wealth: sugarcane. English and European consumers absorbed as much of the sweet gold as the market could provide, but producing sugar required expensive equipment and technical know-how as well as a large number of laborers. In addition, the sugar that was sent from America needed further refinement in Europe before being sold to consumers. The Dutch had learned the secrets of sugar cultivation from the Portuguese in Brazil, and they built the best refineries in Europe. But their small West Indies colonies could not supply sufficient raw material. By 1640 they decided to form a partnership with English planters, offering them the knowledge and financing to establish sugar plantations and mills on Barbados. That decision would reshape the economic and political landscape of North America and intensify competition for both land and labor.