English economic policies toward the colonies were designed to yield customs revenues for the monarchy and profitable business for English merchants and shippers. Also, the policies were intended to divert the colonies’ trade from England’s enemies, especially the Dutch and the French.

The Navigation Acts of 1650, 1651, 1660, and 1663 (see “Government Policies and Political Conflict” in chapter 3) set forth two fundamental rules governing colonial trade. First, goods shipped to and from the colonies had to be transported in English ships using primarily English crews. Second, the Navigation Acts listed colonial products that could be shipped only to England or to other English colonies. While these regulations prevented Chesapeake planters from shipping their tobacco directly to the European continent, they interfered less with the commerce of New England and the middle colonies, whose principal exports—fish, lumber, and flour—could legally be sent directly to their most important markets in the West Indies.

By the end of the seventeenth century, colonial commerce was defined by regulations that subjected merchants and shippers to royal supervision and gave them access to markets throughout the English empire. In addition, colonial commerce received protection from the English navy. By 1700, colonial goods (including those from the West Indies) accounted for one-fifth of all English imports and for two-thirds of all goods re-exported from England to the European continent. In turn, the colonies absorbed more than one-tenth of English exports. The commercial regulations gave economic value to England’s proprietorship of the American colonies.