The recently concluded international conference on the “Galleon and the Making of the Pacific” organized by the Intramuros Administration reminds us of when Manila was a major center of world trade.

Goods from all over Asia were brought to Manila, from where the Nao de China brought them across the Pacific to Acapulco, eventually reaching the rest of the Americas and Europe.  The trade route lasted from 1565 to 1815 at the beginning of the Mexican Revolution against Spain.  Each year, up to three (3) ships (called nao or galleon) sailed from Manila, adding up to 350-400 crossings in each direction.

Silk, porcelain and spices (cloves, cinnamon and pepper) from China, Japan, India, the Moluccas, were the largest exports.  New World silver coin and bullion were received in return, but promptly went to pay the Asian suppliers.

Global trade data are incomplete, thought trans-Pacific trade was about equal to the combined volume of the Portuguese Estado de Indias, Dutch East India Company and English East India Company.  It is said that the Galleon Trade was the world’s economic engine particularly during the 1600s.

The commercial benefits of the Nao de China did not much affect the local economy and the native population, as Manila was little more than a trading post.  Indios mainly logged and hauled timber down from the forests, built and crewed the galleons. 

Spices do not grow well in the Philippines and foreign demand was only for few local products, e.g., cotton cloth from the Ilocos and objets d’art (ivory and wood carvings, lacquer ware, etc.). At least initially, the need for skilled labor — carvers, carpenters, masons, printers, and other artisans needed for both local and export requirements — was filled by Chinese artisans. 

Shipping space was exclusive to the resident Spanish community and profits accrued to the locals entitled to trade and to the foreign merchants who supplied trade goods.  It is true that risks were high due to storms, piracy, politics, reliability of supply, competition, government regulation.  Nevertheless, return on investment was impressive and focus of Spanish colonizers was on trading.

Few Spaniards settled down permanently and little was invested on Philippine agriculture or manufacture.

At the same time, however, tax and other revenues generated by the trade financed not only the government machinery, but also public and ecclesiastical structures, bridges, forts, other infrastructure.

The galleons also brought in plants indigenous to the New World that in time became important to Philippine life (e.g., tobacco, maize, cacao, coffee, cassava, peanuts, chili pepper, beans, and tomato).  Similarly, mangoes and other Asian plants went East.

Manila was a key center of world trade for 250 years.  Towards the end, however, trade began to decline with falling demand for traditional export products; greater competition from British, Dutch and other traders; changing political and economic conditions; depletion of the silver mines in the New World; the Industrial Revolution and cheaper European substitutes. 

The final voyage of the Nao de China marked the beginning of the Philippines’ quest for economic self-reliance.

Comments are cordially invited, addressed to walalang@mb.com.ph.