The Galleon Trade

When the Spaniards came to the Philippines, our ancestors were already trading with China,
Japan, Siam, India, Cambodia, Borneo and the Moluccas. The Spanish government
continued trade relations with these countries, and the Manila became the center of
commerce in the East. The Spaniards closed the ports of Manila to all countries except
Mexico. Thus, the Manila–Acapulco Trade, better known as the "Galleon Trade" was born.
The Galleon Trade was a government monopoly. Only two galleons were used: One sailed
from Acapulco to Manila with some 500,000 pesos worth of goods, spending 120 days at
sea; the other sailed from Manila to Acapulco with some 250,000 pesos worth of goods
spending 90 days at sea.

It also allowed modern, liberal ideas to enter the country, eventually inspiring the
movement for independence from Spain. And because the Spaniards were so engrossed in
making profits from the Galleon Trade, they hardly had any time to further exploit our
natural resources.
Manila became the center of commerce in the east

Basco’s Reforms
Filipino farmers and traders finally had a taste of prosperity when Governor General
Jose Basco y Vargas instituted reforms intended to free the economy from its dependence
on Chinese and Mexican trade. Basco implemented a “general economic plan” aimed at
making the Philippines self sufficient. He established the “Economic Society of Friends of the
Country”, which gave incentives to farmers for planting cotton, spices, and sugarcane;
encouraged miners to extract gold, silver, tin, and copper; and rewarded investors for
scientific discoveries they made.

Tobacco Monopoly
The tobacco industry was placed under government control during the administration of
Governor General Basco. In 1781, a tobacco monopoly was implemented in the Cagayan
Valley, Ilocos Norte, Ilocos Sur, La Union, Isabela, Abra, Nueva Ecija, and Marinduque. Each
of these provinces planted nothing but tobacco and sold their harvest only to the
government at a pre-designated price, leaving little for the farmers. No other province was
allowed to plant tobacco. The government exported the tobacco to other countries and also
part of it to the cigarette factories in Manila.

The tobacco monopoly successfully raised revenues for the colonial government and made
Philippine tobacco famous all over Asia. Continue to Secularization of Priests During the
Spanish Period.

Adv. Economic arises

Disadv. The distance between the destination was too fa. Stoped manila being an entry port
in asia. Stopped trading in other asian