Trade and Markets: Bourbon New Spain
During the eighteenth century various events coincided to modify the volume of goods exchanged through external, interregional, and intraregional trade routes in Viceregal New Spain; these events also modified the destination and composition of these goods to a large extent. Each one of these commercial sectors, although interconnected, responded to an individual dynamic that makes it impossible to establish a common rule of behavior or disentangle cause and effect. It must be recalled that although an increase in the global volume of foreign trade between the Iberian peninsula and New Spain is historically documented and has been constantly restated by historians, it is still necessary to be cautious regarding the level of this increase. Although the increasing number of ships that officially left and entered the Spanish ports may be taken as an indicator, it must not be taken as a faithful reflection of reality. On the one hand, the rise in traffic via legal channels correspond to a clear decrease in contraband; on the other hand, the volume of vessels during the century was reduced to increase speed, so more boats were required to transport the same merchandise than previously. Furthermore, when looking at data on the growing sums paid in excise duties, insurance, or any other tax relating to foreign trade, the inflationary process at the end of the eighteenth century must be taken into account; higher prices can be confused with increased trade.

This trend toward an increase in foreign trade was basically owing to an increase in international demand (the economic expansion of European economies), faster transactions, reduced transport costs (a decrease in the cost of freight and insurance), and speedier productivity (the Spanish Crown favored those manufacturing sectors orientated toward export with tax benefits).

The increased volume of foreign trade also brought a change in the interregional or intraregional areas. Official data prove that prior to the ruling on commercial liberalization in 1789, precious metals averaged 80 percent of the value of the export freight of the Viceroyalty, but dropped to 60 percent after commercial liberalization went into effect. In addition, the control of the old merchant bases, basically concentrated in the Mexican Consulate, tended to disperse, as typified by the creation of new consulates in Guadalajara, Veracruz, and Puebla. Each new region moved toward making direct links abroad while reducing local ties between provinces. As a result, some indigenous manufacturing bases entered crisis when faced with competition from European products, thereby undermining the partial integration and specialization that had been achieved up to that point.