Colonial Trade

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Colonial Trade


trade between the imperialist states and the colonial and dependent countries; one of the forms of exploitation of the latter. Colonial trade originated in the period of great geographic discoveries (the mid-15th through the mid-17th century).

During the 17th and 18th centuries trade was usually regulated by noneconomic, administrative methods. Outright robbery coexisted with normative enactments that restricted the colonies’ commercial dealings with the outside world and consolidated the colonial companies’ monopoly rights over trade with the colonies. Colonial trade was one of the sources of the primitive accumulation of capital. Under these conditions, the chief components of colonial trade were the slave trade and the sale of poor-quality wares at high prices in the colonies. The outright pillage of the colonies, as well as the exploitation of the colonial countries by means of colonial trade, through which unequal exchange was effected, played a greater and greater role as large-scale capitalist industry developed. The colonies were gradually drawn into the world capitalist economy and turned into agricultural and raw material appendages of the capitalist countries, that is, into markets for their products and sources of raw materials for capitalist industry. Thus, 65 times more cotton cloth was exported to India in 1835 than in 1814. In 1860, British weavers exported twice as much cloth to India than to Europe and the USA.

During the period of imperialism, the conditions for colonial trade were secured primarily by the military-political suppression of the colonial and dependent countries. Administrative methods of regulating colonial trade were combined with such economic methods as imperial preferences, minimum customs duties or complete exemption from them, and favorable prices that often exceeded the world average. Quantitative restrictions (quotas) on imports from third countries and currency restrictions were applied, particularly after World War II (1939–15), for the purpose of isolating colonies from world trade. Unequal exchange and the less-than-equal status of the colonial and dependent countries in the international capitalist division of labor remained characteristic features of colonial trade. During the period of imperialism colonial trade became one of the chief means by which the monopolies obtained monopolistic superprofits through the exploitation of colonial peoples. Colonial trade strengthened the customs union (an outgrowth of the colonial empires), ensured the leading role of the metropolitan country in the commercial turnover of its colonial possessions, and consolidated the backwardness and monocultural specialization of the colonies. The exports of the colonies were dominated by two or three goods essential to the imperialist countries, whereas their imports were dominated by a broad range of industrial goods and even foodstuffs. This retarded the development of local production in the colonies.

Since the collapse of the colonial system of imperialism, colonial trade has been transformed. The newly independent countries are seeking the abolition of the most one-sided conditions of colonial trade, expanding their mutual trade, and developing mutually advantageous, equal ties with socialist states. They are creating national firms for foreign trade and instituting state monopolies on the import of certain goods, in order to protect the national economy against foreign competition. There has been a noticeable decline in trade preferences favoring the former metropolitan country. In their struggle for equal status in foreign trade the developing countries meet the resistance of the imperialist states, which, applying neocolonialist methods, attempt to keep the former colonies within their spheres of influence. This is the purpose of state-monopoly regulation of foreign trade with the developing countries. In adapting to the new situation, the imperialist countries have been forced to make certain trade concessions in order to strengthen their position in the economies of the newly independent states. The principle of privileges carried over from the colonial period is an obstacle to the elimination of the colonial structure of the foreign trade of the new states. As long as they remain in the world capitalist economic system, the newly independent countries continue to be subject to exploitation by foreign monopoly capital in trade.


Rymalov, V. V. Raspad kolonial’noi sistemy i mirovoe kapitalisticheskoe khoziaistvo. Moscow, 1966.
Obminskii, E. E. Torgovaia politika razvivaiushchikhsia stran. Moscow, 1967.


References in periodicals archive ?
She also noted that Morocco's accession to the Economic Community of West African States (ECOWAS), which represents a rapidly growing market of 360 million people, will enable the country to play a key role in triangular trade.
FACT: The Triangular Trade saw textiles taken to Africa in exchange for slaves who were taken to the Caribbean and traded for sugar which was exported.
Traders used African cloth in the triangular trade of the 17th and 19th centuries.
It quoted Andrey Lugansky, Russia's trade representative in Iran, as saying Russia was proposing a kind of triangular trade with Russia tapping the huge sums of money Iran has in countries to which it sells oil but is unable to remove funds because of US banking restrictions.
Among the topics are Williams as a man of culture, the challenges of Caribbean integration, Capitalism and Slavery revisited: the "Williams Thesis" in Atlantic perspectives, the triangular trade from a global perspective, and the historiography of Brazilian slavery.
However, if triangular trade (Brazil-UAE-Oman) is considered, the amount will be higher," Rafael Magno Maciel Costa e Brito, vice consul and commercial attache at the Embassy of Brazil, said in an exclusive interview with the Times of Oman.
This can provide the context for learners to consider the causes of slavery and Wales' connection with the triangular trade route and the consequences of slavery for Welsh trade," the spokesman said.
The British East India Company deliberately imposed a triangular trade arrangement whereby Britain sold manufactured goods to India in order to buy opium, which it subsequently sold in China to finance the purchase of tea and other products.
In portraying the spectrum of maritime activities of risk-taking Kachchhi businessmen during the 19th century, independent Indian researcher Goswami focuses on the triangular trade networks that developed between the Kachchh district in western India, the city of Muscat in Oman, and the island of Zanzibar off the east coast of Africa.
Dr Yosef Ben-Jochannan also reminds us that Spanish, Portuguese or Oriental Jews were instrumental in the early colonial slave and triangular trade.
These duties, adds the EBB, are regularly circumvented either through triangular trade or false declarations on the nature of goods.
DGBAS attributed the growing excess savings to the increasing triangular trade, which means orders received at home and produced overseas.