Henry VII’s foreign policy combined marriage alliances and trade agreements to secure his dynasty and stabilise England’s fragile position within European politics.

Henry VII’s Diplomatic Context

When Henry VII took the throne in 1485, England was relatively weak compared to continental powers. France, Spain, the Holy Roman Empire, and Burgundy all presented both threats and opportunities. Henry recognised that dynastic security and international recognition were best achieved through carefully negotiated marriage alliances and advantageous trade treaties.

England’s leverage depended on the triangle of Spain, Burgundy (the Habsburg Netherlands) and Scotland, with France the principal rival.

Europe around 1500 showing the principal states relevant to Henry VII’s diplomacy. England’s neighbours and partners—Spain, Scotland and the Habsburg Netherlands—are clearly delineated. The map includes other polities not discussed in the syllabus, which provide wider European context. Source

The Purpose of Marriage Alliances

Henry VII used royal marriages to:

• Strengthen England’s legitimacy through connections with established ruling houses.

• Deter Yorkist plots by tying England to powers less likely to harbour pretenders.

• Enhance England’s diplomatic weight in European affairs.

Marriage Negotiations

Henry’s strategy revolved around securing alliances through his children’s marriages.

Arthur and Catherine of Aragon

• Negotiations began in 1489, leading to the Treaty of Medina del Campo.

• Catherine, daughter of Ferdinand of Aragon and Isabella of Castile, brought prestige by linking the Tudors with Spain.

• The treaty secured military and trade agreements while arranging Catherine’s dowry.

• Arthur and Catherine married in 1501, but Arthur’s death in 1502 left Henry to renegotiate her future.

The Treaty of Medina del Campo (1489) arranged the marriage of Arthur, Prince of Wales, to Catherine of Aragon, fixed her dowry, and established mutual defence and trade terms.

Catherine of Aragon, whose marriage to Arthur underpinned Henry VII’s alliance with Spain. The portrait is a widely circulated likeness associated with c.1530 types but used here to represent the 1489 agreement’s dynastic aim. The image includes artistic detail beyond the syllabus, serving as a clear identification of the marriage partner. Source

Henry VIII and Catherine

• Henry VII sought to preserve the alliance by proposing marriage between his second son, Henry (future Henry VIII), and Catherine.

• This required papal dispensation due to the marriage’s consanguinity, which became highly significant later.

Margaret Tudor and Scotland

• Henry negotiated the marriage of his daughter Margaret Tudor to James IV of Scotland.

• This culminated in the Treaty of Perpetual Peace (1502).

• While peace was not permanent, the marriage had long-term effects, eventually uniting the Scottish and English crowns in 1603.

Mary Tudor and European Prospects

• Plans for Mary, Henry’s youngest daughter, included negotiations with the Habsburgs.

• Though not realised under Henry VII, these negotiations reflect his pursuit of continental alliances.

Trade Agreements

Henry VII recognised that economic security was as vital as dynastic security. England’s prosperity depended on the cloth trade with Burgundy, and Henry’s policies reflect this awareness.

Magnus Intercursus (1496)

• Meaning “Great Agreement,” this treaty was signed with Duke Philip of Burgundy.

• Ended the embargo Henry had imposed during Burgundy’s support for Perkin Warbeck, a pretender to the throne.

• Secured favourable trading conditions for English merchants, particularly in the cloth trade through Antwerp.

The Magnus Intercursus (1496) reopened English access to Antwerp, Europe’s leading cloth market, on favourable duties and legal protections for the Merchant Adventurers.

Annotated overlay of Antwerp’s mid-sixteenth-century port and canal system, the commercial infrastructure used by English cloth exporters. Although later than Henry VII, it accurately depicts the trading hub referenced in the syllabus. The diagram includes additional urban features not required by the syllabus but helps situate Antwerp’s market role. Source

Malus Intercursus (1506)

• Literally “Evil Agreement,” this treaty was signed after Philip of Burgundy and his wife, Joanna of Castile, were shipwrecked in England.

• Henry exploited their vulnerable position, forcing extremely favourable terms:

  • English merchants received significant privileges in Burgundy.

  • Philip recognised Henry’s dynastic legitimacy.

• However, the treaty was so one-sided it was never fully implemented, and Henry had to moderate its terms after Philip’s sudden death.

Henry’s reliance on trade diplomacy shows the intertwining of economic and political priorities. Strong trade underpinned stability, provided revenue, and reinforced international recognition.

The Link Between Marriage Alliances and Trade

Marriage diplomacy and trade agreements were interdependent in Henry’s policy:

• The Spanish alliance via Catherine of Aragon was both dynastic and economic, as Spain offered access to lucrative trading networks.

• The Burgundian treaties ensured that Yorkist pretenders found little support in the Low Countries.

• The Scottish marriage alliance sought to neutralise England’s northern border, reducing military and trade disruption.

Strategic Outcomes

Henry VII’s approach had three significant effects:

• Consolidation of Tudor legitimacy: Alliances with Spain and Scotland recognised the Tudors as equal partners.

• Improved financial security: Trade treaties increased customs revenues and stabilised England’s economy.

• Reduced Yorkist threats: Foreign powers were less likely to harbour challengers like Warbeck when tied to England by diplomacy.

The Balance of Success and Limitations

Henry VII’s marriage and trade diplomacy was broadly successful but had limitations.

• The death of Arthur undermined the Spanish alliance, and later difficulties over Catherine’s dowry strained relations.

• The Malus Intercursus was diplomatically clumsy, and Henry’s opportunism damaged trust.

• Scotland, despite the marriage alliance, remained a persistent threat, culminating in James IV’s later campaigns against England.

Nevertheless, Henry’s policies laid the groundwork for the Tudors’ international recognition. His careful combination of marriage alliances and trade agreements was essential in transforming England from a vulnerable realm into a respected European power.