Triangular Trade

Triangular trade or triangle trade is a historical term indicating trade among three ports or regions. Triangular trade usually evolves when a region has export commodities that are not required in the region from which its major imports come. Triangular trade thus provides a method for rectifying trade imbalances between the above regions.

Historically the particular routes were also shaped by the powerful influence of winds and currents during the age of sail. For example, from the main trading nations of Western Europe it was much easier to sail westwards after first going south of 30 N latitude and reaching the so-called "trade winds"; thus arriving in the Caribbean rather than going straight west to the North American mainland. Returning from North America, it is easiest to follow the Gulf Stream in a northeasterly direction using the westerlies. A similar triangle to this, called the volta do mar was already being used by the Portuguese, before Christopher Columbus' voyage, to sail to the Canary Islands and the Azores. Columbus simply expanded the triangle outwards, and his route became the main way for Europeans to reach, and return from, the Americas.

The best-known triangular trading system is the transatlantic slave trade, that operated from the late 16th to early 19th centuries, carrying slaves, cash crops, and manufactured goods between West Africa, Caribbean or American colonies and the European colonial powers, with the northern colonies of British North America, especially New England, sometimes taking over the role of Europe. The use of African slaves was fundamental to growing colonial cash crops, which were exported to Europe. European goods, in turn, were used to purchase African slaves, who were then brought on the sea lane west from Africa to the Americas, the so-called Middle Passage.

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