The Navigation Act 1651 is passed on October 9, 1651, by the Rump Parliament led by Oliver Cromwell. It authorises the Commonwealth of England to regulate trade within the colonies. It reinforces a long-standing principle of government policy that English trade should be carried in English vessels. The Act is a reaction to the failure of the English diplomatic mission led by Oliver St. John and Walter Strickland to The Hague seeking a political union of the Commonwealth with the Republic of the Seven United Netherlands, after the States of Holland had made some cautious overtures to Cromwell to counter the monarchical aspirations of stadtholder William II, Prince of Orange.

The stadtholder dies suddenly, however, and the States are now embarrassed by Cromwell taking the idea too seriously. The English propose the joint conquest of all remaining Spanish and Portuguese possessions. England would take America and the Dutch would take Africa and Asia. But the Dutch have just ended their war with Spain and already taken over most Portuguese colonies in Asia, so they see little advantage in this grandiose scheme and propose a free trade agreement as an alternative to a full political union. This again is unacceptable to the British, who would be unable to compete on such a level playing field, and is seen by them as a deliberate affront.

The Act bans foreign ships from transporting goods from outside Europe to England or its colonies, and bans third-party countries’ ships from transporting goods from a country elsewhere in Europe to England. These rules specifically target the Dutch, who control much of Europe’s international trade and even much of England’s coastal shipping. It excludes the Dutch from essentially all trade with England, as the Dutch economy is competitive with, not complementary to the English, and the two countries therefore exchange few commodities. This Anglo-Dutch trade, however, constitutes only a small fraction of total Dutch trade flows.

The Act is often mentioned as a major cause of the First Anglo-Dutch War, though it is only part of a larger British policy to engage in war after the negotiations have failed. The English naval victories in 1653 (the Battle of Portland, the Battle of the Gabbard and the Battle of Scheveningen) show the supremacy of the Commonwealth navy in home waters. However, farther afield the Dutch predominate and are able to close down English commerce in the Baltic and the Mediterranean. Both countries hold each other in a stifling embrace.

The Treaty of Westminster (1654) ends the impasse. The Dutch fail to have the Act repealed or amended, but it seems to have had relatively little influence on their trade. The Act offers England only limited solace. It cannot limit the deterioration of England’s overseas trading position, except in the cases where England herself is the principal consumer, such as the Canary Islands wine trade and the trade in Puglian olive oil. In the trade with the West Indies, the Dutch keep up a flourishing “smuggling” trade, thanks to the preference of English planters for Dutch import goods and the better deal the Dutch offer in the sugar trade. The Dutch colony of New Netherland offers a loophole through intercolonial trade wide enough to drive a shipload of Virginia tobacco through.

The 1651 Act, like other laws of the Commonwealth period, is declared void on the Restoration of Charles II of England, having been passed by “usurping powers.” Parliament therefore passes new legislation. This is generally referred to as the “Navigation Acts,” and, with some amendments, remains in force for nearly two centuries.