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1. COMMERCE: BETWEEN OTTOMAN EMPIRE AND EUROPE

   INTRODUCTION In some ways, then, Ottoman and other European communities were hostile to each other. In other ways, however, the two civilizations were more symbiotic, seeming almost to converge in some arenas. They are most visible, perhaps, in the economic sphere, in which trade within the Mediterranean basin served to bind the two worlds, operating not only through the “spices” that Europeans coveted and long could gain only from Ottoman cities, but also, and especially after the sixteenth century, through bulkier commodities such as dried fruits, cottons, and grains.
2. VASCO DA GAMA The economic structure of the Empire was defined by its geopolitical structure. The Ottoman Empire stood between the West and the East, thus blocking the land route eastward and forcing Spanish and Portuguese navigators to set sail in search of a new route to the Orient. The Empire controlled the spice route that Marco Polo once used. When Vasco da Gama bypassed Ottoman controlled routes and established direct trade links with India in 1498, and Christopher Columbus first journeyed to the Bahamas in 1492, the Ottoman Empire was at its zenith, an economic power that extended over three continents.
3. Ottoman government deliberately pursued a policy for the development of Bursa, Adrianople and Constantinople, successive Ottoman capitals, into major commercial and industrial centres, considering that merchants and artisans were indispensable in creating a new metropolis.To this end, Mehmed and his successor Bayezid, also encouraged and welcomed migration of the Jews from different parts of Europe, who were settled in Istanbul and other port cities like Salonica. In many places in Europe, Jews were suffering persecution at the hands of their Christian counterparts. The tolerance displayed by the Turks was welcomed by the immigrants.
4. 16th century The city of Istanbul was the crossroads of trade between the East and West. Caravans ans ships carried silk, tea,spices and porcelain. From the Black Sea and southern Russian came ships with furs,grain and amber and from Europe mirrors and drugs. Ships from Venice and Genoa carried goods to Europe. The Ottomans inherited the Seljuk caravan stops ( kervansaray ) which were about 25 miles apart on the main trade routes of the empire to protect the caravan trade and the Ottoman navy delt with pirates in its waters. The early Ottoman allies, the French were the first Europeans to be granted trade rights in 1534. The English were allowed in 1567 and in 1581 Queen Elizabeth I granted the Turkey Company an exclusive charter to trade with the Ottoman Empire.
5. One of the most important events of 16th. Century is “Capitulations” which were contracts between the Ottoman Empire and European powers, particularly France. Turkish capitulations, or ahdnames, were generally bilateral acts whereby definite arrangements were entered into by each contracting party towards the other, not mere concessions.[1] The Turkish Capitulations were grants made by successive Sultans to Christian nations, conferring rights and privileges in favour of their subjects resident or trading in the Ottoman dominions, following the policy towards European states of the Byzantine Empire.
6. 17th century In 1600, the Ottoman empire was an important market for Europeans, by 1900 it was much less important. Internal trade was more important than international A lot of schools for the Christians’ children were built by the Ottoman Government. Therefore the higher educational levels of the Christians allowed them to play a large role in the economy. -Coffee became associated with the Ottomans for Europeans. European merchants in Istanbul brought coffee to Europe and there were coffee houses in London by the 1650s.
7. 18th century Exports of cotton alone doubled between 1750 and 1789 with Europe. - While cotton exports to France and England doubled between the late 17th and late 18th centuries, exports of semi-processed goods to northwest Europe also increased - The balance of trade however moved against the Ottomans from the 18th century onwards. They would re-export high value luxury goods, mainly silks from the Far East and exported many of its own goods -Through the 18th century, exports moved to unprocessed goods whilst at the same time commodities were imported from European colonies.
8. 19th century During the 19th century, new technologies radically transformed both travel and communications. Through the invention of the steam engine in Britain, water and land transport revolutionised the conduct of trade and commerce. The steam ship meant journeys became predictable, times shrank and large volumes of goods could be carried more cheaply. Quataert cites the Istanbul-Venice route, a main trade artery, taking anything from fifteen to eighty-one days by sail ship, was reduced to ten days by the steam ship. Sail ships would carry 50 to 100 tonnes. In contrast, steamships could now carry 1,000 tonnes.
9. the Suez Canal With the advent of the steam ship formerly intraversable routes opened up. Rivers that carried cargoes only in one direction could now be traversed both ways bringing innumerable benefits to certain regions. New routes like the Suez Canal were created, prompted by steamships, changing trade demographics across the Near East as trade was rerouted. Quataert’s research shows that the volume of trade began to rise over the course of the 19th century. By 1900 sailboats accounted for just 5 percent of ships visiting the Istanbul. However, this 5 percent was greater in number than any year of the 19th century. In 1873 Istanbul handled 4.5 million tons of shipping – this was 10 million tons by 1900. The development of larger ships accelerated the growth of port cities with deep harbours in order to accommodate them. Europeans however owned 90 percent of commercial shipping operating in Ottoman waters.
10. The principal industries of the early empire were geared toward producing war materials and brought prosperity. So the Ottoman Empire bought lots of material from Europe. . Industrial Manufacturing emerged in the 1850s with the production of Oriental carpets for domestic and international sale. 19th century trade increased multi-fold, however exports remained similar to 18th century levels. Foodstuffs and raw materials were the focus with carpets and raw silk appearing in the 1850s. Foreign trade, a minor part of the Ottoman economy, became slightly more important towards the end of the 19th century with the rise of protectionism in Europe and producers looking to new markets --Europeans owned 90 percent of commercial shipping operating in Ottoman waters. (in 19th century)
11. 20th century In 1911, of the 654 wholesale companies in Istanbul, 528 were owned by ethnic Greeks. --The two industries alone employed 100,000 persons in 1914 two-thirds in carpet-making for European and American buyers.