In reprisals for the support formerly given by the Burgundian government to the house of York, Henry had forbidden the exportation of wool and of cloth to the Netherlands, had removed the staple from Bruges to Calais, and had withdrawn the fishing rights enjoyed by the Hollanders since the reign of Edward I.
But this state of commercial war was ruinous to both countries; and, on condition that Philip henceforth undertook not to allow any enemies of the English government to reside in his dominions, a good understanding was reached, and the _Magnus Intercursus_, which re-established something like freedom of trade between the countries, was duly signed in February, 1496.

The treaty was solemnly renewed in 1501, but shortly afterwards fresh difficulties arose concerning Yorkist refugees, and a stoppage of trade was once more threatened.

At this juncture a storm drove Philip and Juana, who had set sail in January, 1506, for Spain, to take refuge in an English harbour.

For three months they were hospitably entertained by Henry, but he did not fail to take advantage of the situation to negotiate three treaties with his unwilling guest: (1) a treaty of alliance, (2) a treaty of marriage with Philip's sister, the Archduchess Margaret, already at the age of 25 a widow for the second time, (3) a revision of the treaty of commerce of 1496, named from its unfavourable conditions, _Malus Intercursus_.

The marriage treaty came to nothing through the absolute refusal of Margaret to accept the hand of the English king.
Philip and Juana left England for Spain, April 23, to assume the government of the three kingdoms, Castile, Leon and Granada, which Juana had inherited from her mother.