Background
By 1806, Napoleon was master of continental Europe effectively locking Great Britain out of the continent. However, the defeat of the French and Spanish navies at the Battle of Trafalgar (1805) ended any thoughts of an invasion of Great Britain. Napoleon, aware of British commercial strength, thus resorted to a policy of economic warfare, in what became known as the Continental System.
The Berlin Decree of 1806 forbade French, allied or neutral ships trading with Britain. By this means Napoleon hoped to destroy British trade, disrupt its growing industrial expansion and diminish its credit.
Great Britain responded with the Orders in Council of 1807 issued 11 November 1807. These forbade French trade with the United Kingdom, its allies, or neutrals, and instructed the Royal Navy to blockade French and allied ports.
Napoleon retaliated with the Milan Decree of 1807, which declared that all neutral shipping using British ports, or paying British tariffs, were to be regarded as British and seized.
Read more about this topic: Orders In Council (1807)
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