The Treaty of Tordesillas, signed in 1494, was significant because it divided the newly discovered lands outside Europe between Portugal and Spain. This agreement resulted from competing claims over territories in the Americas and was intended to prevent conflict between the two maritime powers. The treaty established a meridian in the Atlantic Ocean, granting to Spain territories west of the line and Portugal those to the east. It marked the beginning of European colonial empires in the Americas and influenced global trade and cultural exchanges while perpetuating colonial practices and the indigenous populations' subjugation.