The Treaty of Tordesillas, signed in 1494 between Spain and Portugal, was significant because it divided the newly discovered lands outside Europe between the two powers along a meridian west of the Cape Verde islands. This agreement aimed to resolve disputes over newly explored territories, particularly in the Americas. Spain was granted lands west of the line, while Portugal received territories to the east. The treaty effectively shaped colonial empires and influenced global trade routes, while also impacting the indigenous populations whose lands were claimed by these European powers, leading to significant cultural and demographic changes.