Foreign relations
During his tenure as viceroy, Zúñiga was faced the issue of the British colonial settlement at Laguna de Términos (in present-day Campeche). This site had been occupied almost continuously since 1663 by English-speaking buccaneers and colonists who harvested tropical timbers in violation of Spanish law. In 1714 alone, 150 British merchant ships transported logwood from the settlement for sale in American and European markets; in the same year, the British maintained a garrison of 1,000 men, 16 fortifications, six men-of-war, four brigantines and six sloops in Laguna de Términos in support of the settlement's logging activities.
In 1716, Zúñiga sent a Spanish fleet from Veracruz, under the command of Alonso Felipe de Andrade, to liquidate the British settlement. They took the British by surprise, and were successful in capturing the settlement. The valuable property captured by the Spanish from the settlement, including harvested timbers, amply repaid the costs of the expedition. A Spanish garrison was established on Laguna de Términos, and Andrade was named governor. The garrison fought off an attack from a British force of 335 men on July 16, 1717, but Andrade was killed in action during the fighting. His descendants were honored with the hereditary position of captain of dragoons.
Zúñiga also advanced the Spanish colonization of Texas and established four advance posts in the region to expel the French presence in the region. In addition he conquered Nayarit and reconstructed the fortifications in Florida. On May 19, 1719, shortly after the declaration of war between France and Spain, the French disembarked in Pensacola. They were easily defeated and forced to surrender. However, the missionaries and soldiers in Texas returned to Coahuila, fearing French advances. The viceroy sent the Marquis of San Miguel de Aguayo and 500 militiamen to expel the French from the Bay of Espíritu Santo, where they were established. Aguayo was named governor of Florida and Texas.
Zúñiga also worked to dislodge the French from Española, where they were well established, and the Danish from the Virgin Islands.
On December 21, 1720, the system of convoys was established to transport tribute and merchandise to Spain. On that date a fleet of merchant ships escorted by ships of war sailed from Veracruz to the Canary Islands. From the Canaries, another fleet escorted the merchant ships to Seville.