Zollverein

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Zollverein (German for "customs union") or German Customs Union was formed among the majority of the states of the German Confederation in 1834 during the Industrial Revolution to remove internal customs barriers, although upholding a protectionist tariff system with foreign trade partners. The main ideological contributor behind the customs union was Friedrich List, an economist holding mercantilist and protectionist views. The Zollverein totally excluded Austria because of its highly protected industry; this would later intensify Austro-Prussian conflict. The Zollverein was effectively ended in 1866 with the advent of the Austro-Prussian War; a new organization with the same name was brought about in 1867 when peace was restored.^[1]^[2] The new Zollverein was stronger, in that no individual state had a veto.

The Zollverein had been originally established by Prussia early in the 19th century. At first it included only the close neighbours of Prussia, and was seen as a way to transport goods between the two non-contiguous parts of Prussia: Eastern Prussia and Western Prussia. The greater customs union of 38 states was the fruit of a continuous effort by Prussian bureaucrats over several decades. Its gradual inception was made against the more modest efforts of the Austrian bureaucracy to establish their own customs union with neighbouring states.

Some economic historians such as Helmut Böhme use the Zollverein to dispute the general view of Bismarck as the unifier of Germany. They point out that, firstly, Prussia's economic dominance made unification inevitable. Economic dominance led to political and military control and once that was achieved unification was only a matter of time. Secondly, the Zollverein established an anti-Austrian tradition among the Prussians. Bismarck cannot be said to have revolutionized Prussian politics when the Zollverein had been working actively against Austria for about 30 years before he came along.

(1) The custom associations… form one confederation, united by a common system of trade and customs.

(4) Similar laws relative to imports, exports and transit duties shall prevail.

(6) The Customs Union guarantees freedom of trade and commerce.

(22) The amount of duties which are to become common property shall be divided among the contracting states according to the population of each state.

(33) A congress (Zollparlament), at which each of the governments of the union shall appoint a person, shall be held annualy… for the purpose of general discussion.