The most important thing is that my nephew just omitted France’s largest export commodity—wine.
In contrast, glass and fur products, among others, are Austria’s pillar industries.
He chuckled inwardly, his young nephew still lacked experience. Although including a number of goods that would lower tariffs for France in the trade agreement would make it look better, those combined wouldn’t come close to the export value of wine.
So he nodded generously, “Then, let’s set the tariff for paper at 15%, and 5% for the other items, what do you think?”
Joseph promptly offered a bargain, “Look, I’ve already reduced the tariff on Austria’s flax products to zero, you could at least lower the tariffs on steel or chemical products a bit more.”
The Emperor of Sanctum smiled, lifted his wine glass and took a sip, “Well then, since my dear nephew says so, we’ll reduce the tariff on chemical products to zero.”
Austria still had some steel industry, even exporting a large amount to the German states. As for chemical products? To be honest, he wasn’t quite sure what they specifically referred to—probably something like sulfuric acid. The annual trade volume for those probably didn’t even reach ten thousand florins.
Joseph displayed a young man’s naive smile and bowed to his uncle, “You truly are an easy-going elder. This makes our trade agreement seem much more fair.”
Immediately afterward, he continued to push his advantage, “My dear uncle, for the convenience of Franco-Austrian trade, perhaps we could also include in the agreement a provision for free access of shipping vessels to each other’s internal river navigation.
“Oh, of course, necessary onboard inspections before transit are still permitted.”
Joseph II was nearly exhausted and waved his hand weakly, “I’ll give it serious consideration.”
Joseph seized the final opportunity, speaking rapidly, “What about extending the mutually beneficial trade agreement between France and Austria to the whole of Germany?
“Include Bavaria, Salzburg, Wurttemberg, Baden, and other states to sign a trade agreement together. Even Saxon, Thuringia, and Hesse could join this trade agreement in the future.”
Joseph II shook his head tiredly, “They all fear that the Franco-Austrian goods will crush their own markets, so they’re likely reluctant to join an agreement that removes tariffs.”
Even larger German states like Bavaria and Saxon couldn’t withstand Austrian goods, let alone the smaller states. In an era where market economy theories were still very underdeveloped, the tariffs set by everyone were exorbitantly high.
A sly smile flickered in Joseph’s eyes, “Then let’s offer them benefits.”
The Emperor of Sanctum gathered his strength for a few seconds before speaking, “But why should we do that?”
Of course, Joseph thought, it was to leverage Austria’s influence in the German states, which was much easier than France having to negotiate with each of them separately.
However, he said to his uncle, “This would allow them to reduce trade with Prussia.
“And less trade means less contact. This has a positive significance for establishing Austria’s prestige in Germany.
“In fact, with the right negotiating strategies, Austria wouldn’t really lose out. After all, with Austria’s size, even if the terms of the agreement aren’t that favorable, as the country continues to develop, Austria would still benefit from a larger market.”
Joseph II was already extremely fatigued, but a spark appeared in his eyes upon hearing the remark.
He was a clever man, and immediately understood the meaning behind his nephew’s words.
For instance, small states like Thuringia and Wurttemberg, even if they had a relatively strong industry, how strong could it be? Even if their technologies were advanced, their exports would not be substantial due to the small size of their countries. Moreover, for Austria, it was generally not difficult to find alternatives to the small states’ advantageous industries.
But for a major power like Austria, once it took the lead in an industry, small states could generally only resign themselves to being flooded with exports.
Therefore, it was not about the short-term benefits. The key was to bind the small states to oneself from the start, to use them to expand one’s own market, and to make them dependent on Austrian goods and market – that was the most critical!
Perhaps the desire to unite Germany, which could not be achieved through war, could be realized through this method!
The look he gave his nephew was filled with astonishment; this could not have been an idea conceived by his sister – he knew her too well.
Was it the brainchild of this “child blessed by God,” or perhaps the thought of a capable minister from France?
In fact, Joseph was merely applying the concept of economic colonization from future generations. Which of those great powers of later times didn’t bring their neighboring small countries into their fold, creating a unified market?
What the Emperor of Sanctum failed to realize was that he thought it was Austria taking the lead to bind the German states to itself, with France only getting to sip a bit of the soup. But in Joseph’s eyes, there was no difference between Austria, Thuringia, and Wurttemberg; they all had the label of France’s industrial market affixed to their foreheads.
Joseph II finally could no longer hold up and signaled to his brother Leopold II to continue discussing the details of the trade agreement with his nephew while he, supported by servants, returned to his bedroom to rest.
By the time the banquet ended, Leopold II had already discussed the details of the trade agreement with Joseph.
He was much more energetic than his brother and thought things through more thoroughly, preemptively countering all the foreseeable industries where France could impact Austria.
What he did not expect was that the pace of France’s industrial development would soon turn almost all valuable industries into its strengths.
After Leopold II and Joseph left the banquet hall amidst the adulation of the nobles and headed towards the music room, Maria Ludovica surreptitiously signaled to a noble on Joseph’s left, then quickly took two steps and approached the place where the latter had just stood.
She was similar in height to Joseph and, tilting her head, said, “My dear, the way His Majesty the Emperor looks at you is truly filled with admiration and satisfaction.
“Alas, he never showed so much affection for Clementine.”
Joseph was startled for a moment and hurriedly replied, “My cousin is the kindest and most lovely lady. I heard that the Emperor’s favorite relative is her.”
Ludovica covered her mouth with her fan and laughed, “Clementine, bless her, if there’s one flaw, it’s that she can sometimes get very jealous, especially concerned about the ones she likes.”
She suddenly lowered her voice, “So, if you do not take any other mistresses in the future, oh, just like your father, I think she would be very happy indeed.”
Joseph was taken aback again, not expecting the topic to turn in this direction, and began to sweat a little, hastily deflecting, “Ah, um, have you heard that Mr. Mozart will be playing later?”