Chapter 296: The Most Outstanding Son-in-Law
Most importantly, his nephew hadn't mentioned France's biggest export—wine.
In comparison, items like glass and fur products were pillar industries for Austria.
He chuckled inwardly, 'My young nephew still lacks experience. While adding numerous goods with reduced tariffs for France might make the trade agreement look appealing, their combined export value is nowhere near that of wine.'
So he nodded magnanimously. "Very well, let's set the tariff on paper at 15%, and the others at 5%. How does that sound?"
Joseph immediately countered, "Look, I've already reduced tariffs on Austrian linen products to zero. You could at least lower the tariffs on steel products or chemical goods a bit more."
The Holy Roman Emperor smiled, taking a sip from his wine glass. "Alright, since my dear nephew insists, we'll reduce the tariffs on chemical products to zero."
Austria still had some steel industries, even selling a significant amount to the various German states. As for chemical products? To be honest, he wasn't entirely sure what they specifically referred to, probably something like sulfuric acid. The annual trade volume for such goods probably wouldn't even reach ten thousand Florins.
Joseph put on the innocent smile befitting a young man and bowed to his uncle, "You truly are an accommodating elder. Now our trade agreement looks much fairer."
Then, he continued to press his advantage. "Dear uncle, for the convenience of Franco-Austrian trade, perhaps we could also include a clause in the agreement allowing transport vessels free access to each other's inland waterways.
Joseph II's stamina was nearly depleted. He waved a weak hand, saying, "I will give that serious consideration."
Joseph quickly seized the last opportunity, speaking rapidly. "Do you think we could extend this mutually beneficial trade agreement between France and Austria to the whole of Germany?
"Bringing in Bavaria, Salzburg, Württemberg, Baden, and other states to sign a joint trade agreement. Even Saxony, Thuringia, and Hesse could join this trade agreement in the future."
Joseph II shook his head wearily. "They all worry that Franco-Austrian goods will flood their markets. They'd likely be unwilling to join such an open-tariff agreement."
Even relatively large German states like Bavaria and Saxony struggled to resist Austrian goods, let alone the smaller ones. In an era where market economic theory was still highly undeveloped, everyone set their tariffs higher than the next.
A cunning smile flashed in Joseph's eyes. "Then we'll offer them concessions."
The Holy Roman Emperor gathered his strength for a few seconds before asking, "But why do that?"rąÑOḄěṢ
Joseph thought, 'Of course, it's to leverage Austria's influence among the German states. That's much easier than France negotiating with them one by one.'
What he told his uncle, however, was, "This can reduce their trade volume with Prussia.
"And reduced trade means reduced contact. This will have a positive impact on establishing Austria's prestige in Germany.
"In fact, as long as the negotiation strategy is appropriate, Austria won't truly suffer any losses. After all, given Austria's size, even if the agreement terms aren't overly favorable, as the nation continues to develop, Austria will ultimately benefit from a larger market."
Joseph II, who had been utterly exhausted, suddenly brightened at these words.
He was a clever man and immediately understood his nephew's meaning.
For instance, even if small states like Thuringia and Württemberg had relatively strong industries, how strong could they truly be? Even if their technology was advanced, their small size meant their export volume wouldn't be significant. And for Austria, it generally wouldn't be difficult to find other countries to replace the advantageous industries of smaller states.
But once a large nation like Austria gained a lead in any industry, smaller states would largely have to accept the fate of being flooded with goods.
Therefore, disregard short-term gains. The most important thing was to tie the smaller states to Austria, use them to expand its market, and make them dependent on Austrian goods and markets!
Perhaps the aspiration to unify Germany, which hadn't been achieved through war, could actually be realized through this method!
His gaze towards his nephew was filled with shock. 'This strategy couldn't have come from his sister; he knew her too well.'
'Was it the idea of this young "Son of Divine Favor," or some capable minister in France?'
In reality, Joseph was simply applying the concept of economic colonialism from later eras. Which of the great powers of subsequent generations didn't gather smaller nations around them to create a unified market?
What the Holy Roman Emperor hadn't realized was that he thought Austria would lead, binding the German states to itself, with France merely gaining some minor benefit. But in Joseph's eyes, Austria was no different from Thuringia or Württemberg; they all had "French industrial market" labels stuck to their foreheads.
Joseph II finally couldn't hold on any longer. He gestured for his brother Leopold II to continue discussing the trade agreement with his nephew, while he himself returned to his bedroom to rest, supported by servants.
By the time the banquet concluded, Leopold II had already discussed the finer points of the trade agreement with Joseph.
He had far more energy than his brother and consequently thought much more thoroughly, taking precautions against all foreseeable industries where France could impact Austria.
What he couldn't foresee, however, was that France's industrial development rate would soon turn almost every valuable industry into its own strength.
As Leopold II and Joseph, surrounded by a throng of nobles, left the banquet hall and headed towards the music room, Maria subtly caught the eye of the noble to Joseph's left. She then quickly stepped forward, taking the spot the noble had just vacated.
She was about Joseph's height and tilted her head, saying, "My dear, the Emperor's gaze at you just now was truly filled with admiration and satisfaction.
"Alas, he never showed such fondness for Clémentine before."
Joseph paused for a moment, then quickly said, "My cousin is the kindest and most lovely lady. I heard His Majesty's favorite junior relative is her."
Maria covered her mouth with her fan and chuckled. "Clémentine, that girl... if she has a fault, it's that she can be quite jealous sometimes, especially about those she cares for."
She suddenly lowered her voice. "So, if you don't take any other mistresses in the future—oh, just like your father—I imagine she'd be extremely happy."
Joseph froze again, surprised the topic had shifted this way. He immediately broke into a sweat and quickly changed the subject. "Ahem, is Mr. Mozart going to perform later, I hear?"
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