Chapter 307: The Art of Negotiation
Trade agreements encompassed every imaginable aspect; even a simple draft amounted to a thick stack of documents.
It took the negotiating representatives from various nations an entire morning just to review the general contents—and that was only because Austria had already informed them of the broad framework of the agreement. Otherwise, they likely would have spent the entire day on it.
However, once everyone scrutinized the terms, surprised expressions appeared on their faces, and they began whispering among themselves. "It says here we can maintain a 60% tariff on French wine imports, and a 38% tariff on Austrian iron products. These terms seem... acceptable."
"We can even impose an 80% tariff on French paper. That's not what I expected at all."
"Aside from French textiles, where tariffs must align with Britain's, the other conditions aren't particularly harsh..."
"In fact... they're quite reasonable. Austria is only imposing a 10% tariff on most goods exported to it from Württemberg."
"It's the same for me; our goods can enter Austria and France with very low tariffs."
Soon, it was lunchtime.
On the way to the dining hall, Bomenthal, the Bavarian Secretary of State, pulled aside several trade representatives from smaller nations, discussing in hushed tones: "While it appears on the surface that the agreement terms proposed by Austria are largely in their favor, our industrial competitiveness is far inferior to that of France and Austria, especially France.
Count Winzengerode, the plenipotentiary representative of Württemberg, nodded and looked at him. "Then what do you propose we do?"
"This trade agreement is an excellent opportunity," Bomenthal said, scanning the group. "It allows our goods to enter the vast markets of France and Austria, but we must unite and negotiate for more favorable terms.
"Specifically, we must remain unified when discussing the exact tariff amounts. Oh, and of course, Bavaria will also make concessions to your nations, so please rest assured."
The other representatives all nodded in agreement. Indeed, as Bomenthal stated, according to the draft, the tariffs imposed by France and Austria on their goods were almost negligible, opening up the possibility for their products to enter the French and Austrian markets—something that had been extremely difficult before.
Therefore, the focus of subsequent negotiations would be on the maximum tariffs they could impose on France and Austria. After all, these smaller nations could only rely on tariffs to protect their markets when facing the highly competitive goods of larger powers.
At two-thirty in the afternoon, the trade negotiations resumed.
Count Winzengerode of Württemberg was the first to rise, addressing the French Minister of Commerce: "Monsieur Bailly, regarding the iron products your nation exports to Württemberg, I believe a 12% tariff is genuinely too low. As you know, Württemberg has numerous iron foundries, and we need to provide them with some protection. Perhaps the tariff on iron products could be raised to around 35%."
Hearing this, representatives from Bavaria and other nations immediately followed suit. "Bavaria hopes to raise the tariff on French steel to 30%."
"Salzburg also hopes to raise it to 30%..."
Monsieur Bailly then rose and uttered some platitudes, essentially saying that France also valued the protection of their industries, but he showed no sign of conceding on the tariff percentages.
Seeing the stalemate, Count Winzengerode was about to threaten to withdraw from negotiations when Monsieur Bailly gestured to a young official behind him: "Monsieur Buonaparte, please present the trade data for French and Württemberg iron products to Count Winzengerode."
"Yes, sir."
Joseph Buonaparte immediately pulled out several pages of documents, politely placing them on the table in front of the Württemberg representative, and explained thoughtfully: "Count, as you can see, over the past five years, France's average annual export of iron products to Württemberg has been only 110,000 Livres. The average price per item is 16 Sous.
"During the same period, the average price of locally produced iron goods in Württemberg was only 14.8 Sous. In other words, French iron products have virtually no competitive edge in Württemberg."
Before technological innovation, iron smelting techniques across European nations were all at a similar level. France, with its less abundant iron resources, held no advantage over smaller countries.
Count Winzengerode was momentarily stunned. He had no concept of such detailed figures and genuinely wondered where the French had compiled them from.
In reality, ever since Joseph had prepared to expand into the German states' markets, he had dispatched people to investigate the industrial and trade situations of various nations, spending hundreds of thousands of Livres in expenses.
Therefore, this draft trade agreement was by no means a shot in the dark; he could ensure that the tariff amounts listed were acceptable to all nations.
In later eras, extensive commercial research would precede trade negotiations. However, in the 18th century, people still operated largely by experience, lacking any awareness of such practices, and were consequently bound to be on the defensive during negotiations.
Joseph Buonaparte smiled and pointed to the next page. "You see, this is a survey of 200 Württemberg residents' intentions, and only seven people expressed a willingness to purchase French iron products. Therefore, you have no need to worry about your local iron foundries being threatened."
Count Winzengerode looked at the survey questionnaires in astonishment. They bore the signatures of the respondents, so they were likely not fabricated.
For a moment, he didn't know how to refute it and could only sit down, disheartened.
Immediately after, the Bavarians raised objections to the tariffs on French chemical products.
Monsieur Bailly followed suit, having the official responsible for Bavarian commercial research present detailed data directly to Count Bomenthal, using a wealth of evidence to prove that a 15% tariff was sufficient to protect their chemical industry.
In this manner, the negotiations continued until the third day. The French side presented their case with data and validated it with survey questionnaires, largely ensuring that tariffs on French goods from other nations saw no major changes.
In contrast, Austria, under the persistent badgering of the smaller nations, agreed to allow them to raise tariff amounts considerably.
It wasn't until the fifth day of negotiations that Monsieur Bailly, with a beaming smile, unveiled the "free transport on inland waterways" clause...
Vienna.
Schönbrunn Palace.
Joseph II frowned, looking at his brother, and asked weakly, "Are you saying that Paris has not confirmed the marriage alliance?"
Leopold II nodded, his face grim. "Antoinette's letter made no mention of an engagement. Your Majesty, you know Clémentine even resided in Paris for a year. Their actions are nothing short of an insult to the Habsburg family!"
Joseph II remained silent for a long time, then sighed deeply. "It must be that my sister made this decision considering Clémentine's young age and inability to bear children yet."
His statement was not without precedent. Louis XV had even been engaged to a Spanish princess at one point, but because she was too young to bear an heir, she was ultimately sent back to Spain.
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