Chapter 854: The Iberia-Apennine Summit II
It was no wonder the assembly was so astonished.
In this era, so-called international trade agreements were mostly a matter of arbitrarily guessing tariffs or deciding on a whim which goods to ban or permit.
When disputes arose, either a major power would strong-arm a smaller nation into yielding its interests, or the two parties would simply resort to open conflict.
The previous Seine-Rhine Trade Agreement had already served as a model for such treaties, but the rules of this Common Market were a monumental leap forward in terms of sophistication and civility.
At least, in the eyes of the member states, the terms were flawless. Large and small nations were treated as equals, and there were even clauses that seemed to favor the smaller states.
For instance, there were protective provisions for the vulnerable industries of minor nations. Even the election of the arbitration committee followed a one-member-one-vote rule, meaning a small state like Modena held the same sway as France.
To decline joining such a perfect Common Market would be nothing short of a disservice to themselves!
Their reactions were exactly as Joseph had anticipated.
It was almost laughable. The WTO was a framework painstakingly crafted by the most brilliant economists and diplomats of the late twentieth century. Even nations in the information age struggled to find flaws in it, let alone these countries still navigating the early stages of industrialization.
However, in reality, these terms that appeared so fair and just to every member state were inherently unbalanced.
It was like pitting a heavyweight boxing champion against a delicate porcelain doll. Even if the rules of the match applied equally to both, could the fight ever truly be called fair?
Similarly, given France's massive scale and national power, it would utterly crush the smaller nations under the same set of rules.
The logic was simple: France could afford to invest tens of millions of francs and assemble a vast army of technicians to develop steam engines, something smaller nations could never hope to achieve. In the end, they could only stand by and watch as French steam engines dominated their markets.
Even if their technological capabilities were on par, French factories could easily recruit thousands of workers, using massive production capacity to drive down costs. Small nations stood no chance in such a competition.
Of course, for a small nation within such a vast market, they could still find their niche in low-to-mid-end industries, thereby gaining development opportunities that were previously beyond their reach.
In the end, it was a win-win situation.
Naturally, the prerequisite for establishing such a Common Market was France's absolute military influence over the region. Otherwise, even if the market were formed, other powers would eventually use cannons to teach them the true meaning of 'free trade.'
Michelangelo Abbiasso, the Doge of Genoa, had barely finished skimming the text of the agreement before he was the first to stand, his voice firm and resolute. "Genoa is willing to join the Common Market!"
For a nation like Genoa, which relied on trade for its very existence, the Common Market was like a gift from the heavens. By being the first to declare his support, he could also secure the favor of the French Crown Prince, so he did not hesitate for a moment.
The Prince of Parma, who had previously voiced concerns about the terms, was now quick to make amends. He exclaimed loudly, "Parma shall also join the Common Market! Great France shall use this agreement to bring the light of civilization and prosperity to the Apennine Peninsula!"
With those two leading the way, the other representatives followed suit, expressing their commitment one by one.
In any case, the specific negotiations regarding tariffs and market protections could be handled slowly later on. For now, it was vital to make their positions clear.
Joseph waited until all the delegates had spoken before nodding in approval. "Since everyone intends to join the Common Market, we shall hold the first committee elections tomorrow, and thereafter begin negotiations on protective tariffs as soon as possible."
He then presented an even greater surprise, gesturing toward the second document before them. "Once the Common Market agreement is signed, we shall recognize each other's patents and adhere to the same market regulations.
"This will lay the foundation for technology licensing and large-scale investment."
As expected, the eyes of the representatives immediately lit up with fervent excitement as they stared fixedly at the French Crown Prince.
Joseph turned his gaze toward the Minister of Foreign Affairs and Trade for Lucca. "For example, the Republic of Lucca could join our Textile Industry Technology Association.
"By paying a modest patent fee and membership dues, you will gain access to a complete set of automated looms.
"The association can even invest directly to help you build new factories and dispatch technicians to train your workers."
Padoan, the minister from Lucca, stared with wide eyes, his face a mask of utter disbelief.
Although Lucca was the smallest state in Italy and sat upon the coast, it had little income from maritime trade—its neighbor, Genoa, monopolized that business. Instead, its silk textile industry was remarkably prosperous.
'If we can obtain France's latest silk-weaving technology and investment, combined with the vast reach of the Common Market, wouldn't our future profits soar?!'
He stood up in a flurry of excitement, showering Joseph with endless expressions of gratitude, nearly composing a hymn of praise on the spot.
Joseph then looked toward the Count of Floridablanca from Spain. "The French Brewing Technology Association will also open its doors to Iberia. The quality of Spanish wine will experience a massive leap forward, and together with French wine, we shall capture the markets of all Europe!"
The Count was even more electrified than Padoan.
In recent years, Spanish wine had been so thoroughly suppressed by French imports that it couldn't hold its head up. It had become synonymous with the lowest end of the market; only those too destitute to afford anything else drank Spanish wine.
Now, the generous French Crown Prince was actually offering to share French brewing techniques.
This was nothing short of a divine blessing!
However, he was the representative of a major power after all. Although he repeated his thanks to Joseph several times, he remained far less sycophantic than Padoan.
Of course, Joseph was not simply playing the role of a philanthropist.
Establishing a division of labor within the industrial chain had been part of his plan from the beginning.
Whether it was silk-weaving or brewing technology, the barriers to entry were not actually that high. In another three to five years at most, other nations would be able to imitate seventy or eighty percent of the techniques anyway.
Rather than letting that happen, it was better to license the technology through official channels. This would allow him to rake in a fortune in patent fees and association dues.
At the same time, he could use patent licensing to constrain the technological advancement of other nations, ensuring they remained tethered to the low-to-mid-end of the industrial chain.
It was similar to the automotive industry in certain Eastern nations in later generations, which struggled for decades to produce high-quality gearboxes. A major reason was that all optimal gearbox designs were already patented by other countries. To produce them was to infringe. Designing a new system from scratch often led to inferior performance, as the most efficient solutions had already been claimed, leaving only the leftovers for everyone else.
Furthermore, technology transfers would strengthen the appeal and cohesion of the Common Market. That way, when Joseph made "small" requests in the future, no one would be in a position to oppose him.
Seeing the representatives locked in animated discussion, Joseph cleared his throat and continued:
"I am sure you have all noticed that for technology transfers and investments to proceed, and to facilitate large-scale transnational trade, we require a unified clearing institution.
"For instance, a large bank belonging to the Common Market that can handle trade prepayments, settlements, exchanges, and loans for all member states."
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