Chapter 297: The Best Son-in-Law
What stood out most to the Emperor was that his nephew hadn't mentioned France's largest export—wine. In comparison, glass and fur products were the backbone of Austria's economy.
The Emperor chuckled inwardly. His young nephew still lacked experience. By including numerous items for reduced tariffs in the trade agreement, the deal looked good on paper, but none of those items could match the export value of wine.
So, he generously nodded and said, "Alright then, let's set the tariff on paper at 15% and the others at 5%. How does that sound?"
Joseph immediately countered, "You see, I've lowered the tariffs on Austrian linen to zero. Could you at least lower the tariffs on steel or chemical products a bit more?"
The Holy Roman Emperor smiled, taking a sip of his wine. "Alright, since my dear nephew insists, let's set the tariff on chemical products to zero."
Austria had some steel industry, which was even sold in large quantities to various German states. As for chemical products? Honestly, the Emperor wasn't even sure what those were—probably something like sulfuric acid, with an annual trade value of less than ten thousand florins.
Joseph put on an innocent smile befitting his youth and bowed slightly to his uncle. "You truly are a generous elder. This makes our trade agreement look much fairer."
Then, he seized the opportunity to push further. "Dear Uncle, for the sake of facilitating trade between France and Austria, perhaps we could include a clause in the agreement allowing each other's vessels free access to inland waterways. Of course, necessary inspections before entering the territory would still be allowed."
Joseph II, now physically exhausted, weakly waved his hand. "I'll seriously consider that."
Sensing the moment slipping away, Joseph quickly added, "Do you think we could extend this mutually beneficial trade agreement to the entire German region? Include Bavaria, Salzburg, Württemberg, Baden, and even Saxony, Thuringia, and Hesse in the future."
Joseph II shook his head tiredly. "They all worry that French and Austrian goods will overwhelm their markets. They probably won't be willing to join such a low-tariff agreement."
Even larger German states like Bavaria and Saxony couldn't withstand the competition from Austrian goods, let alone the smaller ones. In this era, when market economy theory was still underdeveloped, everyone set high tariffs to protect their markets.
Joseph's eyes gleamed with a cunning smile. "Then we can offer them some concessions."
The Holy Roman Emperor gathered his remaining strength to ask, "But why would we do that?"
Joseph thought to himself that it was, of course, to leverage Austria's influence over the German states, which would be much easier than France negotiating with each state individually.
But to his uncle, he said, "This could reduce their trade with Prussia. And less trade means less contact, which would be beneficial for establishing Austria's prestige in the German region. In fact, with the right negotiation strategy, Austria wouldn't lose much. Given Austria's size, even if the terms aren't entirely favorable, the country would still benefit from having a larger market as it continues to grow."
Joseph II, though extremely fatigued, suddenly brightened at these words.
He was a smart man and quickly understood his nephew's point. For small states like Thuringia and Württemberg, no industry could be so strong that it would be irreplaceable. Even if they had some leading-edge industries, their export volumes would be limited due to the small size of their countries. And for Austria, finding alternative suppliers wouldn't be difficult.
But a large nation like Austria, once it gained a leading position in any industry, could effectively dominate these small states, forcing them to accept the influx of Austrian goods.
So, instead of worrying about short-term profits, it was more important to bind these small states to Austria, expanding its market and making them dependent on Austrian goods and the Austrian market. This strategy could potentially achieve the unification of the German states—a goal that even wars hadn't been able to accomplish.
The Emperor looked at his nephew with a mixture of astonishment and admiration. This strategy couldn't have come from his sister—he knew her too well. It must have been the idea of this "God-favored" young man or some brilliant French advisor.
In reality, Joseph was simply applying the concept of economic colonization from the future. Modern great powers often group neighboring smaller nations together to form unified markets—this was no different.
What the Holy Roman Emperor didn't realize was that while he thought Austria would lead and bind the German states to itself, with France merely enjoying the benefits on the side, Joseph saw Austria no differently from Thuringia or Württemberg—just another market for French industrial goods.
Eventually, Joseph II could no longer stay awake. He signaled for his brother Leopold II to continue discussing the trade agreement with his nephew, while he retired to his bedroom to rest.
By the time the banquet ended, Leopold II and Joseph had already delved into the details of the trade agreement.
Leopold, who was much more energetic than his brother, thought through every foreseeable scenario where French goods could potentially impact Austria and made sure to preemptively address them.
What he couldn't foresee was the rapid development of French industry, which would soon turn nearly every valuable industry into a French stronghold.
As Leopold II and Joseph left the banquet hall, surrounded by nobles, heading towards the music hall, Maria Ludovica discreetly signaled to a nearby noble and then quickened her pace to catch up to Joseph.
Standing beside him, she turned her head slightly and said, "Dear Joseph, the way the Emperor looked at you just now was full of admiration and approval. He's never shown so much fondness, not even for Clementine."
Joseph was momentarily stunned and quickly replied, "Cousin Clementine is the kindest and most charming lady. I've heard that she's the Emperor's favorite niece."
Maria Ludovica covered her mouth with her fan, laughing softly. "Clementine is a sweet child, but she does have a flaw—she can be very jealous and possessive of those she loves."
She suddenly lowered her voice, "So, if you don't have any other mistresses in the future—like your father, for instance—I think she would be very happy."
Joseph was caught off guard and started sweating a bit, hastily changing the subject. "Ahem, I heard that Mr. Mozart will be performing tonight?"
(End of Chapter)
Friends, if you want to read chapters in advance, subscribe to my patreon.