ZOLLVEREIN, tsblge-rin (Ger., customs union). Any customs union between several countries, for the purpose of establishing uni form customs tariffs between imports to and ex ports from the countries within the union and countries outside, while duties between the sev eral contracting countries are reduced below the usual rate or abolished altogether. The term as generally used has reference to the German Zollverein, which was initiated in ISIS and cul minated in 1871 in the general customs union of new Empire.
The necessity of meeting English competition in manufacture induced Prussia to take the lead in a movement to suppress the burdensome tariffs between the German States. By the law of May 26, ISIS, Prussia abolished all inter nal (ist onc:. and enacted a general tariff, to be levied only at the boundaries of the kingdom. On January IS. 1828. Bavaria and Wiirttemberg agreed to adopt a single tariff system, and to divide the net proceeds of the duties in propor tion to their respective populations. A little Tel 14,1828, Prussia and lesse-Da stadt entered into a union based on the same principle. On September 24. 1828. the Aliddle German Ilandelsverein was formed by Saxony, the Saxon duchies. Hesse-Cassel. Brunswick. the minor Thuringian States. Han over. Bremen, and Frankfort. for the purpose of preventing the union of the two funnier. This Middle German rnion differed greatly from the two other unions in that it allowed ea eh of the e. otraotin;.! States to levy :;11111 duties as it (hose except on sonic enumerated articles ail iuh Were admitted free.
This movement suggested to Prussia the bold plan of uniting the three unions of the south, north, and middle into a single German Zollverein. On May 27,1829,a commercial treaty was effected between the North German and the South Ger man unions. Each granted to the other mutual free trade for products of the several States, a uniform duty of 25 per cent. on certain manu factured articles, and it was agreed that there should be a gradual approximation of both sys tems of duties. On the 22d of March, 1833,
the union of the North and the union of the South adopted a system of complete customs and commercial union, which was to go into effect January I. 1834, for a period of eight years, and might be renewed every 12 years, unless de nounced by either party to the agreement. Sax ony and the States of Thuringia united in 1833 into a Zollverein having a common tariff of export, import, and transit, and establishing free trade between the contracting States except for certain enumerated articles.
In 1834 Hanover. which hail taken an active part in the formation of the union of the Mid dle German States with Brunswick, Oldenburg, and some other States, organized a rival asso ciation to the Prussian Zollverein under the name of the Steuerverein, which fixed duties much lower than those of the Zollverein. The rivalry of the Steuerverein did not check the growth of the Zollverein. In 1835 linden and Nassau came into the union: in 1836, Frankfort: in 1841. Brunswick. which seceded from the Steuer verein; and in 1842. Luxemburg. The Zollverein concluded treaties during these years with Eng land, Holland, and Belgium.
Austria had consistently opposed the increas ing power of Prussia by trying to block every commercial union proposed by the latter Power. Prussia on its part wished to exclude Austria from any part in the proposed all-German Zoll verein to be formed by the union of the Zoll verein and the Steuerverein. Several States be came dissatisfied with the attitude of Prussia. and at length Bavaria. Saxony, Wurttemberg. and Baden made the ratification of the treaty be tween the Zollverein and the Steuerverein con tingent upon the admittance of Austria into the new customs federation. After much negotiation, during which Austria threatened to form a rival union with the States of the South. Prussia was induced to sign on the part of the Zollverein a treaty granting eertain commercial concessions to Austria. This treaty was to go into etreet Janu ary 1, 1854, for 12 years.