Prussian Customs Union

PRUSSIAN CUSTOMS UNION:

• previously the 39 states in Germany in 1815 had to look after thier own economy
• there were countless custom barriers and tariffs which heavily restricted trade
• there were also different currencies which made things even more difficult
• in 1818 the Prussian Customs Union was set up which got rid of the many customs barriers and created just one tariff was to be placed on Prussia's borders
• however, the PCU had a low customs tariff which surprised a lot of the Rhineland industrialists because they wanted their goods to be protected against foreign trade which meant a high tariff
• the PCU decided not to have a high tariff as it encouraged smuggling
• a new custom duty was introduced on raw materials to protect the products against foreign competition
• the PCU looked at extending their free trade within the rest…