History of free trade zones
Allan Adler
Jacques Droz, and just learned that the Prussians developed a kind
of free trade zone (maybe not exactly free) called the Customs Union,
or Zollverein. In the process, they absorbed other such associations
that had sprung up in reaction to the Zollverein. Droz doesn't go into
much detail about how they worked, but I have the impression that they
involved regulating borders and tariffs, rather than eliminating tariffs.
Anyway, this is the first time I've heard of any antecedents of the
contemporary free trade zones, such as NAFTA and the EU, other than
the one that, in effect, existed between the states of the US under
the Constitution. I'm not sure whether the Zollverein should be compared
to the European Union or to the World Trade Organization. At any rate, now
that I have seen one antecedent, I'm curious to know where I might read
about the history of such associations between groups of countries.
--
Ignorantly,
Allan Adler <a...@zurich.csail.mit.edu>
* Disclaimer: I am a guest and *not* a member of the MIT CSAIL. My actions and
* comments do not reflect in any way on MIT. Also, I am nowhere near Boston.
Rich Rostrom
>Anyway, this is the first time I've heard of any antecedents of the
>contemporary free trade zones, such as NAFTA and the EU, other than
>the one that, in effect, existed between the states of the US under
>the Constitution. I'm not sure whether the Zollverein should be compared
>to the European Union or to the World Trade Organization. At any rate, now
>that I have seen one antecedent, I'm curious to know where I might read
>about the history of such associations between groups of countries.
In "Ancien Regime" Europe, there were customs
collectors at every national border and even
within nations (see "octroi").
In the 1800s, economists argued that these
impositions were a wasteful burden, spawning
bureaucracy and corruption.
It was believed that elimination of such
impositions would cost relatively little
net revenue, and that increased commerce
would more than compensate.
In Germany the problem was severe because
there were dozens of tiny countries.
Many of these countries were not contiguous -
to get from some parts of Prussia or Hanover
to other parts, one had to cross boundaries
and pay tolls.
As the century proceeded and steamboat,
rail, and canal traffic expanded, the
benefits of ending tariffs became more
obvious.
This was not inconsistent with national
or regional protectionism: the Zollverein
was intended to promote commerce within
Germany while excluding foreign imports.
--
| Decapitation is, in most instances, associated |
| with a decline in IQ. |
| |
| -- Professor Raymond Tallis |
Robert Grumbine
Allan Adler <a...@nestle.csail.mit.edu> wrote:
>I'm reading the book, "Europe Between Revolutions, 1815-1848", by
>Jacques Droz, and just learned that the Prussians developed a kind
>of free trade zone (maybe not exactly free) called the Customs Union,
>or Zollverein. In the process, they absorbed other such associations
>that had sprung up in reaction to the Zollverein. Droz doesn't go into
>much detail about how they worked, but I have the impression that they
>involved regulating borders and tariffs, rather than eliminating tariffs.
>
>Anyway, this is the first time I've heard of any antecedents of the
>contemporary free trade zones, such as NAFTA and the EU, other than
>the one that, in effect, existed between the states of the US under
>the Constitution. I'm not sure whether the Zollverein should be compared
>to the European Union or to the World Trade Organization. At any rate, now
>that I have seen one antecedent, I'm curious to know where I might read
>about the history of such associations between groups of countries.
Might be a little different than you're looking, but go for the
Hanseatic League. Not so much between countries as cities; in the
middle ages.
--
Robert Grumbine http://www.radix.net/~bobg/ Science faqs and amateur activities notes and links.
Sagredo (Galileo Galilei) "You present these recondite matters with too much
evidence and ease; this great facility makes them less appreciated than they
would be had they been presented in a more abstruse manner." Two New Sciences
Jack Cerf
Austria; its border (the Zollgrenze) ultimately became the border of
Bismarck's German Reich after 1871. This was no accident. Prussia
was the largest and economically strongest of the member states, and
the effect of the customs union was to integrate the members'
economies with Prussia's. Like some modern partisans of the EU, the
liberal nationalists of mid 19th century Germany hoped that economic
integration would ultimately lead to political integration; as it
turned out, Bismarck handled that process rather differently.