Steuerverein
The Steuerverein, or Tax Union, was formed in 1834 as a customs alliance between the Duchy of Brunswick and the Kingdom of Hanover, and then extended to include Oldenburg in 1836. Its goal was to create free internal trade with a shared external tariff, while salt remained outside the agreement.
Earlier attempts at a north‑German customs union began in 1830 with the Einbeck Treaty, involving Hanover, the Electorate of Hesse, Oldenburg, and Brunswick. It promised tariff‑free trade and a common customs administration, but disagreements over the external tariff and salt caused it not to take effect. Electoral Hesse then joined the Prussian‑Hessian Customs Union instead. A new effort between Hanover and Brunswick began in 1835, establishing internal tariff freedom, a common external tariff, and a shared customs administration. External rates were set lower than those of the German Customs Union (Zollverein), and salt remained excluded. The Steuerverein was not aimed at opposing the Zollverein but at protecting the local population from the higher Zollverein external duties on everyday goods, especially colonial products.
In 1837 a convention between the Zollverein and Steuerverein reduced Zollverein duties on many Steuerverein imports and the Steuerverein agreed to tighten its borders to stop smuggling. Some areas did not belong to the Steuerverein, such as parts of Oldenburg, the Duchy of Birkenfeld, the Principality of Lübeck, some Brunswick and Hanover exclaves, and some Prussian exclaves. Schaumburg-Lippe joined in 1838, while the County of Schaumburg remained outside. Negotiations with Prussia to bring Brunswick into the Zollverein faced a veto from Electoral Hesse. In 1841 the Prussian government added parts of the Minden district to the Steuerverein with Hanover, Oldenburg, and Brunswick’s agreement. Minden served as a convenient market for nearby farmers, so Prussia allowed duty‑free trade there to keep the market open.
Brunswick defected to the Zollverein in 1841, causing tension with Hanover. The Steuerverein and a new treaty between Hanover, Oldenburg, and Schaumburg-Lippe extended the Steuerverein’s life. In 1845 the Hartz and Weser districts of Brunswick were brought back into the Steuerverein to facilitate cross‑border trade. In 1846–1847 Hanover and then Oldenburg granted tariff concessions to the United States.
By this time the Steuerverein mainly produced agricultural goods for export, while imports were used heavily by the population. Joining the Zollverein would raise prices for many consumer goods and goods used in production, so the Steuerverein and its members hesitated to switch.
In 1850 Austria proposed merging the Austrian, Zollverein, and Steuerverein customs unions, but the Steuerverein preferred not to align with Austria, and Prussia decided to bring the Steuerverein into the Zollverein, even if it risked upsetting southern German states. Secret negotiations led to a treaty in September 1851, and Hanover joined the Zollverein on January 1, 1854, on very favorable terms. Hanover received a “praecipium” bonus to compensate for losses in transit trade and reduced duties on several items; even British iron could be imported duty‑free for a limited railway project. The move caused considerable dissatisfaction in Hanover and led to political crises. The treaty was signed by Prussia and Hanover, and Oldenburg and Schaumburg-Lippe were subsequently drawn into the Zollverein through separate agreements. The Zollverein and Steuerverein treaties were set to expire in 1853, creating a window for new negotiations, which ultimately ended the Steuerverein as a separate customs arrangement.
This page was last edited on 3 February 2026, at 05:50 (CET).