Before 1818, each district in Prussia had its own customs and there were as many as 67 tariff areas in Prussia alone.
These areas stood as obstacles in the way of trade and unity and consequently Prussia could not compete with Great Britain.
On account of the long line of customs houses, there was a lot of smuggling.
In 1819, a ‘Customs Union’ called ‘Zollverein’ was formed under the leadership of Prussia consisting of neighboring states based on free trade. This brought economic unity to the Germans.
For the first time, Germany became a fiscal and commercial unit. The Zollverein united the German States in bonds of mutual economic interest.
It united them under the leadership of Prussia and it accustomed them to the exclusion of Austria from the Germanic body.
The Zollverein has brought the sentiment of the German nationality out of the regions of hope and fancy into those of positive and material interests.
The general feeling in Germany towards the Zollverein is that it is the first step towards what is called Germanization.
It has broken down some of the strongest holds of alienation and hostility.
By a community of interests on commercial and trading questions, it has prepared the way for a political nationality.
After 1830, many such trade agreementswere created and Austria was excluded from these.
It provided conducive circumstances for development of trade and industry and hence economic consolidationwhich laid the foundation of unification.