Letizia Moratti· PPE

Nuanced

Internal barriers are equivalent to tariffs of up to 40%

Omissions

• The most widely cited figure from the IMF is 44-45% for goods, slightly higher than the 40% claimed. The claim does not specify whether this refers to goods, services, or both. The IMF estimate of 44% represents an average, not a maximum ('up to'). The 40% figure may understate the average barrier level according to the primary IMF source. These estimates are contested by some economists who question the methodology used to calculate tariff equivalents.

Sources

• PrimaryInternational Monetary Fund (IMF) - Europe's Choice: Policies for Growth and ResilienceInternal barriers might be as high as a tariff equivalent of about 44 percent on average for goods trade, and significantly higher for services
• AcademicBocconi University IEP - Europe's Internal Tariffs: Why the IMF's 44% Estimate Doesn't Hold UpCritique of the IMF's assertion that internal EU barriers are equivalent to a 44% tariff, questioning the methodology and assumptions
• SecondaryCEPR VoxEU - No, the EU does not impose a 45% tariff on itselfIMF estimates that internal barriers within the Single Market are equivalent to a 45% tariff on goods and a 110% tariff on services
• SecondaryThe Conference Board - The cost to business of Europe's internal 'tariffs'Internal barriers to trade in manufacturing inside the EU are equivalent to a 45% tariff