Internal trade barriers in the European Union are equivalent to tariffs of 110% for services.

Omissions

• The MEP did not cite the source of the 110% figure, which originates from an IMF analysis published in December 2024 ('Europe's Choice: Policies for Growth and Resilience').
• The 110% figure is an econometric estimate of the cost equivalent of non-tariff barriers, not an actual applied tariff rate. It reflects regulatory fragmentation, differing national standards, licensing requirements, and other barriers to cross-border services trade within the EU.
• The IMF's methodology for calculating these tariff equivalents has been subject to academic criticism. A CEPR/VoxEU column titled 'No, the EU does not impose a 45% tariff on itself' and a Bocconi University analysis have both questioned whether the underlying trade models adequately capture EU Single Market dynamics.
• The estimate refers to the gap between actual intra-EU services trade and what would be expected in a fully integrated single market, which involves strong modelling assumptions.

Sources

• PrimaryInternational Monetary Fund (IMF)For services, these estimated barriers are even steeper, equivalent to a 110 percent tariff.
• SecondaryCEPR/VoxEUThe IMF estimates that the internal barriers within the Single Market are equivalent to a 45% tariff on goods. And a 110% tariff on services.
• SecondaryReutersThe International Monetary Fund has estimated EU internal barriers are the equivalent of tariffs of 44% for goods and 110% for services.
• SecondaryBocconi University - IEPThe assertion that 'internal EU barriers are equivalent to a 44% tariff' has gained the status of revealed truth—repeated so often that it is rarely questioned. Yet the underlying methodology has significant limitations.