Internal trade barriers within the European Union reach up to 110% in tariff equivalents, causing manufacturing, trade and SMEs to suffer.
82% confidence
EconomyEuropean Union
Omissions
The MEP omits that the 110% tariff-equivalent figure comes from IMF estimates specifically for SERVICES, not for manufacturing or goods trade. For goods and manufacturing, the same IMF analysis estimates the equivalent at approximately 44-45% — less than half the cited figure.
The MEP mentions 'manufacturing' (manifattura) and 'trade' (commercio) alongside the 110% figure, creating the false impression that manufacturing and goods trade face barriers of that magnitude, when the 110% estimate applies only to cross-border services within the EU.
The IMF methodology behind these estimates has been contested by several economists (e.g., CEPR/VoxEU, Bocconi IEP), who argue the 44% and 110% figures are significantly overstated due to methodological flaws in how trade costs are calculated.
The MEP did not cite any source for the figure, making it impossible to assess whether she was aware of the goods-vs-services distinction.
Sources
PrimaryIMF — Europe's Choice: Policies for Growth and ResilienceOur estimates suggest that these barriers might be as high as a tariff equivalent of about 44 percent on average for goods trade — three times higher than what is typically applied on trade between the US and Canada. For services, trade costs are even higher, with tariff equivalents up to 110 percent.
SecondaryCEPR/VoxEU — No, the EU does not impose a 45% tariff on itselfThe IMF estimates that the internal barriers within the Single Market are equivalent to a 45% tariff on goods. And a 110% tariff on services. Just think of what we are missing out on. [...] The IMF's 45% number is not a tariff. It is an estimate of what tariffs would have to be to explain the observed lack of trade between EU members, assuming that trade costs are the only explanation.