3 ms·

That article does contain the correct answer, so thank you very much for finding it, although the passage you've quoted is ChatGPT gibberish not in the source g

That article does contain the correct answer, so thank you very much for finding it, although the passage you've quoted is ChatGPT gibberish not in the source given. Per https://iep.unibocconi.eu/europes-internal-tariffs-why-imfs-44-estimate-doesnt-hold https://iep.unibocconi.eu/europes-internal-tariffs-why-imfs-..., the model treats shopping local as evidence of the existence of a trade barrier, as opposed to a rational preference based on cultural and environmental considerations. This is why the numbers are ridiculously high. (Is there a 120% implicit tariff for textiles? Or do people just prefer warm clothes in the north and breezy clothes in the Mediterranean?)

thaumasiotes 11mo ago
> Is there a 120% implicit tariff for textiles? Or do people just prefer warm clothes in the north and breezy clothes in the Mediterranean? There's no reason to expect the warm clothes to be made in the north and the cool clothes to be made in the south.
- snovv_crash 11mo ago
  At scale, no. But when very small there is a reason that people from Norway made rain jackets, and the brand cachet follows that too. European people also still have a much stronger national identity than a European identity, especially compared to the US with state vs. country level.
  - disgruntledphd2 11mo ago
    Languages are the biggest trade barrier in the EU.
    - Y_Y 11mo ago
      Where? When there's not a more obvious choice trade is done in English, packaging usually has multiple languages (which are often mutually comprehensible with other nearby languages) and your instruction booklets and regulations are given in the 24 official languages. Sure not every country has a good standard of English, but even France seems to be able to get by. The translation infrastructure is huge, and reasonable-quality machine translation⁰ has been freely available for years now. I don't mean to refute your experience, but I am suprised by the claim, because it's really not what I've seen here. Could you give some more detail on what you mean. ⁰ EU procedure means there are some notable absences in the list, but it's pretty comprehensive once you include citizens' second languages. See https://european-union.europa.eu/principles-countries-history/languages_en https://european-union.europa.eu/principles-countries-histor...
      - disgruntledphd2 11mo ago
        > Where? When there's not a more obvious choice trade is done in English, packaging usually has multiple languages (which are often mutually comprehensible with other nearby languages) and your instruction booklets and regulations are given in the 24 official languages. Sure not every country has a good standard of English, but even France seems to be able to get by. All of this is correct, and that's why the single market for goods (except for booze and tobacco) has been such a massive success. However, lots of growth (particularly in the US) comes from services, and for this, languages matter a lot more. Sure, lots of continental Europeans speak multiple languages, but the vast discrepancies in languages and regulations (insolvency, capital markets etc) means that there are dis-economies of scale in the EU. Like, there's a reason that companies start selling in their home market and then move directly to the US. A common language can't be assumed across the EU, while other large blocs (China, US) can make this assumption which is important for services trades in particular, as well as bespoke goods trade.
        Y_Y 11mo ago
        Ah, you're absolutely right. Only when reading your comment did I realise that I'll often go to the UK for some human-mediated service I need in English. (This despite Ireland and Malta having it as an official language, and the Nordics often having better English skills than natives.)
        disgruntledphd2 11mo ago
        > go to the UK for some human-mediated service I need in English. Come to Ireland, we have Guinness!
        Y_Y 11mo ago
        Murphy's is clearly superior
        disgruntledphd2 11mo ago

thaumasiotes 11mo ago

> Is there a 120% implicit tariff for textiles? Or do people just prefer warm clothes in the north and breezy clothes in the Mediterranean? There's no reason to expect the warm clothes to be made in the north and the cool clothes to be made in the south.

snovv_crash 11mo ago
At scale, no. But when very small there is a reason that people from Norway made rain jackets, and the brand cachet follows that too. European people also still have a much stronger national identity than a European identity, especially compared to the US with state vs. country level.
- disgruntledphd2 11mo ago
  Languages are the biggest trade barrier in the EU.
  - Y_Y 11mo ago
    Where? When there's not a more obvious choice trade is done in English, packaging usually has multiple languages (which are often mutually comprehensible with other nearby languages) and your instruction booklets and regulations are given in the 24 official languages. Sure not every country has a good standard of English, but even France seems to be able to get by. The translation infrastructure is huge, and reasonable-quality machine translation⁰ has been freely available for years now. I don't mean to refute your experience, but I am suprised by the claim, because it's really not what I've seen here. Could you give some more detail on what you mean. ⁰ EU procedure means there are some notable absences in the list, but it's pretty comprehensive once you include citizens' second languages. See https://european-union.europa.eu/principles-countries-history/languages_en https://european-union.europa.eu/principles-countries-histor...
    - disgruntledphd2 11mo ago
      > Where? When there's not a more obvious choice trade is done in English, packaging usually has multiple languages (which are often mutually comprehensible with other nearby languages) and your instruction booklets and regulations are given in the 24 official languages. Sure not every country has a good standard of English, but even France seems to be able to get by. All of this is correct, and that's why the single market for goods (except for booze and tobacco) has been such a massive success. However, lots of growth (particularly in the US) comes from services, and for this, languages matter a lot more. Sure, lots of continental Europeans speak multiple languages, but the vast discrepancies in languages and regulations (insolvency, capital markets etc) means that there are dis-economies of scale in the EU. Like, there's a reason that companies start selling in their home market and then move directly to the US. A common language can't be assumed across the EU, while other large blocs (China, US) can make this assumption which is important for services trades in particular, as well as bespoke goods trade.
      - Y_Y 11mo ago
        Ah, you're absolutely right. Only when reading your comment did I realise that I'll often go to the UK for some human-mediated service I need in English. (This despite Ireland and Malta having it as an official language, and the Nordics often having better English skills than natives.)
        disgruntledphd2 11mo ago
        > go to the UK for some human-mediated service I need in English. Come to Ireland, we have Guinness!
        Y_Y 11mo ago
        Murphy's is clearly superior
        disgruntledphd2 11mo ago