Freight margins as European internal duties

Antonio Paradiso, Roberto Roson () and Martina Sartori
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Antonio Paradiso: Ca’ Foscari University of Venice
Roberto Roson: Ca’ Foscari University of Venice
Martina Sartori: Universitas Mercatorum

No 2026: 13, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: This paper investigates the role of transport and logistics costs as de facto "internal duties" within the European Union, highlighting their impact on the free movement of goods. While formal tariff barriers have been eliminated, frictional costs—arising from distance, infrastructure, and distribution inefficiencies—continue to erode competitiveness and constrain market integration. Using Eurostat COMEXT data and the GTAP social accounting matrix, intra-EU transport margins across six SITC categories and 27 member states are estimated. A Computable General Equilibrium (CGE) simulation of a 50% reduction in intra-EU transport margins suggests aggregate welfare gains of approximately USD 63 billion annually, increased intra-European trade flows, and reduced extra-EU exchanges. The findings underscore the importance of addressing transport and logistics inefficiencies as a priority for EU economic policy, framing them as non-tariff barriers with substantial macroeconomic consequences.

Keywords: European Union; Internal duties; Transport margins; Logistics costs; Non-tariff barriers; Intra-EU trade; COMEXT; GTAP; CGE modeling; Market integration; Distribution costs; Trade policy (search for similar items in EconPapers)
JEL-codes: C68 F13 F15 L91 R41 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2026
New Economics Papers: this item is included in nep-tre
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Persistent link: https://EconPapers.repec.org/RePEc:ven:wpaper:2026:13

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