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EU Law Free Movement of Goods Jane Winn Tom Daemen February 10, 2009.

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Presentation on theme: "EU Law Free Movement of Goods Jane Winn Tom Daemen February 10, 2009."— Presentation transcript:

1 EU Law Free Movement of Goods Jane Winn Tom Daemen February 10, 2009

2 Administrative Matters Homework feedback: distinguish conflicts between states in free trade area with conflicts between national regulators and regulated industries Kelemen on Rules of Federalism (optional)

3 Free Movement of Goods Steps to Economic Integration: Theory & Practice Quotas & Tariffs; Measures Equivalent to Quantitative Restrictions (MEQR) Scope of Free Movement of Goods – Dassonville – Commission v. Denmark Selling Arrangements versus Trade in Goods – Keck

4 Steps to Economic Integration: Theory & Practice Free Trade Area – List of free trade areas – List of bilateral free trade agreements Customs Union – List of customs unions Common Market – List of common markets Economic Union – List of economic unions Katzenstein, P. J. (1985). Small States in World Markets: Industrial Policy in Europe. Ithaca, NY, Cornell University Press. – Small states band together for self-preservation under conditions of globalization

5 Common Market: Four (Economic) Freedoms Free movement of goods – Majority of internal market trade Free movement of persons – Freedom to seek employment in another member state on same basis as citizens of that country – 1990 Schengen Accord: remove internal frontier controls – Maastricht Treaty introduced EU citizenship Free movement of capital – Slower implementation than other freedoms Free movement of services – Cross-border financial services – Right of establishment of professionals (doctors, dentists, insurance agents)

6 Progress toward Four Freedoms Treaty of Rome President de Gaulle in France, opposed to economic union – Veto accession of UK de Gaulle walked out of negotiations, returned in 1966 under Luxembourg Accords: no vote if one state objects, stifling new legislation for more than a decade – ECJ not affected… Late 1970s-early 1980s recession & Jacques Delors broke stalemate – Single Europe Act came into force 1987 (qualified majority voting for Internal Market matters) – Complete Internal Market, Secure Four Freedoms by 1992

7 Quotas and Tariffs No quotas on trade between member states permitted Article 28 – Example Multi-Fibre Agreement – Temporary structural adjustment measures Customs union: common external tariff, no internal tariffs Art 25 – Applies to goods that originated in EU or that entered EU lawfully – What about administrative fees charged at the border for processing? – Does not apply to member state taxes that apply to domestic and imported products equally Applies to member state actions, not actions by private parties

8 U.S. Harmonized Tariff Schedule

9 Measures Equivalent to Quantitative Restrictions (MEQR) Member states are permitted to restrain imports on the grounds of: – Public morality, policy, security – Protect health and human life – Protect national treasures – Protect IPR MEQR assessed based on effects, not intent behind legislation

10 Selling Arrangements v Trade in Goods US: Robinson-Patman Act – Regulates price competition between small retailers and large chain stores that can negotiate bulk discounts France: Prohibition on resale at loss by distributor – Protect small retailers from competition from large retailers with lower overhead by prohibiting use of loss leaders


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