3 & 4. Free Movements of Goods Flashcards
Free movement of payments and capital
Not only principles but individual rights
• to establishment, to provide services, to export goods to other member states etc.
• This “rights revolution” goes back to the adjudication of the European Court of Justice (ECJ) in van Gend en Loos C 26/62
> > (Art 63 TFEU)
Fundamental Freedoms vs Fundamental Rights
The concept of fundamental rights reflects the existence of a hierarchy of norms: Fundamental rights are higher ranking rights that are not only granted by the state, but are binding on it. The focus of FF is on economic freedoms and are the most important instrument of European economic integration
» Fundamental Freedoms are a cornerstone of the TFEU.
» Fundamental Rights are enshrined in the EU Charter of Fundamental Rights.
Fundamental Freedoms are the most important instrument of European economic integration - TRUE OR FALSE
TRUE!
Negative integration
- by elimination of any restrictions
- Neo liberal concept
- Deregulation
- Negative in the sense that EU law is designed to eliminate national laws which act as obstacles to cross border trading freedom
Free movements of goods
(Art 34 TFEU et seq)
• Core EU principle
• One of the four freedoms of the internal market
• Vital for the internal market
• Therefore, the TFEU prohibits all kinds of restrictions by Member States
Economic item that you cannot trade:
Services (IP) & Real State (cars and properties) – protected by EU Law but not by freedom of goods
Real State can be protected by …
free movement of capitals and freedom of establishment
Two types of restrictions on the free movement of goods
- Tariff barriers to trade
2. Non tariff barriers to trade (Arts 34 & 35 TFEU)
Tariff barriers to trade
- Customs duties
- Charges having equivalent effect to customs
• Tariff barriers to trade are import or export restrictions involving direct payments of money
• Exception : Charges for services rendered. e.g. fees for health inspections
» For the charge to escape Art 30 TFEU, the service must be of direct benefit to the importer or exporter and shall not exceed the value of the service
• The ban on tariff barriers (customs duties) is flanked by the prohibition of discriminatory taxation (Art 110 TFEU)
Quantitative restrictions:
Non-tariff barriers to trade: Measures which amount to a total or partial restraint of cross border trade:
• Ban (total restraint): blocks the import of a particular good altogether
• Quota (partial restraint): places a limit on the quantity of particular
Definition of a MEQR (elements of the Dassonville formula): (know this by heart)
All trading rules which are capable of hindering, directly or indirectly, actually or potentially, `intra-Community trade
Measures having equivalent effect to quantitative restrictions
Non-tariff barriers to trade:
• Short: MEQRs»_space; The main problem
• Overt quantitative restrictions are easily recognizable
• Member States seek to restrict inter state commerce by different
measures having indirect bad effects
Non-tariff barriers to trade:
- Quantitative Restriction
* Measures having equivalent effect
Why MEQR are the main problem?
• Much more difficult to identify than quantitative restrictions • Motives vary from protectionist to decent reasons of public interest • Forms differ, ex: >> Health and safety requirements >> Packaging requirements >> Marketing requirements
Definition of a MEQR:
All trading rules which are capable of hindering,
directly or indirectly, actually or potentially,
intra-Community trade.