FREE MOVEMENT OF GOODS 2 Flashcards
Part IV.2: What is a MEQR?-
what shall we start with?
Let us talk about alcohol1. Whiskey2. Liqueurs3. Beer (and coffee)
Part IV.2.a: Dassonville-formula-who do we start with?
Case 8/74, Dassonville
facts: Dassonville imported Scotch whisky from France into Belgium without a certificate of origin from the UK customs authorities. According to a Belgian rule, all importers, including Belgian importers, of whisky had to have a certificate of origin if they wanted to re-sell. Does this rule infringe art. 34 TFEU?
- now unfortuantely under beligum law u need certif of orgin if wanted to sell whisky- so this is non tariff barrier to trade
ct said : the requirement to have a certificate of origin is a MEQR
- reason was that france did not require that type of certificate & makes it impossible to import whisky from franmce which may be cheaper in france bc wouldnt endf up with certif - thats why court said this measure equiv to quantative restriction - thats not why case is improtant - the case is improtanc bc of take home message
Part IV.2.a: Dassonville-formula- take home messgae:
Definition of MEQR: ‘All trading rules enacted by Member States which are capable of hindering, directly or indirectly, actually or potentially, intra-EU trade are to be considered as MEQRs’
Part IV.2.a: Dassonville-formula-more from take home message
- Extremely wide definition of MEQR
- Crucial element of MEQR is its effect: restrictive effect on inter-state trade - CRUCIAL ELEMENT IS EFFECT ON TRADE - IF THERE IS A RESTRICTVIE EFFECT ONTRADE IT WILL BE COVERED BY DANSSON VILLE FORMAULA
- Dassonville formula does not require discrimination (either direct or indirect) between domestic and imported goods. As long as rule has a restrictive effect on inter-state trade, it breaches art. 34 TFEU.
WHICH BRINGS ME TO 1ST Q- CANNOT OPEN SHOP ON SUNDAY DOES THIS FALL UNDER WIDE DEFINITION DASSONVILLE -YES IT DOES - THATS WHY U CAN SAY ITS EXTREMELY WIDE AND DOES NOT REQUIRE DISCRIMINATION AGAINST IMPORTATED GOODS- U ONLY LOOK AT THE EFFECT ON INTESTATE TRADE AND IF U CANT SELL GOODS ON SUNDAY- WELL THAT ALSO MEANS CANT SELL MY IMPROTANTED GOODS SO I HAVE RESTRICTIVE EFFECT ON TRADE THATS THE REASONING
Part IV.2.a: Dassonville-formula - so in all about this formula?
WE WILL SEE LATER TODAY CASE LAW CHANGED BC COURT REALISED IT HAD HUGE IMPACT ON WHAT MS CAN DO WITHOUT THE IMPACT OF EU LAW BUT THIS IS HOW IT ALL BEGAN VERY WIDE DEF OF … RESTRICTION
SO IF WE LOOK AT SCOPE OF ART 34 IT IS GIGANTIC
Part IV.2.a: Dassonville-formula -what are we looking at next?
Product requirements
Selling arrangements
Product use cases
Part IV.2.b: Product requirements -what we doing?
so lets move on from whisky to liqor
Part IV.2.b: Product requirements- what happened in case?
1 of the most important eu law cases
- german company
CJEU developed its case law further in Case 120/78, Cassis de Dijon
facts: Rewe wanted to import Cassis de Dijon into Germany. German rule regulating all fruit liqueurs, setting minimum alcohol content to 25%. French Cassis de Dijon only contained 15-20% alcohol. De facto ban to sell Cassis in Germany.
Part IV.2.b: Product requirements- more on the caase?
Does the German rule infringe art. 34 TFEU?
- so what should be obvious that it is aproduct req because the rule of facts, the ingreidients, teh content of the product and teh german rule was not directly discrim - why not direct discrim- bc it applied to domestic products aswell - it applied to all food liquors
and this is why case is so important
-German rule was a product requirement
German rule wasn’t directly discriminatory/ distinctly applicable
Part IV.2.b: Product requirements- what was held in the case?
Rule: if a product is lawfully produced/marketed in one MS, it must also be free to circulate in all MS [14]
THE SO CALLED Principle of mutual recognition AND
This principle operates in absence of EU harmonisation (EU legislation)
- IMPORTANT - THIS IS WHAT COURT SAID IN EARLY 80’S ABOVE - SO WHAT THIS MEANS IS PRODUCED IN GERMANY MSUT BE ABLE TO MOVE TO UK FREELY EVEN THOUGH OTHER RULES IN UK
German rule setting minimum alcohol content is a MEQR
it reduces inter-state trade of lawfully produced Cassis de Dijon
Part IV.2.b: Product requirements- EXCEPTION OF THIS?
Exception: mutual recognition does not apply if national rules hindering inter-state trade are necessary to satisfy mandatory requirements (= are justified) [8]
- THAT MEANS JUSTIFICATIONS CREATED BY COJ- CAN SEE IN OUR CASE OKAY PRODUCT IN PRICNIPLE MAY BE ABLE TO MOVE FREELY INTO UK BUT UK MAY BE ABLE TO JUSTIFY IT BASED ON MAD REQ - FOR E.G PUBLIC HEALTH REASONS
Part IV.2.b: Product requirements- SO THE ?
SO THE
German rule setting minimum alcohol content is a MEQR
it reduces inter-state trade of lawfully produced Cassis de Dijon
- COS DJON PRODUCED 25% CANNOT GO INTO GEERMANY = WUALITATATIVE RESTRICTION
Part IV.2.b: Product requirements- TAKE HOME MESSAGE OF Case 120/78, Cassis de Dijon
1.Principle of mutual recognition
AND
2.Mandatory requirements as possible justifications for “indistinctly applicable” measures
AS POSSIBLE JUSTIFICATIONS FOR INDISTINCLY - APPLIC MEASURES
Part IV.2.b: Product requirements - so what to we have?
SO WE HAVE Trade restrictions arise simply because national rules are different, even if the national rule applies equally to both imports and domestic goods.
-If national rule is a product requirement, this creates a dual burden (differential impact) for imported products
even though no discrimination in law, discrimination in fact MEANS IT DOES NOT DISCRIMATE IN LAW BUT DISCRIMINATES IN FACTS
= indirect discrimination (“indistinctly applicable” measure)
= MEQR
Part IV.2.b: Product requirements - why do u have dual burden on imported products?
LOGICAL STEP CT WENT THROUGH BUT WHY DOES PRDUCT REQ CREATE A DUAL BURDEN? - WHY DO WE HAVE THIS - IF WE TAKE FOR EXAMPLE GERMAN LAW ALCOHOL 25% WHERE FOES DUAL BURDEN COME FROM THATS WHY INDSCRIM NATION - FOOD LIQUOR COSTS U 10 - LETS ASSUME U PRODUCE GERMAN LIQOUR - NOW WHAT HAPPENS UNDER GERMAN LAW UR NOT ALLOWED TO SELL IN GEMRNAY COS NOT ENOUGH ALCOHOL SO U HAVE TO INCREASE LEVEL - CHANGE PRODUCT AND THAT INCREASEES COST - WHICH IS WHY DUAL BURDEN COS U HAVE TO PRDUCE PRODUCT TWICE IN ORDER TO SELL COMPARED TO DOMESTIC PRODUCTS
bc under german law cant simply sewll them u have to change them thats where INDIRECT DISCRIM COME FROM
and this works with all product requirements -
Part IV.2.b: Product requirements - what is real intention of german law? why do tehy have that?
its protectionism- protecting german food liquor market to require certain standards 0 which brings me to hand out
Part IV.2.b: Product requirements - look at handout?
at bottom - can only be justifed= catgeory of justifcaition - top bit = breach and u can see it differnitaires btw qrs- meqrs and certain selling arrangmenets - under meqrs u have distincitvely applicable measures in other words- DIRECTLY DISCRIM MEASURES
you have in middle INDISTINCITELY APPLICABLE - WHICH CONCERN PRODUCT REQ - THAT MEANS INDRECT DISCRIM - WHEN U AHVE PRODUCT OF REQ U HAVE INDIRECT DISCRIM
Part IV.2.b: Product requirements - what is the german view?
NOW USALLY i would continue with next but for this case speak about jsutification bc feel compelled to give native german experience
so why 25% - this protexts public health bc weake drinks are more liable to induce tolerance to alchol= 1st arg
2nd argument- the mimum acholcol rule protects german consumers bc when buy entitelt to atelast 25%
Part IV.2.b: Product requirements - EFFECT OF CASSE DE DIJON?
MOST IMPORTANT EU CASES BC OF PRINCIPLE OF - MUTUAL RECOGNITION AND THIS CASE HAS A HEAVY DE REGULATORY EFFECT - BC MS CAN NO LONGER APPLY PRODUCTS-
Effect of Cassis de Dijon ruling: de-regulatory
MS loose regulatory competence because they can no longer apply all national rules to imported goods
Product requirements = prima facie breach of art. 34 TFEU = PROHIBITED UNLESS JUSTIFIED
= presumption in favour of free trade
BUT POINT IS B.O.P IS ON MS IN THIS SCENARIO AND U THINK ABOUT PRINCIPLE OF MUTUAL RECOG IT ALSO
Due to mutual recognition principle, it makes sense to produce a good in a MS where production standards and costs are lowest (race to the bottom-argument)
BC IF U CAN PRODUCE CASS DIJON - SOMEWHERE ELSE FOR 7 PRINCIPLE OF RECOG CCAN GO INTO GERMANY AND CAN COMPETE U CAN SEE HOW IT WOULD IMPACT GERMAN MARKET
Part IV.2.b: Product requirements - what is the solution to this problem?
Solution: EU harmonisation setting a level playing field = positive integration - so called race to bottom argument - is wheteht eu can harm - lkooked at last week and di in law making
so this is cassedijohn
Part IV.2.b: Product requirements - overview on slide?
Overview post-Cassis de Dijon
But have a look at the handout: this is not the final picture!
if hw indirect discrim e.g product requirement burdern improted justified based on trwty provision if indirect u can jsutiy based on art36 and madtory requirement look on slide?
look at slide
WHAT WE DOING NOW- LOOK AT FEW EXAMPLES OF DIRECTLY DISCRIM PRODCUT REQUIREMENTS AND INDIRECT
Part IV.2.b: Product requirements - Part IV.2.b: Product requirements - what about direct dicrim product req?
Distinctly applicable measures (≈ direct discrimination)
Where a “foreign” good is treated differently to a “domestic” good (differential treatment in fact and law)
Part IV.2.b: Product requirements -e.g of direct discrim product requirements?
Examples
Origin-marking of imported goods – Case 113/80, Irish Souvenirs
Imported souvenirs had to be labelled “foreign”
compared to souvenier produced in ireld -= clear discrim
Part IV.2.b: Product requirements -e.g of direct discrim product requirements? 2?
- Import licences (Case 124/81, Comm. v. UK (UHT Milk))
‘Buy national’ advertising campaigns – Case 249/81, Commission v Ireland (Buy Irish) - if u wanted to sell import good in uk - need important licence- dont need any licence to sell domestic products- treated diff simply cos imported - BUY IRISH CASE - orgnaised funded and run by gov - made ad campaign pease only buy these pridicuts - ct said clear case of direct even tho not a product req
Campaign “is designed to achieve the substitution of domestic products for imported products”;
NOT a product requirement, but direct discrimination
-Part IV.2.b: Product requirements - INDISTICTLY APPLICABLE?
Indistinctly applicable measure (≈ indirect discrimination)
Measures that, whilst formally “neutral” have a greater impact on imported products (differential treatment in fact, not in law) -product requirements cos create dual burden are indriectly discrim againsmt improte prdicts for e.g packaging req
Product requirements create a dual burden for imported products = differential treatment in fact
Part IV.2.b: Product requirements- EXAMPLES OF INDISTINTLY APPLICABLE
Examples
Packaging requirements – Case 261/81, Rau (repackaging of margarine)- said margin cute shaped packagin so dont confuse with butter - example where law targets product itself- e.g import margaine from netherlends into belegium u have to change apckaging - create dual burden - so compegte agaisnt belgium butter which is cheaper - AGAIN PROTECTIONIST MEASURE
Requirements as to the presentation of goods (weight, size, etc.) – Case C-416/00 Morellato
Contents and ingredients restrictions – Case 178/84, Commission v. Germany (Beer purity case); Case 120/78, Cassis de Dijon - ANYTHING THAT RELATES TO PRESO OF GOODS IS PRODUCT REQUIREMENT- ANYTHING THAT RELATES TO PRESENTAITON OF GOODS IS PRODUCT REQUIRE - BEER PURTIY CASE - ONLY 4 REQ= PRODUCT REQUIREMENT- SO THINKA BOUT THESE CASE HERE GO IN BOX
Part IV.2.b: Product requirements - what about radicalisation - LEARN IN YOUR OWN TIME SO SKIP THOSE SLIDES
Radicalisation of art. 34 TFEU
After Cassis de Dijon, the Court started to develop case law that seemed to be “non-discriminatory” in nature (i.e not distinctly or indistinctly applicable). Equal burden in fact and law. This came to be known as a “market access” approach…
restrictions on the manner of sales were under attack
what are we going to look at now?
Selling arrangements
Product use cases