Introduction to the internal market

Question 1

The first Created in 1947 and lasting till 1994 and the second to this day. What does GATT stand for?
And what did it originally do?
What does the GATT (II) do?

Answer 1

• General Agreement on Trade and Tariffs
• first was a global attempt to remove impediments to trade creating a global trading order
• second is part of WTO. Promoted liberalisation of trade, most favourable nation status and protection of IP rights. Created trade regimes

Question 2

What are the four freedoms of the single market enshrined in the EC treaty?

Answer 2

People
Goods
Services
Capital

Question 3

What sections of the treaty for the functioning of the EU cover the free movement of goods?

Answer 3

Article 28- established a customs union
Article 34-5- seemed the elimination of quantitive restrictions on imports and exports and all measures having equivalent effect
Article 37- states required to adjust any state monopolies of a commercial character so “to ensure that no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of member states”

Question 4

The free movement of people is covered by what sections of the TFEU?

Answer 4

Articles 45-8- basic principles (workers)
49-54- freedom of establishment

Substantiated by secondary legislation
Article 54- Accorded by law of each member state
ECJ interpreted provisions in parallel as reinforced by EU citizenship

Question 5

Are the rights of free movement of people under TFEU absolute?

Answer 5

No, rights of entry and residence subject to derogation on the grounds of public policy, security and health- article 45 and 52

Question 6

What articles of the TFEU are the freedom to provide services found?

Answer 6

56-62- fundamental right of the market once accessing territory and to be treated on same basis as the MS national

Question 7

Free trade leads to specialisation which is a comparative advantage that leads to economies of scale. What advantages do economies of scale have?

Answer 7

-Maximise consumer welfare (producer will flourish too)
- ensure the most efficient use of resources
This is the capitalism theory

Question 8

Which articles cover the free movement of capital and what was it substantially amended by?

Answer 8

• articles 63-6 TFEU
• Maastricht treaty amended it to a similar provision as other 3 freedoms
• treaty also distinguishes between payments and capital movement between Member states and between an MS and 3rd countries