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 http://en.wikipedia.org/wiki/Free_trade_area – List of bilateral free trade agreements http://en.wikipedia.org/wiki/List_of_bilateral_free_trade_agreements Customs Union – List of customs unions http://en.wikipedia.org/wiki/Customs_union Common Market – List of common markets http://en.wikipedia.org/wiki/Common_market Economic Union – List of economic unions http://en.wikipedia.org/wiki/Economic_and_monetary_union 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 1957 1958 President de Gaulle in France, opposed to economic union – Veto accession of UK 1963 1965 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 1974-2004 – 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