FREE MOVEMENT OF GOODS WITHIN EU

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FREE MOVEMENT OF GOODS 

WITHIN EU 

 

Introduction 

European Union(EU), formerly called European Economic Community(EEC) or European Common Market, came into existence on March 25, 1957 at the conclusion of the Treaty of Rome or EEC Treaty or latterly called EC Treaty . The main objective of this Treaty was to promote a harmonious development of economic activities, a continuous and balanced expansion, an increase in stability, an accelerated raising of standard of living and closer relations between the states belonging to it. The principal means of achieving this objective is to establish a Common Market by allowing goods to move freely within EU States. This free movement of goods will promote efficiency in production because it will permit producers in different countries to compete directly with each other. To follow this free movement of goods notion, it is necessary to remove all internal trade barriers; physical, technical and fiscal barriers, which create discriminatory restrictions, between EU States. As a result, all EU Member States must refrain from imposing all kinds of trade restrictions on imports, exports or goods in transit between themselves.

However, although it has been nearly half century since the creation of the EC Treaty, its free movement of goods notion is still on the way of journey. It has not yet reached the star. The goods still could not enjoy true freedom to move within the European Community. There are two obstacles which impede the free movement of goods. The first obstacle is the interpretation of the European Court of Justice (the ECJ) on the general provisions concerning free movement of goods in the EC Treaty, especially on the general provisions of technical barriers under Article 28(formerly 30) and Article 29(formerly 34). The second obstacle is the exceptions to the general provisions of Articles 28(formerly 30) and 29(formerly 34) based on Article 30(formerly 36) and the mandatory requirements arising from the ECJ in the Cassis de Dijon.

In this research, Part I will touch upon the history and background of the European Integration. Part II will examine the interpretation of the ECJ on the general provisions of the free movement of goods in the EC Treaty. Part III will analyze Article 30(formerly 36) and the Cassis de Dijon case which provide the exceptions to the general provisions of Articles 28(formerly 30) and 29(formerly 34) under the EC Treaty. Finally, Part IV will be the conclusion and some comments.

I. History and Background of European Integration 

In 1957, the six original Member States (France, Germany, Italy, Belgium, the Netherlands and Luxembourg) agreed to sign the Treaty of Rome establishing the European Economic Community. After that, there were nine countries joining the Community in four times. The United Kingdom, Denmark and the Ireland joined the Community in 1973. Greece acceded to the Community in 1981. Spain and Portugal joined the Community in 1986. Austria, Finland and Sweden became members of the Community in 1995. Therefore, at present the Community numbers 15 members.

The Treaty of Rome has been revised three times. The first time was in 1986 by the Single European Act with its objective to create the internal market by December 31, 1992. To reach this objective, there were some requirements of removing many conflicting domestic laws and creating European laws. Fortunately, it was succeeded.

The second time was in 1992 by the Maastricht Treaty or a Treaty on European Union(TEU) with its notion to create a New European Union. It has transformed the European Economic Community into the European Community. This can imply that the Community is now concerned not only trade but also social matters. The name of European Union(EU) has begun to appear to the international community since then. Basically, the European Union is based on three pillars. The first is the cooperation of Member States within the Community. The second is the Common Foreign and Security Policy. The third is the Common Home Affairs and Justice Policy.

The third time was in 1997 by the Treaty of Amsterdam(ToA). ToA has been renumbering some old Articles, repealing some useless Articles and introducing some new Articles . Presently, one of the most interesting issue is the entry of 11 EU Member States into the third stage of Economic and Monetary Union(EMU) on January 1, 1999.

II. The Interpretation of the ECJ on the General Provisions of Free 

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Movement of Goods in the EC Treaty

A. The Background

As mentioned earlier, the objective of the European Community is to establish a Common Market which is built on a Customs Union. The first basic concept of a customs unions is the free movement of goods produced in Member States. Goods produced in one Member States should be able to move freely in all Member States without the payment of custom duties. The second is the common customs duties. If goods produced in third countries are imported into any Member States, they are subject to the payment of ...

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