2. ·The role and importance of the free
Movement of goods in the internal
Market of 21st century
The free movement of goods is one of the success stories of
the European project. It has helped to build the internal
market from which European citizens and businesses are
now benefi ting and which is at the heart of EU policies.
Today’s internal market makes it easy to buy and sell
products in 27 Member States with a total population of more
than 490 million. It gives consumers a wide choice of
products and allows them to shop around for the best
available off er. At the same time the free movement of
goods is good for business. Around 75 % of intra-EU trade is
in goods. The single European marketplace that was created
in past decades helps EU businesses to build a strong
platform in an open, diverse and competitive environment.
3. This internal strength fosters growth and
job creation in the European Union and gives
EU businesses the resources they need in order
to be successful in other world markets. A properly
functioning internal market for goods is
thus a critical element for the current and future
prosperity of the EU in a globalised economy.
From a legal perspective the principle
of the free movement of goods has
been a key element in creating and
developing the internal market. It is
one of the economic freedoms
established by the EC Treaty.
4. Many of the major restrictions on the free movement
of goods have now been removed. The
groundwork was done, along with the introduction
of the single European market in 1993, but
the continuous stream of complaints from citizens
and businesses to the Commission underlines
the fact that even the best eff orts in the
past have not removed all trade barriers. Small
and medium-sized enterprises in particular still
suff er from them. That is why these companies
often prefer to concentrate their activities on a
few individual Member States instead of the
whole internal market, as they have diffi culties
in coping with diff erent national rules on technical
requirements for products that are not yet
harmonised. Additionally, market access may
be complicated by diff erences in retail or price
regulations, with which businesses in other
Member States are not familiar.
5. However, the free movement of goods is not
an absolute value. In specifi c
circumstances
certain overriding political aims may
necessitate
restrictions or even prohibitions which,
while hampering free trade, serve important
purposes such as protection of the
environment
or human health. Against a background
of major global developments it comes as
no
surprise that a ‘greening’ of the free
movement
of goods has taken place in recent years,
underlining
the fact that certain grounds for justifi cation
may be viewed diff erently over time.
6. Internal Market
The European Union's (EU) internal market (sometimes
known as the single market, formerly the common market)
seeks to guarantee the free movement of goods, capital,
services, and people – the EU's "four freedoms" – within the
EU's 27 member states.
7. The internal market is intended to be conducive
to increased competition, increased
specialisation, larger economies of scale,
allowing goods and factors of production to
move to the area where they are most valued,
thus improving the efficiency of the allocation of
resources.
It is also intended to drive economic integration
whereby the once separate economies of the
member states become integrated within a
single EU wide economy. Half of the trade in
goods within the EU is covered by legislation
harmonised by the EU.
8. ·The Creation of the internal Market
The creation of the internal market as a seamless,
single market is an ongoing process, with the
integration of the service industry still containing
gaps. It also has an increasing international element,
with the market represented as one in international
trade negotiations. Notably, the internal market is
open to three non-EU states via the European
Economic Area.
9. ·Customs duties and taxation
The European Union is also a customs union. This means that
member states have removed customs barriers between
themselves and introduced a common customs policy towards
other countries. The overall purpose of the duties is "to ensure
normal conditions of competition and to remove all restrictions
of a fiscal nature capable of hindering the free movement of
goods within the Common Market".
By agreement between the Union and the states concerned
Andorra, Monaco, San Marino and Turkey also participate in the
EU Customs Union.
