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Tuesday, June 8, 2010

FREE trade in EU

Thanks to the effective single market now in place, EU enterprises can sell and buy goods all over the European Union.

Free movement of goods

The EU has removed the obstacles that once got in the way of imports and exports and businesses are now free to transport and sell goods throughout EU.

Restrictions

EU countries may only restrict free movement of goods in exceptional cases, justified by the public interest, e.g. for reasons of public health and safety, environmental protection or consumer welfare. Restrictions must be proportionate.
The free movement of goods may also be restricted as a precaution when scientific data suggests goods may pose a threat to humans, animals, plants or the environment.

New legislative framework

The EU adopted new rules to remove the remaining obstacles to the free movement of goods through:
  • stronger enforcement of EU market legislation;
  • better rules on market surveillance;
  • a common framework for marketing products;
  • more credibility for the CE marking;
  • fully operational mutual recognition.

Harmonisation

Since differences in national technical rules can impede trade, the EU adopted harmonising measures for several products - chiefly goods considered high-risk, e.g. pharmaceuticals, vehicles, toys, chemicals, electrical and mechanical equipment and medical devices. Products manufactured in accordance with these rules can be put on any EU country market.

Standardisation

Since the mid 1980s, the EU has developed a new approach to harmonisation based on standardisation.
The EU legislation, referred to as new approach directives, sets the essential requirements that products have to meet to be sold across the EU. It is for manufacturers to turn these essential requirements into technical specifications.
To help them do that, some 20 000 European standards have so far been published. Goods that comply with European standards are taken to comply with the essential requirements laid down by EU directives. It is however voluntary and, if they prefer, manufacturers may choose other technical solutions to meet these requirements.
EU harmonised standards are drawn up by the European Committee for Standardisation (CEN), the European Committee for Electrotechnical Standardisation (CENELEC) and the European Telecommunications Standards Institute (ETSI) - once a consensus has been reached among all interested parties (industry, public authorities, consumers, environmental organisations, trade unions).
Standardisation is a strategic instrument for innovation and competitiveness. The EU aims to ensure that standards keep pace with new knowledge and to encourage stakeholders - especially small businesses - to get involved in standardisation.

CE marking

The CE marking on a product means it complies with all the relevant EU requirements. EU countries cannot restrict market access to products bearing the CE marking unless there is evidence that the product does not comply with the rules.

Mutual recognition

In sectors where there has been no harmonisation, trade relies on the mutual recognition principle: products legally manufactured or marketed in one EU country can be marketed in the others, even if they do not fully comply with those countries' technical rules, e.g. on form, size, weight, composition, labelling or packaging. This means that firms can do business across the EU as long as they comply with regulations in their own country.

Resources

The European Commission proposes a website with information on how to submit a complaint against an EU country for any measure (law, regulation or administrative action) or practice incompatible with a provision or a principle of Community law.

Personalised help and advice

SOLVIT helps businesses deal with problems that arise when national authorities wrongly apply EU market rules.
The Enterprise Europe Network provides information and advice to business owners on free movement of goods.

Legal texts

Key documents


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