Lecture notes
EU LAW
- Module
- EU Law (EULAW)
- Institution
- The University Of Kent (UKC)
IN depth analysis of EU law
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Free movement of goods: tariff barriersHistorical and global context of EU policy on free trade
in goods-
Introduction - the EU and free trade policy
• Historical context:
EU core goal to realise a common market between the MS
– frictionless inter-state trade (covering goods, services, capital
and persons)
§ Economic and political dimensions
• GATT 1947 (now WTO): provides basic international free
trade model
§ Art I MFN clause (most-favoured nation principle)
§ Art II Customs tariffs – negotiated reductions, agreed
schedules
§ Art III Non-discrimination (taxation, marketing
controls)
§ Art XI: Ban on import quotas
§ Art XX: Defences (e.g. protecting morals, health,
conservation)
§ Art XXIV: Derogation for certain regional trade
agreements
The EU as a regional trade agreement (RTA)-
• GATT:
§ Art. XXIV: allows derogation from MFN obligation for
two types of RTA, namely customs unions and free
trade areas
§ Both of RTA types focus on providing for free
movement of goods between their member states
§ Customs Union
§ Free movement of goods produced by members
§ Common external economic frontier
• Free Trade Area
§ Free movement of goods produced by members
§ Members retain sovereignty over trade relations with
non-members
§ Sovereignty: 10 customs unions and 233 FTAs
, Free movement of good doesn’t apply to third world countries
Part II: Legal framework of the EU customs union-
Art.28 TFEU (ex Art.23 EC)
“The Union shall comprise a customs union which shall cover all
trade in goods and which shall involve the prohibition between
Member States of customs duties on imports and exports and
of all charges having equivalent effect, and the adoption of a
common customs tariff in their relations with third countries.”
• External dimension – single external tariff policy
• Internal dimension - abolition of customs duties
External dimension of EU customs union
Common Customs Tariff (CCT) – since 1968
§ Sets single set of tariffs for third country imports into
the Union (Regulation 2658/87)
EU trade instruments
§ Protect EU goods from unfair competition, notably
below cost-pricing (dumping, subsidies) and breaches
of WTO rules
Rules of origin
Union Customs Code (Reg. 952/13)
Economic repercussions of tariffs-
Its important to take note of the fact that tariffs or the
imposition of tariffs by states can have serious economic
repercussions on industry and this is particularly important and
interesting in the current context of the relations between the
UK and the rest of the European Union when the two parties are
trying to set up as you are aware a new type of free trading
arrangement. and in the context of Brexit there have been a
number of warnings from various companies located in the UK
the dangers of having no free trading arrangement between
the UK and the rest of the after the end of the transition period
which expires at the end of 2020. Various companies have
issued warnings in the press over months in the air sector
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