Free Movement of Goods
The Different Forms of Economic Integration
Intensity of integration:
o Free Trade Area – no customs duties and quotas within the
area
o Customs Union – common level of tariff on good entering the
area
o Common Market – free movement of factors of production
o Monetary Union – common currency
Techniques of market integration:
o Four freedoms
o Negative integration – Prohibition of national rules hindering
cross-border trade
o Positive integration – Harmonised or uniform standards for the
production of goods
Article 114 TFEU – makes the ordinary legislative procedure the
norm
Article 114 TFEU – The council shall, acting unanimously in
accordance with a special legislative procedure and after consulting
the European Parliament and the Economic and Social Committee,
issue directives for the approximation of such laws, regulations or
administrative provisions of the member states as directly affect the
establishment or functioning of the internal market.
Article 26 TFEU – defines internal market
o The Union shall adopt measures with the aim of establishing
or ensuring the functioning of the internal market, in
accordance with the relevant provisions of the treaties.
o The internal market shall comprise an area without internal
frontiers in which the free movement of goods, persons,
services and capital is ensured in accordance with the
provisions of the Treaties.
o The Council, on a proposal from the Commission, shall
determine the guidelines and conditions necessary to ensure
balanced progress in all the sectors concerned.
Customs Union
Article 28 TFEU
o Prohibition of customs duties – a charge or toll payable on
certain goods exported from or imported into the UK. Customs
duties are charged either in the form of a valorem duty or as a
specific duty charged according to the volume of the goods.
o Common customs tariff
Article 30 – prohibition on customs duties between member states
Case 7/68 Commission v Italy – about historical goods in particular.
Italy was taxing goods, claimed it was to protect artistic, historic and
archaeological heritage. Court held this was irrelevant. “That
provision makes no distinction based on the purpose of the duties
and charges the abolition of which it requires”, “[A]ny pecuniary
The Different Forms of Economic Integration
Intensity of integration:
o Free Trade Area – no customs duties and quotas within the
area
o Customs Union – common level of tariff on good entering the
area
o Common Market – free movement of factors of production
o Monetary Union – common currency
Techniques of market integration:
o Four freedoms
o Negative integration – Prohibition of national rules hindering
cross-border trade
o Positive integration – Harmonised or uniform standards for the
production of goods
Article 114 TFEU – makes the ordinary legislative procedure the
norm
Article 114 TFEU – The council shall, acting unanimously in
accordance with a special legislative procedure and after consulting
the European Parliament and the Economic and Social Committee,
issue directives for the approximation of such laws, regulations or
administrative provisions of the member states as directly affect the
establishment or functioning of the internal market.
Article 26 TFEU – defines internal market
o The Union shall adopt measures with the aim of establishing
or ensuring the functioning of the internal market, in
accordance with the relevant provisions of the treaties.
o The internal market shall comprise an area without internal
frontiers in which the free movement of goods, persons,
services and capital is ensured in accordance with the
provisions of the Treaties.
o The Council, on a proposal from the Commission, shall
determine the guidelines and conditions necessary to ensure
balanced progress in all the sectors concerned.
Customs Union
Article 28 TFEU
o Prohibition of customs duties – a charge or toll payable on
certain goods exported from or imported into the UK. Customs
duties are charged either in the form of a valorem duty or as a
specific duty charged according to the volume of the goods.
o Common customs tariff
Article 30 – prohibition on customs duties between member states
Case 7/68 Commission v Italy – about historical goods in particular.
Italy was taxing goods, claimed it was to protect artistic, historic and
archaeological heritage. Court held this was irrelevant. “That
provision makes no distinction based on the purpose of the duties
and charges the abolition of which it requires”, “[A]ny pecuniary
