Process and Production Method Based Trade Restrictions in the EU
30 Pages Posted: 14 Apr 2008
Abstract
This paper asks whether EU law permits national rules which prohibit, restrict, or tax imports according to the way they are produced, rather than the measurable characteristics of the end product. Three contexts are looked at - the free movement of goods, public procurement, and the rules on discriminatory taxation. The surprising conclusion is that by contrast with the WTO the EU is slow to object to such trade barriers internally. Indeed, they seem to be consistent with the holistic trend in EU policy-making, which seeks to integrate environmental, ethical and economic policy. The possibility to create and apply such national rules is potentially important for states who wish to defend ethical or environmental concerns, even outside their own borders, and it can also have implications for the competitive position of domestic industry. The European Court of Justice appears to recognize and accept this.
Keywords: EU Law, process and production methods, taxation, free movement of goods, international trade, government procurement, environment, global warming, extraterritoriality, trade restrictions
JEL Classification: k32, k33, k34
Suggested Citation: Suggested Citation