Process and Production Method Based Trade Restrictions in the EU

30 Pages Posted: 14 Apr 2008

See all articles by Gareth T. Davies

Gareth T. Davies

VU University Amsterdam, Faculty of Law

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

Davies, Gareth T., Process and Production Method Based Trade Restrictions in the EU. Available at SSRN: https://ssrn.com/abstract=1118709 or http://dx.doi.org/10.2139/ssrn.1118709

Gareth T. Davies (Contact Author)

VU University Amsterdam, Faculty of Law ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands

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