European Single Market - Coursework Example

EUROPEAN SINGLE MARKET: I am the Head of the Legal Depart of Unifilm plc, a UK-based film-production company which also sells photographic equipment to the film industry. This short report to the board of directors is in relation to various problems in making films and selling equipment in Zandia. a)Zandia government has imposed a charge on the importation of film for production purposes, the proceeds of which are used to benefit unemployed actors in the country. This restriction imposed by the Zandian government is not compatible with the European Union Law. One of the ‘four freedoms’ of the European single market is the free movement of goods. Member states of the European Union can restrict this free movement of goods only in exceptional cases, for example when there is a risk resulting from issues such as public health, environment and consumer protection ( Article 30, EC). Products legally manufactured and marketed in one member state should in principle be able to move freely throughout the single market of European Union [Barnard, Catherine 2007]. The charge on the importation of film for production is therefore not compatible under the European Union law. The film is not a product that poses any special risk resulting from issues such as public health, environment or consumer protection. The imposition of the charge on the import of films is against article 34 to 36 of the Treaty for functioning of European Union (TFEU). b) Zandia government has imposed a charge for inspecting imported DVDs standards for quality under a mandatory European Union scheme. This charge will be compatible under the European Union law if the mandatory European Union scheme under which the DVDs are imported allows for this charge to be imposed. However it will not be compatible if the scheme does not allow such a charge to be imposed. The European Union promotes the free movement of goods. Therefore such a charge if imposed unilaterally by the Zandian government is not compatible under the European Union Law. It restricts the free movement of goods by placing charges that are equivalent to custom duties. Also since the Zandian government imposes no such charge on the DVDs manufactured domestically, therefore this also qualifies as an instance of discrimination against foreign manufacturers and marketers of goods. c) Zandian government has imposed a restriction on importing cameras until they comply with Zandian specifications which are applied only to imports, on the basis that the market has been flooded with counterfeit cameras. This is a technical barrier to trade and therefore is not compatible under the laws of the European Union single market. The Agreement on Technical Barriers to trade ( TBT ) concluded under the framework of the World Trade Organization ( WTO ) guides the European Union Law in this regard. The TBT calls for non-discrimination on technical grounds between national and imported products. The restrictions imposed by the Zandian government are discriminatory. They are discriminatory because they are applicable only for imported cameras and not for domestic cameras. As far as the issue of counterfeit cameras is concerned, the European Union protects intellectual property laws and fights against piracy and counterfeiting. On September 2008, the council adopted a Resolution on a comprehensive anti-counterfeiting and anti- piracy plan. This Resolution endorsed the need to step up the fight against fake goods and called for the creation of a European Observatory on counterfeiting and piracy. The provisions of article 28 and 29 of the European Charter shall not preclude prohibitions or restriction on imports, exports or goods in transit if the prohibitions or restrictions are justified on the grounds of public morality, public policy or public security; protection of the health and life of humans, animals or plants; the protection of national treasures possessing artistic, historical or archaeological value; or the protection of industrial and commercial property. None of the above conditions which allow for prohibitions or restrictions are applicable in the case of imported cameras to Zandia. Therefore the technical barriers or restrictions put in place by the Zandian government are totally unjustified and are not compatible with the European Union Laws. They are equivalent to non-tariff barriers to free trade and free movement of goods among the member states of the European Union. They therefore violate one of the four freedoms of the European Single market. d) The Zandian government has imposed a requirement that cameras for filming must automatically ‘cut out’ after a certain time, following a medical report in Zandia that eyesight could be damaged by prolonged use of film cameras. All cameras made in Zandia provide for such a ‘cut out’, whereas no foreign-made cameras are similarly constructed. This requirement is justified because article 30 of the European Community law allows for prohibition if they relate to protection of health of the citizens of the country. The medical report in Zandia says that eyesight could be damaged by prolonged use of the film cameras. Also cameras made in Zandia already provide for such automatic ‘cut-out’ after certain time. Therefore this provision for having automatic ‘cut out’ is also not discriminatory against foreign manufacturers. It would have qualified as a technical barrier to free trade if the issue of public health was not involved. Governments or member states can therefore still impose certain barriers on free trade if public morality, policy, security, health and cultural issues are at stake. A precedent can be drawn from the case when France restricted the import of beef from Britain because of the mad cow disease crisis in the United Kingdom. Is there a remedy against the Zandian Government for any losses suffered by Unifilm Plc.? There is definitely a remedy against the Zandian Government for any losses suffered by Unifilm Plc. By imposing some restrictions that are not compatible with the European Union Law, the Zandian government is not complying with some of the obligations that have been placed on it by the numerous treaties that underpin the European Union single market. Unifilm Plc. can therefore file a complaint in the European Commission. The European Commission is the executive body of the European Union. It is responsible for ensuring that the European Union laws are implemented across all the members of the European Union. If the European Commission finds that the grounds of complaint of Unifilm Plc are justified, then it will direct the Zandian government to pay for the damages caused by its policies and restrictions. The Zandian government can comply with the directions of European Commission or it can appeal against the order of the European Commission, regarding reparation for any losses suffered by Unifilm, in the Court of Justice of the European Union. The Court of Justice of the European Union encompasses the whole judiciary of the European single market. The Court of Justice of European Union has its seat in Luxembourg. The three sub-courts of the Court of Justice of the European Union are: 1) The European Court of Justice. 2) The General Court. 3) The European Union Civil Services Tribunal. The European Court of Justice is the highest court in European Union in matters of European Union Law. It is part of the Court of Justice of the European Union institution and its main obligation is to interpret the European Union laws and to ensure their equal application across all the member states of the European Union [Craig, Paul; Grainne De Burca , P. P. Craig ,2007] . The General Court is attached to the European Court of Justice and has jurisdiction to hear and determine at first instance all direct actions brought by individuals and member states of the European Union. The exceptions here are those direct actions that are to be assigned to a judicial panel or are reserved for the European Court of Justice. The European Union Civil Services Tribunal was established in December 2005 and is a specialized tribunal under the Court of Justice of the European Union. The tribunal was created under the provisions of the Treaty of Nice which provides for creation of special judicial panels in certain specific areas [Anneli Albi ,2005]. The Civil Services Tribunal now adjudicates first instances of direct action involving disputes between the European Union and its civil services. Appeals against the judgments of the Civil Services Tribunal can be made in the General Court. The decision of the European Court of Justice will be final in this case. Suppose the European Commission rejects the compliant of Unifilm Plc. against the Zandian government and finds no merit in it. Then Unifilm Plc. can appeal against the decision of the European Commission in the General Court of the Court of Justice of the European Union. The Zandian government can be compelled to remove the restrictions if the European Commission directs it to remove the restrictions that are counter to the provisions of the European Union Law. The Zandian government has the option to appeal against such directives of the European Commission in the Court of Justice of the European Union. The ultimate court of appeal in this case will be the European Court of Justice and the Zandian Government, European Commission and Unifilm Plc will all be bound by it. An alternative of this legal process is direct interference of the European Council. The European Council is in many ways the supreme political authority of the European Union. It can use its leadership role to direct the Zandian government to withdraw restrictions and policies that are not compatible with the European Union Law. References: www.europa.eu Barnard, Catherine ,August 2007, The Substantive Law of the EU: The four freedoms (2 ed.). Oxford University Press. Craig, Paul; Grainne De Burca , P. P. Craig ,2007, EU Law: Text, Cases and Materials (4th ed.). Oxford: Oxford University. Anneli Albi ,2005,. Implications of the European constitution, EU enlargement and the constitutions of Central and Eastern Europe. Cambridge, UK: Cambridge University Press Smith, David ,1999, Will Europe work?. London: Profile Books. Wilkinson, Paul,2000, International Relations. Oxford University Press . Read More