The Single Market: Trade Barriers and Trade Remedies

Abstract

In this article we investigate how well the single market functions in practice by examining barriers to trade in goods markets and we discuss efforts to improve the governance of the single market. We use two unique datasets of specific trade obstacles to empirically examine which barriers continue to undermine EU cross-border trade, and whether non-judicial remedies have provided some degree of effective informal market governance in tackling trade impediments. Based on four hypotheses on country, industry and policy variables we test the probability of removing trade barriers in the pre-litigation phase of infringement proceedings rather than by Court of Justice of the European Union (CJEU) decisions. We then assess the usage and effectiveness of the informal mechanism Solvit to resolve trade obstacles in the single market. We conclude that informal mechanisms operate in the 'shadow of hierarchy' as judicialization remains the last resort option when informal co-operation does not achieve the desired goals.

The Trade Effects of Border Controls: Evidence from the European Schengen Agreement

“…The latter can be split up into a customs union effect of 53 per cent and a single market effect of 69 To express these estimates as ad valorem tariff equivalents (AVTEs), we need the elasticity of substitution σ s . 14 We borrow two consistent external estimates from Egger Egan and Guimarães (2017) show that the Single Market still holds unrealized potential, as trade impediments continue to elicit business complaints and governments shield specific domestic industries from increased competition. (2012), who reportσ G ¼ 7:9849 andσ S ¼ 5:9591.…”

The Effect on Foreign Direct Investment of Membership in the European Union

“…Such arguments have been strengthened by the formation of the European single market, which represents a substantial deepening of the European integration programme (Grin, 2003; Egan and Guimaraes, 2017). The origin of the single market is a 1985 White Paper that identified, proposed and articulated an extensive set of about 300 measures.…”

Economic Governance, Regulation and Services Trade Liberalization

“…Realizing this potential requires not just liberalizing trade in services (removing discriminatory entry-restricting policies) but improvements in economic governance. It is well known that there is still much to be done to achieve the goal of a single EU market and that this is a core element of improving the economic growth performance of the EU (e.g., Mariniello, Sapir and Terzi, 2015;Egan and Guimarães, 2016). Both the monitoring exercises by the European Commission and recent data compilation projects by the OECD show there is a great deal of variance in both the level of external services trade restrictions across EU member states, and the quality of economic governance.…”