The free trade umpire: the European Court of Justice and judicial activism

5 important questions on The free trade umpire: the European Court of Justice and judicial activism

The problems associated with addressing trade restrictions through harmonization did not go unnoticed by the ECJ, which has often used its judicial power for the purposes of what?

Fostering an integrated economy.

Confronted by restrictions on their ability to operate across national borders, firms began to seek redress through the Community legal system. What was the Court asked to determine?

Whether the restrictions on imports imposed by member states were legitimate under the Treaty.

National measures that negatively impact trade were therefore prohibited. This was softened by the recognition that what?

That reasonable regulations made by member states for legitimate public interests such as health, safety, and environment policies were acceptable if there were no European rules in place.
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The notion of equivalence of national regulations which this ruling (ik: this ruling gaat over Cassis de Dijon) introduced, opened up the possibility that harmonization would not always be necessary for the construction of a single market. This was the crucial step in launching a new regulatory strategy, mutual recognition, which would make for an easier circulation of trade and commerce in the Community. What does mutual recognition imply?

That it is only in areas that are not mutually equivalent that member states can invoke national restrictions, practices, and traditions, and restrict free trade in the Community.

In fact, the Court argued that derogations from (or exceptions to) the free trade rule for the purposes of public health, fair competition, and consumer protection were possible, but that they had to be based upon what?

Reasonable grounds. Governments, whether national, local, or sub-national, had to demonstrate that any measure restricting trade was not simply disguised protectionism.

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