Internal Market Harmonisation and Trade Implications for Non-EU Companies
HarmonisationInternal marketTradeBarriersTechnical regulationStandardisationManagement of enterprisesFöretagsledningManagementBusiness and Economics
After the formation of the European Union internal market in 1992, member state specific obstacles and barriers were largely removed. This was especially the case in harmonised industries where standardisation and technical regulation have led to legal certainty. Despite this, a large range of trade regulation continues to remain distortional to trade, in addition to the ongoing tariffs and subsidies. The key trade regulations relate to a number of areas involving technical regulations such as production labelling and the protection of intellectual property rights. Whilst policy makers claim justification based around the need to correct market failure in delivering desired outcomes, the question is whether these regulations are appropriate responses to market failures or if they have simply been imposed in an attempt to protect domestic markets. These regulations become especially clear for non-EU companies exporting their products to the EU internal market. When entering the EU, a large amount of primary and secondary legislation and case law becomes applicable, further compounding the difficulties found within different cultural affinity zones. In light of recent legislative developments, this paper seeks to conduct a research study on the Australian wine industry, an industry in European favour over the last decade. Through an examination of industry developments and the underlying EU legislation, the extent to which barriers and obstacles impede the natural forces of free market trade will be determined.