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.