Action
Single Market
The
Internal Market, opportunities for your business
Improving
the internal market in the 21st century
When
the internal market is not working
Action
single market, here to help
Action
single market can solve your problem
Taking
your complaint further
Common
Problem areas
Useful
contacts
The
information is also available for download
(309 kb)
The
Internal Market, opportunities for your business
The
Internal Market was forged through an agreement between
a number of European countries to pull down trade
barriers and build an area without internal frontiers:
an area in which four fundamental freedoms - the free
movement of goods, people, services and capital -
were assured.
In
practical terms this has been achieved through the
complete removal of customs barriers between all EU
Member States and through mutual recognition of goods
and service standards.
Today
the Internal Market is home to around 383 million
consumers and, in 2000, was the destination for 53%
of all UK exports, worth some £142 billion. It includes
the fifteen Member States of the European Union together
with Iceland, Norway and Liechtenstein.
Enlargement
The
Copenhagen Council in December 2002, took the momentous
decision to admit ten new members to the Internal
Market from 1 May 2004. From that date the Republic
of Cyprus, the Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Malta, Poland, Slovakia and Slovenia would
become full members of the Internal Market. A larger
Internal Market means that there would be fewer barriers
to trade and businesses would benefit from access
to the largest market for trade and investment in
the world. With around 500 million consumers there
would be an increase in the purchasing power of the
new Member States and thus the demand for EU goods
and services.
The
advantages for business have been huge. The Internal
Market has:
- Eliminated
trade tariffs and customs barriers to give British
companies a wider market for UK goods.
- Made
it easier and quicker to trade by reducing export
bureaucracy and establishing common product and
safety standards so that manufacturers can sell
their products all over Europe without lengthy and
expensive re-testing in every country.
- Opened
up the European labour market through mutual recognition
of skills and qualifications.
- Increased
choice and helped to bring down prices through greater
competition and liberalisation: cheaper air fares,
- lower
energy costs and lower telephone charges are just
part of the result.
- Made
public purchasing more open and established fairer
competition
Improving
the Internal Market in the 21st century
The
Internal Market has greatly improved the business
environment across Europe. Nonetheless, some trade
barriers remain, often where common standards are
yet to be agreed and national legislation still applies.
The UK is working with the European Commission, EU
Institutions and fellow Member States to improve the
Internal Market and ensure that it responds to the
new challenges presented by the developing global
economy. Current reforms aim to help the market respond
to the economic challenges of the new millennium and
make Europe the most advanced knowledge-based economy
in the world.
When
the Internal Market is not working
There
is no doubt that the creation of the Internal Market
has brought huge benefits to business across Europe.
Many British exporters have taken advantage of the
improved conditions to expand their markets in Europe.
However, while most do not encounter difficulties
trading in Europe, some do.
Enforce your rights
The
principle of Mutual Recognition is the cornerstone
of the Internal Market. In simple terms, it means
that products or services acceptable for sale in one
Member State cannot be banned from sale in any other
Member State, except in exceptional circumstances.
In addition, skills and qualifications gained in one
Member State are recognised in all others. The mutual
recognition of national rules removes the need for
detailed agreements between Member States, except
in certain areas eg to protect health and ensure safety.
Where Member States have agreed that legislation is
required on health and safety grounds, they have generally
passed directives setting common standards across
the EU. Products complying with the requirements can
circulate freely. However, some exporters still experience
problems because some countries continue to have health
and safety concerns or because of a lack of understanding
of EU regulations by national authorities.
Information
and Problem Solving
It
is in the interest of manufacturers, service providers
and consumers across Europe that the Internal Market
works as well as possible. To gather information on
how well the market is performing, the European Commission
has established a ‘Dialogue with Citizens and Business’.
The dialogue uses local European Information Centres
to provide EU-related information and advice to business
and obtain feedback about their experience of trading
in Europe. The Commission has also produced a series
of leaflets outlining citizens’ rights and set up
a network of national Co-ordinating Centres in each
Member State. The UK Co-ordination Centre is known
as the Action Single Market/UK SOLVIT Centre and is
based in the Department of Trade and Industry.
Action
Single Market/UK SOLVIT Centre (ASM)
Action Single Market/UK SOLVIT Centre exists to improve
the advice and help given to business and citizens
experiencing difficulties when exercising their Internal
Market rights and to investigate complaints from other
Member States wishing to do so. Specifically, ASM’s
role is to assist where the problems arise from mis-application
of Internal Market rules. ASM deals with some 80 substantive
cases a year, most of which are resolved to the satisfaction
of the UK complainant.
SOLVIT
The
majority of cases are resolved through direct discussion
with the country where the problem has arisen. To
facilitate the work of the Co-ordination Centres in
handling complaints from business and citizens, the
Commission has worked with Member States to develop
SOLVIT. This EU wide database system operates through
a network of SOLVIT Centres based in the national
administration of each Member State. The database
contains security features which ensure that private
and sensitive business data are stored and transmitted
securely.
It
is an alternative dispute resolution mechanism which
represents an informal approach to problem solving
where the problems are caused by public administrations.
If a problem remains unresolved, formal proceedings
can still be initiated. However, there are certain
instances where SOLVIT will not be used. These include
cases where legal proceedings are already underway;
where deadlines under national law need to be respected
to maintain rights and where the problem is a business-to-business
or business-to-consumer one. Examples of some of the
problems SOLVIT can deal with include voting rights,
car registration, border controls, market access to
good, public procurement, VAT issues and establishment
of a company. Further information on SOLVIT can be
found on the Commission Communication SOLVIT website
at: http://europa.en.int.comm/internal_index_en.htm
Fighting
Your Corner In Europe
The
Action Single Market/UKSOLVIT Centre team provides
a free service which includes:
- Advice
and information to businesses and citizens
- Taking
up complaints with the appropriate national authority
and, where necessary, the European Commission
- Presentations
to business about the work of Action Single Market
and SOLVIT
All
enquiries are treated as commercially confidential.
However, to be able to resolve problems through SOLVIT,
it is necessary to share details of cases with our
counterparts in the country where the problem has
occurred. Before doing so we request your consent
in writing.
The
service is designed to ensure that any company or
citizen can afford to take action to ensure their
product can compete fairly in any part of the Internal
Market. If you are having a problem exercising
your Internal Market rights, however trivial it might
seem, we want to know about it.
If
your company is experiencing difficulties trading
with EU or EFTA countries, contact us today.
Address:
Action Single Market/UK SOLVIT Centre, Kingsgate
House,
66-74 Victoria Street, London SW1E 6SW
Tel:
020 7215 4459/4481
Fax: 020 7215 4720
E-mail: asm@dti.gsi.gov.uk
Action
Single Market/UK SOLVIT Centre can solve your problem
Action
Single Market/UK SOLVIT Centre aims to resolve your
problems in the quickest and most efficient way. In
most cases, we will do this informally through our
contacts in the relevant Member State. Occasionally,
however, we have to pursue a case formally through
the Commission. Our first step is to gain a clear
understanding of the issues involved so that we can
present your case to the appropriate authorities as
convincingly as possible. To get a full picture of
the situation, we may need to meet you to talk through
your case. This can be at your own premises.
Once
we understand your case, we will let you know if we
think there are genuine grounds for complaint. If
there are, we will take the case forward on your behalf.
You will receive a written acknowledgement of your
complaint within five working days of telling us about
it, followed by a progress report within two to three
weeks. The progress report will let you know what
we can do and what we have achieved in our investigations
so far.
How
We Pursue Your Complaint
In
resolving your case:
- We
will approach the SOLVIT Co-ordination Centre in
the Member State concerned directly or by getting
in touch with the British Embassy there.
- If
that proves unsuccessful, we will put your case
to the European Commission.
What
You Can Do To Strengthen Your Case
When
presenting your complaint there are a number of steps
you can take which will help us to take the matter
forward more quickly. It will help us if you provide:
- A
brief summary of the issue
- Any
correspondence on the matter
- Any
relevant documentation
- Any
other supporting evidence
Don’t
forget - all material you give us will be treated
as confidential.
Taking
your complaint further
A
large majority of cases (around 80%), are resolved
without having to involve the commission. This is
in part because the Action Single Market/UK SOLVIT
Centre team can call on a wide network of expertise
in presenting your case, including:
- Technical
experts
- Government
legal services
- Specialists
throughout Whitehall
- Relevant
SOLVIT Centre
- British
Embassies throughout Europe
Complaining
through the European Commission
If
the bilateral approach proves unsuccessful, Action
Single Market/UK SOLVIT Centre will help you to present
your case to the Commission and will monitor its progress.
It is possible that the Commission will proceed with
a formal infraction procedure on the basis
of the evidence provided. Outlined under the
EC Treaty, the infraction process involves a number
of stages in which the Commission writes to the Member
State concerned and acts as arbiter. Because the procedure
is formal, it can take some time to resolve individual
cases - even, in some of the worst cases, several
years. This can be frustrating, but the involvement
of the Commission can add considerable weight in fighting
your cause. The final step in such an investigation
is taking the case to the European Court of Justice.
Virtually all cases, however, are resolved before
they reach this stage.
Getting
Others Involved
In
some cases, a trade barrier affects an entire sector
of the economy. In these circumstances, it may be
helpful to involve the appropriate Trade Association
or other representative bodies. Most are happy to
act as liaison points with Action Single Market/UK
SOLVIT Centre where a particular issue is affecting
a whole sector. Again, commercial confidentiality
will be fully respected in such cases.
Common
Problem areas
Many
of the cases referred to Action Single Market/UK SOLVIT
Centre focus on the same issues because there are
some areas where gaps remain in European law. Here
are some of the most common problem areas.
Public
procurement
Governments
and other public authorities are major purchasers
of goods and services, accounting for more than £500
billion worth of business in the European Union each
year. European purchasing rules are intended to open
such contracts to cross-border competition and to
make sure that businesses across the EU find out about
government procurement opportunities. Details of tenders
are published on-line in the Official
Journal of the European Communities.
Unfortunately
sometimes public authorities act unfairly. If you
think your company is being unjustly excluded from
bidding for a government contract, we will try to
make sure that you get the chance to compete on equal
terms in much the same way as we would deal with any
other case. You can also take action under the EU’s
Public Purchasing Remedies and Compliance Directives,
which give you the right to appeal to national courts
where there is discrimination. Information about public
procurement rules can be found at the European
Procurement Service website. Guidance on the EC
rules is also available on the Office
of Government Commerce website www.ogc.gov.uk
Technical
Standards
Standards
are specifications for goods and services which are
agreed by consensus and approved by a recognised standardisation
body. Usually, they are drafted by European or international
standards organisations at the instigation of industry
or other interested parties to enable access to wider
markets and to offer protection to the consumer. While
many standards and associated testing and certification
requirements have been harmonised at European or international
level, some have not. Surveys of business show that
national requirements remain one of the major obstacles
to trade within Europe. For advice about standards,
contact the British
Standards Institution. For information about standards
and technical regulations generally, including about
CE markings, see the DTI’s
web pages on standards. These include links to
a number of other useful sites.
VAT
One
area which causes frustration to a number of businesses
is the considerable delay they experience in reclaiming
VAT paid up-front in another Member State. Bureaucratic
procedures mean that these delays can run into months,
even years. Action Single Market/UK SOLVIT Centre
has experience of dealing with such problems and has
achieved notable successes in facilitating refunds
and in some cases recovering interest which has resulted
from delays in payment.
State
Aids
Member
states, including the UK, can develop aid programmes
to support industry, but the European Commission has
considerable powers to monitor, control and restrict
the forms and levels of aid to ensure that it does
not distort, or threaten to distort competition. If
you think you are losing out because of unfair government
subsidies to a rival in another Member State, get
in touch with the Action Single Market/UK SOLVIT team.
We will try to establish whether the subsidy has been
approved by the Commission. Low pricing is not, in
itself, sufficient evidence of unlawful subsidy. Nonetheless,
if the Commission has not approved the aid package,
we can ask it to investigate formally and if proven,
order the recovery of the unlawful aid with interest
from the date granted.
Labelling
Goods
on sale in the Internal Market must comply with a
number of compulsory labelling requirements. In addition,
some Member States use a variety of voluntary labelling
schemes, particularly relating to environmental issues.
All labels have to be readable and accurate and should
not mislead the consumer. Nonetheless, excessive labelling
requirements can impose additional costs on businesses
and because of this can constitute a barrier to trade.
If you believe that the labelling you are being asked
to provide goes beyond what is reasonable, contact
us and we will take up your case with the relevant
authorities.
Mutual
Recognition of Professional Qualifications and Experience
The
basic principle is that if a person is qualified to
exercise a profession in their home country, they
are qualified to exercise the same profession in any
other Member State. However, migrant workers still
face problems when trying to work in some Member States.
The most common problem experienced within the Internal
Market is the transferability of professional or vocational
qualifications. Each Member State retains its own
particular system of education and training which
leads to its own particular professional qualifications.
In many Member States access to professional and vocational
activities is controlled by laws requiring the possession
of a national diploma in the area of work concerned.
To overcome such obstacles the EU has implemented
a number of directives aimed at facilitating mutual
recognition. However, individuals continue to face
some problems in some Member States. If you are affected
by such problems, the Action Single Market/UK SOLVIT
Centre will take your case up with the Member State.
Useful
contacts
Department
of Trade and Industry
Action Single Market/UK SOLVIT Centre
Kingsgate House
66-74 Victoria Street
LONDON SW1E 6SW
Tel: 020 7215 4459/4481
Fax: 020 7215 4720
Email: asm@dti.gsi.gov.uk
General
information about Britain and Europe is available
at www.fco.gov.uk.
The
European Commission The European Commission provides
information about doing business in Europe on its
website. The site includes advice on a number of these
issues, including public procurement and standards.
For details see http://www.europa.eu.int/business
The
European Commission can also provide information about
the Internal Market and advise companies about how
to contact their local European Information Centres.
The Commission has four offices in the UK:
8,
Storey’s Gate
London
SW1P 3 AT
Tel: 020 7973 1992
Fax: 020 7973 1900/10
Windsor
House
9/15 Bedford Street
Belfast BT2 7EG
Tel: 02890240708
Fax: 02890248241
4
Cathedral Road
Cardiff
CF1 9SG
Tel: 029 20895020
Fax: 029 20895035
9
Alva Street
Edinburgh
EH 2 4PH
Tel: 0131 225 2058
Fax: 0131 226 4105
For
general information from the Commission, see www.europa.eu.int/business
EFTA
For
information on the EFTA members of the Single Market
(Norway, Iceland and Liechtenstein) contact:
EFTA
Secretariat
74 rue de Treves
B-1040 Brussels
Tel:
(+ 32 2) 286 1711
Fax: (+ 32 2) 286 1750
Other
useful numbers
Small
Business Service (European Union and International
Section)
Robert
Kelly
Tel. 020 7215 0275/
Email: robert.kelly@sbs.gsi.gov.uk
Business
Links Signpost Line, Tel. 0845 6000 787 will put businesses
in touch with their nearest Business
Link.
Trade
Partners UK, Tel. 020 7215 5444/5445 will put
businesses in touch with trade promotion experts within
DTI.
The
Office
of Government Commerce – www.ogc.gov.uk, Tel.
020 7211 1334/1335 can advise about the EC procurement
rules.
The
British
Standards Institution – www.bsi.org.uk
Tel. 020 8996 9001 can advise about standards.
Last
revised on 22 April 2003
