Free Movement of Companies Under the New EU Free Trade Agreements
21 Pages Posted: 10 Oct 2015
Date Written: October 8, 2015
The EU has recently concluded a number of ambitious Free Trade Agreements (FTAs) that inter alia include the right to make establishments. Based on the agreements concluded with Korea, Singapore and Canada, it is examined to what extent these agreements secure a free movement of companies that is comparable with the free movement of companies that has been achieved within the EU. It becomes clear that the rules on freedom of establishment in Article 49 and 54 TFEU in many respects have been the model for the rules inserted in the FTAs. Nevertheless, it is concluded that the free movement secured by the FTAs is likely to be less advanced than in EU law. This conclusion is based on a number of reasons; that the scope of establishments covered by the FTAs is likely to be interpreted more restrictively, that the rights granted to companies under the FTAs are more limited and finally that private enforcement of the FTAs will be far more difficult than is the case under EU law.
Keywords: Free movement, companies, Free Trade Agreements
JEL Classification: K22
Suggested Citation: Suggested Citation