Movement of goods and services across borders, trade blocks (within Essay

Movement of goods and services across borders, trade blocks (within Europe) - Essay Example The aim of the European Union was to develop a single market in Europe and enhance a free movement of goods and services from one country to another within the Union. The European Union also plays a significant role in enacting laws regarding home affairs and justice, maintaining common trade policies, and allowing free movement of people and capital. The internal goods and services market in Europe has become an essential part of EU’s success, and it is the main catalyst for economic growth in the region. Through the European Union, most of the barriers to free movement of goods and services have been eliminated. According to the Treaty on the Functioning of the European Union (TFEU), goods and services are defined as anything that is capable of forming the subject of commercial transaction. They include anything that has economic value and can be valued in terms of money. Things such as artworks, coins no longer in circulation, electricity, natural gas, bank notes and bearer notes have economic value that can be measured in monetary terms. Therefore, they can all be classified as goods. However, donation in kind and television signals is not considered as goods. In terms of distinction between goods and services, goods are tangible while services are intangible. For example, fishes are goods while fishing rights are serv ices. The free movement of goods and services is usually affected by barriers to trade. Article 34 of the Treaty on the Functioning of European Union (TFEU) provides guidelines on the obstacles to trade between member states. The article is used as a right of defense against measures developed on the national level to create unjustified barriers to entry or exit of goods and services to and out of member states (Woods, 2004). Activity of the state that may infringe section 34 of TFEU leads to prohibited obstacle to the free movement of goods and services. An administrative practice on the part of member