End to Internal Trade Barriers in the EU: Commission’s Plan Unveiled

In a bold initiative, EU Industry Commissioner Stefan Sejourne aims to make the internal market the central driver of European competitiveness. As exports from the US and China face pressures due to international trade conflicts, Brussels is refocusing on its primary mission: expanding the European market by removing trade barriers between member states. A strategic document, obtained by Handelsblatt and expected to be published on May 21, anticipates lifting internal market barriers caused by national laws or businesses. To achieve this, there will be swift infringement procedures against member states and legislation against territorial supply restrictions by major brand manufacturers. Additionally, a digital product passport is planned to help companies comply with bureaucratic requirements. According to the European Commission, even a modest increase in intra-EU trade could offset a significant drop in exports to third markets. The Commission also plans to intervene in national legislation in certain cases, targeting ‘gold plating’—national laws exceeding EU requirements and creating new market obstacles. Furthermore, a new ‘Single Market Enforcement Act’ is designed to prevent new barriers from being introduced initially. The Commission targets large brand manufacturers’ pricing power with a law against ‘territorial supply restrictions,’ allowing retailers to buy products where they are cheaper in the EU and sell them cross-border. Globally, the EU seeks stronger protection for the internal market from unfair competition, particularly from state-subsidized excess production capacity in China and trade diversion due to the US trade conflict. Measures include stricter trade defense measures and justified tariffs. The Commission also introduces a digital product card as a key tool for modernization, providing digital labeling, compliance documents, instructions, safety information, and all legally required data. This will first apply to batteries and other product categories from 2027. Initiatives for construction and installations sectors are also planned for 2026.