Regional Intergovernmental Regulations on Trade in Services EU Law on Trade in Services The EU is a common market not only for goods but also for services and (as discussed later in the chapter) labor. In comparison with GATS, the Treaty Establishing the European Community (EC Treaty), and the Lisbon Treaty of 2010 are the principal source of law in the EU, and create a much more open and liberal market for services (and business in general) between and among its member states. The EC Treaty provides that, within the EU, “restrictions on the freedom to provide services”56 and “restrictions on the freedom of establishment”57 are to be progressively abolished. In essence, service suppliers and entrepreneurs have consistently acquired (as the EU integrates and EU law evolves) greater rights to do business in all EU member states. The EU freedom to provide services relates to economic activities carried out on a temporary or nonpermanent basis. It applies, for example, when a Danish firm of consultants advises businesses in Greece or an Italian construction company erects a building in Spain. The EU right of establishment authorizes a natural person or a company to settle permanently in a member state and carry on a business.58 It includes the right to set up and carry on a business both as an individual and as an employer.59 Concern has been expressed that some cases fall between the scope of both of these guarantees.60 An example would be a British camera crew filming scenes in France and Germany. Because the crew is neither establishing itself nor providing or receiving services, neither of the two guarantees fits exactly. However, in several cases, the European Court of Justice has read the two provisions together and hinted that it regards them as part of a general right of a self-employed person to pursue activities throughout the EU regardless of the location of his principal office or the kind of economic endeavor in which he is involved.61 To ensure that the right of establishment and the freedom to provide services are meaningful guarantees, the EC Treaty declares that the self-employed and the employees of service suppliers are entitled to travel freely within the member states of the EU and to carry on their activities free from discrimination.62 In order to “create a real internal services market by 2010” the EU enacted the so-called Services Directive in 2006 (Directive 2006/123/EC). This legislation aims to “facilitate freedom of establishment for providers in other Member States and the freedom of provision of services between Member States.” The directive (which was required to be implemented by all members by December 29, 2009) was intended to “increase the choice offered to recipients and improve the quality of services both for consumers and businesses using these services.” As often happens, all EU nations did not meet the deadline for enacting legislation implementing the directive. In June 2010, the EU Commission sen ...