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Lorna Woods examines the framework for commercial activity within the European Community provided by the central provisions on free movement of goods and services. After providing a general introduction to the internal market in the light of revisions to the overall EC Treaty framework, she discusses the scope of commercial activity protected, the principles underlying the relevant provisions and their application to the field of goods and services, and exceptions to the principles of free movement of goods and services which allow member states to restrict trade. The interrelationship between the negative freedoms and positive harmonization is also examined.