An Agreement Prohibiting Trade Is A

30. The nature of the products covered by the agreements or practices also indicates whether trade between Member States may be affected. Where products can be marketed in a natural way that is easily cross-border or which are important for undertakings wishing to start or expand their activities in other Member States, Community justice is more easily founded than in cases where, by their nature, demand is limited for products offered by suppliers from other Member States or where the products are considered to be products of establishment cross-border or the extension of the economic activity carried out from that place of establishment (20). Establishment shall include the setting up of agencies, branches or subsidiaries by undertakings from one Member State to another Member State. In the United States, the Office of Foreign Assets Control, a Treasury department, administers economic embargoes. The Office plays a central role in tracing and freezing the sources of funding for terrorist and drug-related organizations. 103. Where the objective of the Agreement is to restrict competition within the Community, the necessary restriction of trade between Member States is easier than where most of the competition rules are outside the Community. In the first case, the agreement or practice has a direct impact on competition within the Community and on trade between Member States. Such agreements and practices, which may concern both imports and exports, are generally such as to affect trade between Member States.

(1) Articles 81 and 82 of the Treaty apply to horizontal and vertical agreements and practices concluded by undertakings which `may affect trade between Member States`. 64. Cartels such as those involving price fixing and market sharing in several Member States are, by their very nature, liable to affect trade between Member States. Cross-border cartels harmonise the conditions of competition and hinder the reciprocal penetration of trade by cementing traditional trade flows (45). If companies agree to assign geographic areas, sales from other areas to the affected areas can be eliminated or reduced. By agreeing on price fixing, companies put an end to competition and any resulting price differences, which would encourage competitors and customers to trade across borders. If companies agree on sales quotas, traditional trade flows will be preserved. The undertakings concerned renounce the expansion of production and, consequently, the assumption of responsibility for potential customers in other Member States.

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