> To enable free movement of goods and services the EU insists that the goods and services are produced in an identical regulatory environment.

Doesn't seem to be true anymore, at least in every case. See the EU-Mercosur agreement for one recent exception to this, the goods we're now importing from South America don't have the same regulatory environment by far, to many of our local farmers.

EU - Mercosur is not free movement of goods and services.