Mr. Declan Smyth:

The derogation in relation to public policy in the areas set out in the treaties relates to the freedom of member states to regulate trade in goods, services and so on within the Internal Market. The public policy derogation that applies in those fields has been extended by specific legal Acts to, for instance, external trade, which is an area of exclusive competence of the Union. An internal market in goods, however, is not an exclusive competence of the Union unless the Union has adopted a legal Act to occupy the field. It is a different concept of, or approach to, exclusive competence.