Effect Of WTO Law in the EU and the Individual’s Right to Damages Caused By a Breach of WTO Law

Abstract:

The question of the legal status and effect of WTO law within the EU legal order is a controversial issue. For years the ECJ has firmly held the position that due to its nature and structure the WTO Agreement is not capable of having direct effect and does not in principle form part of the European courts’ legality review. At the same time, there are also fi erce debates among scholars about what kind of effect WTO law should have in the EU legal order. This paper analyses what kind of impact granting direct effect to the WTO Agreement would have on EU institutions and the EU in general, whether this could harm the EU and if there are some negative consequences, would the benefits arising outweigh the costs. Consideration is ultimately given to whether the WTO Agreement should be granted direct effect. Further, the paper analyses the possibilities for individuals to obtain compensation for damage caused by a breach of WTO law and stresses the need to increase the current level of judicial protection for individuals who have suffered great damage as incidental victims affected by retaliation resulting from a WTO dispute. Finally, given the present circumstances of the WTO system, the most appropriate solution to these issues is offered.