At the End of the Tunnel There is… Darkness: The European Court of Justice Denies EC Liability for WTO Non-Compliance

Abstract

On September 9, 2008, the European Court of Justice dismissed the appeals by two Italian companies – FIAMM Spa and Giorgio Fedon & Figli Spa – seeking compensation for damages suffered as a consequence of the US increased custom duties authorised by the WTO Dispute Settlement Body (DSB) in retaliation against the EC’s bananas preferential import duties regime. By holding that the EC cannot be called upon to compensate damages resulting from a failure of its institutions to comply with WTO rulings neither on the basis of a liability for unlawful conduct nor on the basis of a liability for lawful act, the ECJ seems to have definitely closed the door, at least de jure condito, to all attempts made by those traders hit by retaliatory measures to obtain some form of compensation from the Community.

Keywords: EU law, WTO law, DSB, non compliance, direct effect, invokability of DSB ruling

JEL Classification: K2, K32, K33, L5