Legal Effect of WTO Dispute Settlement Body Decisions on the European Union Law Cover Image

Pasaulio prekybos organizacijos ginčų sprendimo tarybos sprendimai Europos Sąjungos teisės sistemoje
Legal Effect of WTO Dispute Settlement Body Decisions on the European Union Law

Author(s): Inga Daukšienė
Subject(s): Law, Constitution, Jurisprudence
Published by: Mykolas Romeris University
Keywords: the Court of Justice of the European Union; WTO Dispute Settlement rulings; DSB decisions; direct effect

Summary/Abstract: World Trade Organization (WTO) Agreement includes the Annex 2 Dispute Settlement Understanding (DSU) that reveals with WTO dispute settlement rules and procedures. The Dispute Settlement Body (DSB) is hereby established to administer these rules and procedures. The article analyses the problematic issues of the direct effect of the DSB decisions in the European Union (EU) legal order. ECJ concluded that an individual does not have the right to challenge, the incompatibility of Community measures with WTO rules, even if the DSB had previously declared the EU legislation to be incompatible with those rules. The position of the ECJ is based on the WTO dispute settlement system specifics—the importance of the negotiation between the parties, even after the DSB decision-making and lack of reciprocity, which means that major commercial partners of the EU does not recognize the direct effect of DSB decisions. The ECJ position and arguments cause disputes among the effect of DSB decisions on the EU legal order. Some authors agree with the ECJ position and provide additional arguments. For example, the direct effect of DSB decisions in EU law could damage the prerogative jurisdiction of ECJ to interpret EU law. In addition to this, some authors claim that the DSB is not a court because it does not comply with requirements of judicial institution. Other authors disagree with the position of the ECJ and provide persuasive arguments that doubt the position of the ECJ. The article analyses in more detail the arguments of ECJ as well as submit the scientific discourse identifying and assessing the pros and cons of the direct effect of the DSB decisions in EU law.

  • Issue Year: 18/2011
  • Issue No: 3
  • Page Range: 905-920
  • Page Count: 16
  • Language: Lithuanian