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Financial Liability of the EU for Violations of WTO Law – A Legislative Proposal Benefiting Innocent Bystanders

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Chapter Summary

This chapter discusses whether the EU exporters, who suffer damages when they run into retaliatory trade restrictions in third countries, provoked by EU measures that have been found to violate WTO law, be entitled to claim damages from the EU?. It concerns the liability the EU might incur in case it could be said that individuals suffer losses because the EU has violated WTO rules. More in particular, are individuals entitled to financial compensation from the EU institutions if they suffer injury due to an EU act which was considered to be WTO-inconsistent by the DSB? The chapter advocates that the EU institutions design an adequate compensation scheme for innocent bystanders through legislation. The concern that a general liability scheme for no-fault legislation would trigger a flood of damage claims, could be remedied through an arrangement specifically tailored towards cases arising under the WTO.

Keywords: compensation scheme; damage claims; EU; injury; innocent bystanders; liability; no-fault legislation; WTO law



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