European Court rejects damages claim from innocent bystanders in the EU-US "Banana War"
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American Society of International Law (ASIL) Insight, October 22, 2008, Volume 12, Issue 21
Abstract
On September 9, 2008, in Joined Cases C-120/06 P and C-121/06 P FIAMM and Giorgio Fedon & Figli v Council and Commission, the European Court of Justice (ECJ) dismissed appeals by two Italian companies seeking compensation for damages caused after the WTO Dispute Settlement Body (DSB) authorized the United States to suspend tariff concessions against the European Community (EC) as a sanction against the EC’s banana import regime. The ECJ held that the EC cannot be called upon to compensate damages resulting from a failure of its institutions to comply with WTO rulings – neither based on liability for unlawful conduct, nor based on liability for a lawful act. In so doing, the ECJ seems to have definitely closed the door, at least for now, to all attempts by traders hit by retaliatory measures to obtain some form of compensation from the Community.
Keywords
WTO, EU law, direct effect, DSS, liability for lawful conduct, liability for unlawful conduct, retaliatory measures
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