The Nexus between State Liability Principle and WTO Law

Abstract

There are two functions of the state liability principle. The first is to secure individual rights (including economic rights) from a wrongful act conducted by a government, and the second is to compensate for damage caused by the infringement of individual right. Economic right is inherently allowing an individual to pursue economic interest both domestically or globally. In order to accommodate this right, a government is obliged to provide trade rules and mechanisms for every individual to conduct their global economic activities by participating in the WTO. The objective of the WTO significantly corresponds to the individual’s right in order to obtain trade benefits. Hence, when a government infringes trade rules and mechanisms underlined in WTO Law, it will directly restrict individuals from gaining trade benefits under the WTO or, moreover, it will restrain individuals from enjoying their inviolable economic rights. When the right is violated, and the damage occurs, it thus leads to the obligation for the government to compensate the damage according to the state liability principle. This article discusses the nexus between the state liability principle and WTO Law, in order to encourage national courts to exercise the function of state liability by referring to the infringement of economic rights caused by the violation of WTO Law.