Published online by Cambridge University Press: 26 January 2006
The dispute settlement system of the European Community (EC) is undeniably much more elaborate than that of the World Trade Organization (WTO). The reasons for this are evident. First, unlike the WTO the EC, being a supranational organization, has the competence to adopt legislative and administrative acts in its own right. Democratic principles require that the legality of these acts can be examined by a judicial body. Second, legislative and administrative acts of the EC frequently have a direct impact on EC citizens. It would be contrary to democratic principles if citizens affected by legislative or administrative acts of the EC were not able to have the legality of such measures examined by a judicial body. By way of contrast, the inter-State nature of WTO proceedings is such that its dispute settlement system is exclusively open to WTO Members. Third, the EC institutions are capable of beginning legal proceedings against each other and against EC Member States. In particular, if the EC Commission considers that an EC Member State has failed to fulfill an EC Treaty obligation, it may bring the matter before the ECJ. In WTO law, there is no opportunity for inter-institutional proceedings or proceedings between the WTO and its Members.