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Brazil—Measures Affecting Imports of Retreaded Tyres

WT/D83332/AB/R (Dec. 3, 2007)

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Brazil—Measures Affecting Imports of Retreaded Tyres

World Trade Organization, Appellate Body

WT/D83332/AB/R (Dec. 3, 2007)

Facts

Brazil (defendant) adopted an import ban on retreaded tires. The import ban was adopted as a part of an overall strategy to reduce tire waste. Brazil had determined that waste tires posed a risk to human, animal, and plant life due to mosquito breeding and related diseases and toxic emissions from tire fires. The process of retreading involved stripping off the worn tread from the skeleton or casing of the tire and replacing it with new tread. Generally, according to international standards, most tires could only be retreaded one time. Therefore, imported retreaded tires were closer to becoming waste than new tires. As part of the overall program, Brazil also banned the import of used tires and adopted requirements for domestic manufacturers and importers to provide for the safe disposal of tires. However, Brazil also adopted an exemption to the import ban for imports from Mercado Común del Sur (MERCOSUR), which was made up of countries in a free-trade area in South America. The European Communities (plaintiff) challenged the import ban and alleged that it violated the General Agreement on Tariffs and Trade (GATT). The GATT Panel determined that the import ban mostly met the requirements as a measure to protect health but violated the nondiscrimination requirement in the chapeau of Article XX(d). Brazil appealed to the World Trade Organization Appellate Body.

Rule of Law

Issue

Holding and Reasoning

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