Discuss this articleShare your views with other visitors, and read what they have to say
Brazil has lost a WTO challenge against its import restrictions on retreaded tyres. The EU had contended that the import limitations were motivated by a desire to protect the local tyre industry rather than by an attempt to pursue genuine public health objectives. The dispute settlement panel’s report, released on 12 June, confirmed a confidential interim ruling (see BRIDGES Weekly, 14 March 2007, http://www.ictsd.org/weekly/07-03-14/story2.htm).
Despite the panel’s call for it to change its policies, the Brazilian government welcomed the decision. Officials noted that the panel had accepted the health- and environment-related justifications for restrictions on the import and stockpiling of used and retreaded tyres, objecting only to the way in which the measures were applied.
Indeed, some trade lawyers expressed surprise at the extent to which the panel agreed with Brasilia’s arguments and left the door open for it to maintain many of the limitations with only minor modifications.
The case, which represents the first-ever challenge against trade restrictions imposed by a developing country for health and environmental reasons, has been closely watched by environmental groups.
For a full report on the panel ruling, see Bridges Weekly at http://www.ictsd.org/weekly/07-06-20/story3.htm.
The 245-page WTO report (WT/DS332/R) is available on http://docsonline.wto.org/
ICTSD reporting; “Panel Faults Brazil in Tyres Dispute,” BRIDGES Monthly Review 11(4), June 2007 (forthcoming).
Add a comment
Enter your details and a comment below, then click Submit Comment. We’ll review and publish the best comments.