Bridges Trade BioRes • Volume 5 • Number 22 • 9th December 2005
EU Requests Dispute Panel on Brazilian Retreaded Tyre Ban
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During a meeting of the Dispute Settlement Body (DSB) on 28 November 2005, the EU asked for the establishment of a WTO panel to determine whether a Brazilian import ban on retreaded tyres breaks WTO law. Brazil argues that the ban can be justified on environmental and human health grounds (see Bridges Trade BioRes, 8 July 2005). They point to the adverse affects of used tyres, including their slow decomposition rates, fire risks, contribution to the spread of viral diseases, contamination of air, water and soil when incinerated in tyre fires, high waste processing costs and their hazardous pollutant content. An investigation initiated by the EC on 7 January 2004 had found, after extensive examination of the Brazilian records, that the measures were not being applied equitably to all WTO Members — for example, it says that the import ban does not extend to MERCOSUR countries — and in some cases are applied to retreaded tyres that are not used and therefore are not linked to environmental and health risks. As a result, the EC on 20 June 2005 had requested consultations on the issue through the WTO Dispute Settlement Mechanism, arguing that the measure contravenes WTO rules on national treatment (under which a WTO Member must treat products produced in other WTO Members’ territories the same as those produced domestically), most-favoured-nation treatment (where the products from all WTO Members must be treated similarly) and quantitative restrictions (under which quantitative restrictions are restricted and cannot be applied differently to different Members) (WT/DS332/1). After consultations in July failed to resolve the issue, the EU decided to request that a dispute panel be created at the DSB meeting (WT/DS332/1), but Brazil blocked its establishment. According to Dispute Settlement Understanding procedures, Brazil can not block the establishment of a panel at the next meeting of the DSB, which is scheduled for 20 January 2006.
ICTSD reporting; “European Communities’ request for the establishment of a WTO Panel against Brazilian measures affecting imports of retreaded tyres - Factsheet”, BRAZILIAN PRESS RELEASE, 25 November 2005; “Brazil - Trade Barriers Complaint against Import Ban on Retreaded Tyres, Continuation of WTO Dispute” European Commission, 15 November 2005.
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