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ICTSD InformaTIon noTe no. 1, SePTemBer 2010
Litigating environmental Protection and Public Health at the WTo: The Brazil-retreaded Tyres Case
ICTSD Project on WTo Jurisprudence and Sustainable Development
Introduction
In late 2007 the Appellate Body report on the landmark case Brazil – Measures Affecting Imports of Retreaded Tyres (DS332) 1 between the EC as Complainant and Brazil as Respondent was circulated. In response to the EC’s challenges, Brazil had argued that its measures were justified under GATT Article XX (b) which allows measures “necessary to protect human, animal or plant life or health”. Even though the Appellate Body eventually ruled that the measures were WTO inconsistent, the case constitutes a major landmark ruling and is often considered as a great success for environmental policies. In response to the ruling, experts such as Professor Joost Pauwelyn found that “the WTO has truly become an environmental treaty with Art. XX as a catch-all obligation to engage in sound and reasonable environmental policies”. 2 Moreover, the case has clarified several aspects of the Article XX necessity test that are of crucial importance for developing countries. First and foremost the case clarified that the decision regarding the meaning of and ruling on “undue burden” needs to be determined based on a country’s capabilities, i.e. the degree of development within a country needs to be considered.
Background: Global Trade in Used and retreaded Tyres
Retreading tyres is a way of recycling used tyres in which the life of the original tyre is extended by 30-100%. In that process, used tyres are reconditioned for further use by stripping the worn tread from the skeleton and replacing it with new material in the form of a new tread. Although recycling used tyres through retreading is generally environmentally friendly because it expands the overall lifespan of a tyre, international trade in already retreaded tyres can negatively impact the environment
Litigating environmental Protection and Public Health at the WTo: The Brazil-retreaded Tyres Case
ICTSD Project on WTo Jurisprudence and Sustainable Development
Introduction
In late 2007 the Appellate Body report on the landmark case Brazil – Measures Affecting Imports of Retreaded Tyres (DS332) 1 between the EC as Complainant and Brazil as Respondent was circulated. In response to the EC’s challenges, Brazil had argued that its measures were justified under GATT Article XX (b) which allows measures “necessary to protect human, animal or plant life or health”. Even though the Appellate Body eventually ruled that the measures were WTO inconsistent, the case constitutes a major landmark ruling and is often considered as a great success for environmental policies. In response to the ruling, experts such as Professor Joost Pauwelyn found that “the WTO has truly become an environmental treaty with Art. XX as a catch-all obligation to engage in sound and reasonable environmental policies”. 2 Moreover, the case has clarified several aspects of the Article XX necessity test that are of crucial importance for developing countries. First and foremost the case clarified that the decision regarding the meaning of and ruling on “undue burden” needs to be determined based on a country’s capabilities, i.e. the degree of development within a country needs to be considered.
Background: Global Trade in Used and retreaded Tyres
Retreading tyres is a way of recycling used tyres in which the life of the original tyre is extended by 30-100%. In that process, used tyres are reconditioned for further use by stripping the worn tread from the skeleton and replacing it with new material in the form of a new tread. Although recycling used tyres through retreading is generally environmentally friendly because it expands the overall lifespan of a tyre, international trade in already retreaded tyres can negatively impact the environment