Wto Case Study

2090 words 9 pages
Case study 3
United States - Standards for Reformulated and
Conventional Gasoline

INTRODUCTION

On 23 January 1995, the United States received a request from Venezuela to hold consultations under Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("General Agreement"), Article 14.1 of the Agreement on Technical Barriers to Trade ("TBT Agreement") and Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU"), on the rule issued by the Environmental Protection Agency on 15 December 1993, entitled "Regulation of Fuels and Fuel Additives - Standards for Reformulated and Conventional Gasoline" (WT/DS2/1).

The consultations between Venezuela and the United States took place on 24
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Accordingly, Venezuela and Brazil asked the Panel to recommend that the United States take all necessary steps to bring the Gasoline Rule into conformity with its obligations under the General Agreement and the TBT Agreement. Venezuela requested the Panel to recommend that the United States amend the Gasoline Rule to provide treatment for gasoline imports no less favourable than that accorded to US produced gasoline.

The United States requested the Panel to find that the Gasoline Rule was: (a) Consistent with Articles I and III of the General Agreement 1994; (b) Falling within the scope of Article XX (b), (d), and (g) of GATT 1994; (c) Consistent with the Agreement on Technical Barriers to Trade.

FINDINGS

1. In the present case, the Panel’s terms of reference were established after the 75 percent rule had ceased to have any effect, and the rule had not been specifically mentioned in the terms of reference. The Panel further noted that there was no indication by the parties that the 75 percent rule was a measure that, although currently not in force, was likely to be renewed. Finally, the Panel considered that its findings on treatment under the baseline establishment methods under Articles III:4 and XX (b), (d) and (g) would in any case have made unnecessary the examination of the 75 percent rule under Article I:1. The Panel

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