ERJ staff report (DS)
Geneva -- The highest court in the World Trade Organisation (WTO) has upheld a ruling that Brazil's proposed ban on retreaded tyre imports from the EU is illegal.
Judges confirmed a 12 June ruling that the restriction of these imports was unjustified, on the grounds that Brazil permits the import of tyre casings which are subsequently used for retreading in the country. Thus, it would be unfair to limit imports of the finished product. In addition, Brazil permits such imports from other South American countries
Brazil claimed Europe was using Brazil as a means to export scrap tyres, instead of disposing of them properly.
Europe said trade in retreaded tyres with Brazil has suffered as a result of the dispute. Although no ban is in place following a series of legal moves, the EU said EU exports of tyre casings to brazil had fallen to 373 tonnes in 2004, from 7800 tonnes in 2001, before the ban was proposed. This represents a decline in total Brazilian share to 16 percent from 95 percent.
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Press releases and statements from WTO
WTO finds Brazil illegally blocked used tires from Europe International herald tribune