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Brazil Measures Affecting Imports of Retreaded Tyres:

Brazil Measures Affecting Imports of Retreaded Tyres: 2025

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The document analyzes the WTO Appellate Body's decision regarding Brazil's import ban on retreaded tyres, focusing on the economic and legal implications of Brazil's policies. It discusses the positive externalities associated with tyre retreading, evaluates various policy alternatives (such as production subsidies and tariffs), and critiques the Appellate Body's balancing tests under Article XX of GATT. The authors argue that Brazil's failure to enforce a ban on used-tyre imports undermines its environmental goals and that the Appellate Body's reasoning lacks coherence, particularly in assessing the necessity of Brazil's measures. The paper emphasizes the need for empirical data on externalities to inform rational policy judgments and suggests that WTO law does not adequately address environmental concerns related to trade.

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