. /.   WORLD TRADE  
ORGANIZATION  WT/DS332/19/Add.4 
10 July 2009 
 
 (09-3379) 
 Original:   English 
  
 
BRAZIL – MEASURES AFFECTING IMPORTS OF RETREADED TYRES 
 
Status Report by Brazil
 
 
Addendum  
 
  The following communication, dated 9 July 2009, from the delegation of Brazil to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 21.6 of the DSU.  
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Status Report Regarding Implementation of the
 
DSB Recommendations and Rulings in the Dispute  
Brazil – Measures Affecting Imports of  Retreaded Tyres  
(WT/DS332) 
  1. Brazil submits this report in accordance with  Article 21.6 of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes. 
 
2. On 17 December 2007, the Dispute Settlement Body ("DSB") adopted the Panel and the Appellate Body reports in Brazil – Measures Affecting Imports of Retreaded Tyres ( WT/DS332).  At 
the DSB meeting on 15 January 2008, Brazil informed  the DSB of its intention to implement the 
recommendations and rulings of the DSB. At the same meeting, Brazil stated that it would need a "reasonable period of time" to do so, according to Article 21.3 of the DSU. 
 
3. In January 2008, Brazil and the EC initia ted discussions with a view to agreeing on a 
"reasonable period of time".  The matter was refe rred to arbitration by the EC pursuant to 
Article 21.3(c) of the DSU on 4 June 2008.  The Ar bitrator was composed by the Director-General on 
26 June 2008.  The arbitration award, circulated  on 29 August 2008, established that the reasonable 
period of time for the implementation was 12 months.  
 4. As announced in Brazil's previous status reports in this dispute (WT/DS332/19;  WT/DS332/19/Add.1;  WT/DS332/19/Add.2;  WT/DS332/19/Add.3), Brazil's Supreme Court was in the final stages of deciding the judicial action file d by the Executive Branch (Allegation of Violation 
of Fundamental Precept – ADPF – No 101) to obtain a definitive ruling that prevents lower courts 
from issuing injunctions allowing imports of used tyres and revokes injunctions already granted.  
 5. On 24 June 2009, Brazil's Supreme Court reac hed a final decision on ADPF 101.  Eight out of 
nine Justices decided in favour of the Executive Branch's proposition that the importation of used 
tyres infringe on fundamental constitutional precepts re lating to the human rights to health and to a 
balanced environment, contained in Articles 170, 196 and 225 of the Constitution of the Federal WT/DS332/19/Add.4 
Page 2  
 
  Republic of Brazil.  More specifically, the reportin g Justice concluded – and was followed in these 
conclusions by seven of her peers involved in the judgment – that:  
• The regulations banning the importation of u sed tyres into Brazil are constitutionally 
valid; 
 
• Court decisions that allow the importation of used tyres violate the Federal 
Constitution and lose, retroactively and prospectively, any legal effects; 
 
• Court decisions that became res iudicata  also lose their legal effects, except for the 
entries of used tyres that already took place. 
 6. The outcome of ADPF 101 is in line with core values and principles that guide Brazil's 
constitutional order.  The Supreme Court decision supports a critical public policy pursued by the 
Brazilian Government to protect the Brazilian  population from the risks associated with the 
generation, transportation and accumulation of used tyres.  Within the legal framework provided by 
Article XX(b) of the GATT 1994, the Panel and the Appellate Body recognized the key role played 
by the prohibition on the importation of retreaded tyres for the success of such policy.  Brazil's 
Supreme Court reached a similar conclusion with rega rd to the importation of used tyres authorized 
by some lower courts and, in so doing, took an ex tremely important step to bring Brazil into full 
compliance with the recommendations and rulings  adopted by the DSB in this dispute. 
 
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