BRAZIL – MEASURES AFFECTING IMPORTS OF RETREADED TYRES
Document: Status Report by Brazil Addendum
Date: 15 September 2009
Document codes: WT/DS332/19/Add.6
Complainant: EU
Respondent: Brazil
Third parties: Argentina, Australia, China, Cuba, Guatemala, Japan, South Korea, Mexico, Paraguay, Taiwan, Thailand, U.S.
Dispute stage: Appellate Body
Agreements cited: Art. I:1, III:4, XI:1, XIII:1  GATT 1994

BRAZIL – MEASURES AFFECTING IMPORTS OF RETREADED TYRES

Status Report by Brazil

Addendum

 The following communication, dated 14 Septembe r 2009, from the delegation of Brazil to the
Chairman of the Dispute Settlement Body, is circulated pursuant to Article 21.6 of the DSU.

Status Report Regarding Implementation of the

DSB Recommendations and Rulings in the Dispute

(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 ( 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 initiate d 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 Arbitr ator 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 previous status reports in this dispute, on 24 June 2009 Brazil's Supreme
Court found that the importation of used tyres violates fundamental precepts enshrined in Brazil's
Constitution, including the rights to health and to a balanced environment. Thus, lower courts'
decisions authorizing the importation of used tyres into Brazil have lost their legal effects.
5. The Supreme Court's decision was sought by the Executive Branch in order to enhance
Brazil's environmental and public health policy rela ting to the risks associated with the generation,
transportation and accumulation of used tyres. As Br azil explained in previous status reports, such
decision constituted a major step taken by Brazil to achieve full compliance with the
recommendations and rulings adopted by the DSB in this dispute.

6. Following this decision and in line with an Op inion by the Union's Attorney General Office,
Brazil's Secretary of Foreign Trade issued a ne w regulation, Portaria SECEX 24/2009, which was
published in the Official Gazette on 28 August 2009. This regulation prohibits new licenses for the
importation of used and retreaded tyres to be issued , irrespective of their origin. Previous regulations
allowed the importation of a limited amount of a specific category of retreaded tyres from other
Mercosul countries. Taken together, the Supr eme Court ruling and Portaria SECEX 24/2009
eliminated the aspects of the application by Brazil of its import ban on retreaded tyres that had been
considered inconsistent with trade disciplines by the Appellate Body. Brazil is therefore in full
compliance with the DSB recommendations and rulings in this dispute.