In the case at issue1, the complainant was the European Communities and the respondent was Brazil.

2 Taking into account only the economic dimension, the aggrieved party would be the European Communities by a restriction of imports of retreaded tires in Brazil. However, this is a case where the environmental factor and human protection plays a key role in the accounting of the end welfare. In short, the case is based on two main arguments: the restriction of imports of retreaded tires to Brazil and EC, and, as a counter-argument, exceptions of Article XX of the GATT in relation to the protection of the environment and human protection. In this context it is possible to question three aspects: - The direct economic results arising from the import restriction measure - How to measure the real welfare considering environmental factors and the protecting of human health - The competence of the WTO in relation to cases that integrate a dispute based on environmental and health factors - The necessity of harmonious regulations between member states of an agreement. 3 According to XXX, the result would be in direct economic As explained (in part Karla), environmental factors and human protection have key roles in the context of Brazil, so ... The competence of the WTO is not directly related to environmental factors of the case, but concerning the international trade. Environmental factors are an incidental matter that, however, must be taken into account in solving international trade disputes and its importance has been increasingly recognized. Notwithstanding, because it is not the core competence of WTO, the body does not regulate it properly: only resolves matters incidentally and as exception, and yet, even with little experience and jurisprudence. In the case of retreated tires, the WTO decided in favor of the argument based on the art. XX GATT to Brazil, which represented an important step in the jurisprudence und understanding of international trade. Nevertheless, the lack of harmonization of the member states of Mercosur and the outcome of the Permanent Court of Revision of Mercosur against imports restriction of retreaded tires in Brazil coming from Uruguay violated Art. I, GATT, which contains the principle of Most-Favored Nation4, led to a WTO unfavorable ruling to Brazil, which had to cancel this restriction on import of tires of the European Union.

1 2

WTO Dispute DS332: Brazil Measures Affecting Imports of Retreaded Tyres. http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds332_e.htm 3 Slud, Esther; Weinberg Crocco, Fabio (2009). Caso dos Pneus: um exemplo de como decises tomadas em diferentes esferas de poder interagem. Available at: <http://ictsd.org/i/news/pontes/48412/>. 4 http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm

The negative impact of this decision to Brazil, although the methodology of measurement is still under development, is much bigger and more serious than the economic impact to the European Communities if the case was resolved differently.