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Case study 3 United States - Standards for Reformulated and Conventional Gasoline INTRODUCTION On 23 January 1995, the United States received a request from Venezuela to hold consultations under Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("General Agreement"), Article 14.1 of the Agreement on Technical Barriers to Trade ("TBT Agreement") and Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU"), on the rule issued by the Environmental Protection Agency on 15 December 1993, entitled "Regulation of Fuels and Fuel Additives - Standards for Reformulated and Conventional Gasoline" (WT/DS2/1). The consultations between Venezuela and the United States took place on 24…show more content…
2. The Panel found that imported and domestic gasoline were like products, and that since, under the baseline establishment methods, imported gasoline was effectively prevented from benefitting from as favourable sales conditions as were afforded domestic gasoline by an individual baseline tied to the producer of a product, imported gasoline was treated less favourably than domestic gasoline. So “Gasoline Rules” violated Art III:4 of GATT. 3. Because Article III:1 is a more general provision than either Article III:2 or III:4, it would not be appropriate for the Panel to consider the complainant’s Article III:1 allegations to the extent that the Panel were to find the respondent’s measures to be inconsistent with the more specific provisions of Articles III:2 and III:4.”The present Panel agreed with this reasoning, and therefore did not find it necessary to examine the consistency of the Gasoline Rule with Article III:1. 4. The Panel agreed with the parties that a policy to reduce air pollution resulting from the consumption of gasoline was a policy within the range of those concerning the protection of human, animal and plant life or health mentioned in Article XX(b). The baseline rules violating ArtIII:4 were not the necessary methods to protect lives or health of human, plants and animals, As such, they were not the type of measures with which Article XX(b) was concerned. 5. Maintenance of discrimination between imported and domestic gasoline contrary to
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