This presentation gives basic information about World Trade Organization. it shows various aspects of WTO. It also contains a case study of United States based on gasoline followed by panel discussion views regarding the case study.
2. About WTO
An intergovernmental organization that is concerned with the regulation
of international trade between nations.
Officially commenced on 1 January 1995.
Signed by 124 nations on 15 April 1994, replacing the General Agreement
on Tariffs and Trade (GATT), which commenced in 1948.
At present – 164 members
It is the largest international economic organization in the world.
Purpose: Reduction of tariffs and other barriers to trade.
Headquarters: Geneva, Switzerland
3.
4. Case study: United States – Gasoline
The Clean Air Act required US Environmental Protection Agency (EPA) to
regulate fuels and fuel additives that are used in motor vehicle engines, or non-road
vehicle engines if such fuel, fuel additives or any emission products cause or
contribute to air or water pollution that may endanger the public health or welfare.
The US Environmental Protection Agency (EPA) promulgated the Gasoline Rule
on the composition and emission effects of gasoline in order to reduce air pollution
in the United States.
The Gasoline Rule permitted only gasoline of a specified cleanliness (reformulated
gasoline) to be sold to consumers in the most polluted areas of the country.
Reformulated gasoline (RFG) is gasoline blended to burn more cleanly than
conventional gasoline and to reduce smog-forming and toxic pollutants in the air we
breathe.
5. The RFG program was mandated by Congress in the 1990 Clean Air Act
amendments.
RFG is required in cities with high smog levels and is optional elsewhere or in the
rest of the country, only gasoline no dirtier than that sold in the base year of 1990
(conventional gasoline) could be sold.
The Gasoline Rule applied to all US refiners, blenders and importers of gasoline. It
required any domestic refiner which was in operation for at least six months in 1990
to establish an individual refinery baseline, which represented the quality of gasoline
produced by that refiner in 1990.
EPA also established a statutory baseline, intended to reflect average US 1990
gasoline quality. The statutory baseline was assigned to those refiners who were not
in operation for at least six months in 1990, and to importers and blenders of
gasoline.
6. Panel View:
Venezuela and Brazil claimed that the Gasoline Rule was inconsistent with
GATT Article III, and was not covered by Article XX.
The United States argued that the Gasoline Rule was consistent with Article
III, and, in any event, was justified under the exceptions contained in Article
XX, paragraphs (b), (g) and (d).
The Panel found that the Gasoline Rule was inconsistent with Article III, and
could not be justified under paragraphs (b), (d) or (g).
On appeal of the Panel's findings on Article XX (g), the Appellate Body found
that the baseline establishment rules contained in the Gasoline Rule fell within
the terms of Article XX (g), but failed to meet the requirements of Article XX.