RESTRICTED
WORLD TRADE WT/DS4/2
22May 1995
ORGANIZATION
(95-1343)
Original: English
UNITED STATES -STANDARDS FOR REFORMULATED
AND CONVENTIONAL GASOLINE
Request forEstablishment ofaPanel byBrazil
Thefollowing communication dated 19May 1995 from thePermanent Mission ofBrazil to
theDispute Settlement Body (DSB), iscirculated toMembers.
_______________
1. With reference todocument WT/DS4/1, dated 12April 1995, Ihereby inform youthat
consultations between theGovernments ofBrazil andoftheUnited States onStandards forReformulated
andConventional Gasoline tookplace inGeneva on1May 1995. Unfortunately, ithasnotbeen possible
tofindasatisfactory solution fortheissue raised byBrazil regarding theapplication oftheabove-
mentioned Regulation bytheUnited States.
2. TheGovernment ofBrazil hastherefore decided torequest theestablishment ofapanel, at
thenextmeeting oftheDispute Settlement Body, pursuant toArticle XXIII ofGATT 1994, Article 14
oftheAgreement onTechnical Barriers toTrade andArticles 4and6oftheUnderstanding onRules
andProcedures Governing theSettlement ofDisputes (DSU).
3. With aview toward harmonizing thescheduling ofthismatter with thatofthesimilar complaint
byVenezuela, ascontemplated inArticles 9.1and9.2oftheDSU, Brazil requests thattheterms of
reference contained indocument WT/DS2/3 beamended soastoinclude amention tothedocument
attached herewith, itbeing understood thatallrights ofBrazil intheproceeding areinnowayimpaired.
4. TheMission ofBrazil kindly asks youtoinclude thisrequest intheagenda ofthemeeting of
theDispute Settlement Body scheduled for31May 1995 andtocirculate theattached communication.
. /.WT/DS4/2
Page 2
UNITED STATES -STANDARDS FOR REFORMULATED
AND CONVENTIONAL GASOLINE
Request forEstablishment ofaPanel under Article XXIII oftheGATT 1994
andArticle 14oftheAgreement onTechnical Barriers toTrade
On10April 1995 Brazil requested thattheUnited States enter intoconsultations concerning
thediscriminatory application ofthe"Regulation ofFuels Additives: Standards forReformulated and
Conventional Gasoline" ("Gasoline Regulation"). Inaccordance with Article 4oftheUnderstanding
onRules andProcedures Governing theSettlement ofDisputes ("DSU"), thatrequest wascirculated
toMembers oftheWorld Trade Organization on12April 1995 (WT/DS4/1).
Brazil requested consultations because itbelieved thattheGasoline Regulation, which became
effective on1January 1995, denies national treatment togasoline imported from Brazil. Since the
Gasoline Regulation hasbecome effective, Brazil 'sexports ofgasoline totheUnited States have declined
sharply, nullifying andimpairing benefits duetoBrazil under both GATT 1994 andtheAgreement
onTechnical Barriers toTrade ("TBT Agreement").
TheUnitedStatesandBrazilheldconsultationsinGenevaon1May1995withaviewtoreaching
amutually satisfactory resolution ofthematter.
Unfortunately, theconsultations failed tosettle thedispute. Theparties have agreed thatfurther
consultations arenotlikely tobeproductive and, with aview towards harmonizing thescheduling of
thismatterwiththatofthepanelpreviouslyestablishedwithregardtothesimilarcomplaintofVenezuela,
ascontemplated byArticle 9oftheDSU, Brazil hereby requests thatapanel beestablished atthenext
meeting oftheDispute Settlement Body, pursuant toArticle XXIII ofGATT 1994, Article 14ofthe
TBT Agreement, andArticles 4and6oftheDSU.
Brazil requests thatthePanel consider andfindthat:
(a) TheGasoline Regulation isinconsistent with themost-favoured-nation obligations of
Article IoftheGATT;
(b) TheGasoline Regulation isinconsistent with theNational Treatment obligations of
Article IIIoftheGATT;
(c) TheGasoline Regulation isinconsistent with Article 2oftheAgreement onTechnical
Barriers toTrade.
Brazil requests thatthePanel beestablished with thestandard terms ofreference assetout
inArticle 7oftheDSU.
Brazil further requests thatthisrequest fortheestablishment ofaPanel beinscribed onthe
agenda ofthenext meeting oftheDSB on31May 1995.