Case Commentary Essay Example | Topics and Well Written Essays - 1500 words

Case Commentary - Essay Example The bone of contention was that while domestic companies were allowed to set their own individual baselines, the foreign companies were not allowed to set their own baselines and had to comply with those established by the Act.12 The US government argued that while it was possible to evaluate the small number of domestic companies compliance with the Act based on their baselines, using the same approach for foreign companies that were more in number would place an unjustified quantitative pressure on the Environment Protection Agency (EPA). The statutory baselines for the foreign companies were, therefore, necessary to allow EPA function. They further argued that the Act was absolutely necessary and in compliance with Article XX for human health protection, clean air and conservation of exhaustible natural resources. This case was unique in that while it pursued the greater environmentalist goals, it was based on trade disputes thus its arbitration by the WTO appellate body was justified.34 On 24th January 1995, Venezuela requested a WTO address while Brazil did the same on 10th April 1995. The two countries alleged that the US Clean Air Act discriminated against their rights and violated the General Agreement on Tariffs and Trade (GATT) Articles 1 and 3, and Technical Barriers to Trade (TBT) Article 2. On 10th April 1995, a panel was set up to review the complaints and evidence presented by Venezuela. The panel was finally formulated on 26th April 1995. Upon a request from Brazil, a third panel was set up on 19th June 1995 to specifically review Brazilian complaints and evidence. On 31st may 1995 it was decided that the two panels reviewing Venezuelan and Brazilian evidences and complaints be coalesced into a single panel. The decision to coalesce the two panels was reached in accordance with Article 9 of the Dispute Settlement Understanding (DSU).56 The panel concluded its review and