Document 0gM3Z1ZGr2BJRG8X3d0oMDZER

Wor ld Trade ORG/lNIZATION PLAINTIFF'S EXHIBIT WT/DS135/R 18 September 2000 (00-3353) EUROPEAN COMMUNITIES ME^ SURES AFFECTING ASBESTOS AND ASBESTOS - CONTAINING PRODUCTS Report ofthe Panel The report f the Panel on European Communities - Measures Affecting Asbestos and Asbestos ~ Containing , Products Is being circulated to all Members, pursuant to the DSU. The report is being circulated an unrestricted document from 18 September 2000 pursuant to the Procedures for the Circulation : ind Derestriction of WTO Documents (WT/L/160/Rev. 1). Members are reminded that in accordance vith the DSU only parties to the dispute may appeal a panel report. An appeal shall be limited to i sues of law covered in the Panel report and legal interpretations developed by the Panel. There shall be no exparte communications with the Panel or Appellate Body concerning matters under conai; leration by the Panel or Appellate Body. Note hv the S; cretarlah This Panal Report shall be adopted by the Dispute Settlement Body (DSB) within 60 days after the date of its cir: ilition unless a party to the dispute decides to appeal or the DSB decides by consensus not to adopt the report. If the Pad :! (port is appealed to the Appellate Body, it shall not be conaiderad for adoption by the DSB until after the completion o the appeal. Information on the cunent ttatus of the Panel Report Is available from die WTO Secretariat. / WT/DS135/R Pagei TABLE OF CONTENTS 1. IL A. B. HL A. B. 1. 2. 3. 4. 5. 6. 7. C. 1. 00 (b) 00 (0 () (d) (e) 2. (a) 00 0 m m 00 (d) $ w INT . iODUCTXON-........... ....I..........*..... Ease 1IKMItH FAC TUAL ASPECTS Bas: i : data concerning asbestos.................................................................................................................... 3 DecieeNo. 96-U33 of 24 December 1996 banning asbestos........................................ 3 ARC HJMENTS OF THE PARTIES____ ,,__________________________________________ __ ________ 5 CLA: I4S by the parties.......................................................................................................5 FAC UAL ARGUMENTS................................................................................................................................................... 6 Iotr ductory remark* Eco 1 omlc and trade data 10 Frei ich legislation In Its context ........................................ ..................... .................... Circ imstances of exposure to asbestos and asbestos-related pathologies --12 ---- 22 "Co 1 1trolled" or "safe" use of chrysotile asbestos___ ___ S3 Sub; titute fibres for chrysotile. The [NSERMreport.-------------- ----- 72 -- 86 LEG ! L ARGUMENTS......................................................................................................................... .................... 98 Agr: ement on Technical Barriers to Trade ("TBT" Agreement)iHnattMH*amMaaaiaaM-------99 Apf I icability ofthe TBT Agreement..............................................................................................................99 Arti le 2.1 of the TBT Agreement.................................................................................................................106 Arti; le 2.2 of the TBT Agreement.................................................................................................................108 Leg imate objective............................................................................................................................................ 108 "Fc i thispurpose, technical regulations shall not be more trade-restrictive than nec > tsary tofulfil a legitimate objective, taking account ofthe risks non-fulfilment wi ,d create ..." (Article 2,2, second sentence)......................................................................................109 Art i:le 2.4 of the TBT Agreement............................................................................................................... 135 Art 1 ile 2.8 of the TBT Agreement............................................................................................................... 146 Gei leral Agreement on Tariffs and Trade (GATT) MMaaaaaMiMM*MM*>aaaaaaaaMHaMaaaaaMMaM* 147 Ap) ilicability of Article HI and/or Article XI of the GATT.............................................................. 147 An :le HI;4 of the GATT............................................................................................................................... 152 Api I'ication ofArticle 111:4 ofthe GATT...................................................................................................152 Tht concept of "like products ".......................................................................................................................153 Inti' products ... shall not be subject to lessfavourable treatment................................. . 168 At icle XI of the GATT.................................................................................................................................... 171 Ar icle XX(b) of the GATT............................................................................................................................ 174 Na tre ofArticle XXand the burden ofproof.........................................................................................114 Pc cy toprotect human health......................................................................................................................175 WORLD TRADE ORGANIZATION appellate Body WT/DS135/AB/R Page 1 European < ommunities - Measures Affecting A foestoe and Asbestos-Containing Prodnets Canada, Apt rJlant/Appellee European Co mumities, Appellant/Appellee Brazil, Thin Participant United States, ThirdParticipant AB-2000-11 Present: Feliciano, Presiding Member Bacchus, Member Ehlennann, Member L Intri ilaction - 1. Cam i la appeals certain issues of law and legal interpretations developed in the Panel Report in Europear Communities - Measures Affecting Asbestos and Asbestos-Containing Products (the "Panel Repo J').1 The Panel was established to consider claims made by Canada regarding French Decree No. 96-1133 concerning asbestos and products containing asbestos (dicret no. 96-1133 rela'<fa l`interdiction de I'amiante, pris en application du code de travail *t du code de la consommatic11) ("the Decree"), which entered into force on 1 January 1991.1 2. Artie les l and 2 of the Decree set forth prohibitions on asbestos and on products containing asbestos fibr i, followed by certain limited and temporary exceptions from those prohibitions: Article 1 I. For the purpose of protecting workers, and pursuant to Article L. 231-7 of the Labour Code, the manufacture, processing, sale, import, placing on the domestic market and transfer under any title whatsoever of all varieties of asbestos fibres shall be prohibited, regardless of whether these substances have been incorporated into materials, products or devices. 'WT. >S135/R, IB September 2000. Vain1 al offlelel, 26 December 1996. WT/DS135/. 'B/R Page 2 II. For the purpose of protecting consumers, and pursuant to Article L. 221.3 of the Consumer Code, the manufacture, import, domestic marketing, exportation, possession for sale, offer, sale and transfer under any title whatsoever of all varieties of asbestos fibres or any product containing asbestos fibres shall be prohibited. III. The bans instituted under Articles I and II shall not prevent fulfilment of the obligations arising from legislation on the elimination of wastes. Article 2 I. On an exceptional and temporary basis, the bans instituted under Article 1 shall not apply to certain existing materials, products or devices containing chrysotile fibre when, to perform an equivalent function, no substitute for that fibre is available which: - On the one hand, in the present state of scientific knowledge, poses a lesser occupational health risk than chrysotile fibre to workers handling those materials, products or devices; - on the other, provides all technical guarantees of safety , corresponding to the ultimate purpose of the use thereof. II. The scope of application of paragraph I of this Article shall cover only the materials, products or devices falling within the categories shown in an exhaustive list decreed by the Ministers for Labour, Consumption, the Environment, Industry, Agriculture and Transport. To ascertain the justification for maintaining these exceptions, the list shall be re-examined on an annual basis, after which the Senior Council for the Prevention of Occupational Hazards and the National Commission for Occupational Health and. Safety in Agriculture shall be consulted. The remaii ng operative provisions of the Decree contain additional rules governing the grant of an exception <. Articles 3 and 4), the imposition of penalties for violation of the prohibition in Article 1 (Article 5 , and the temporary exclusion of certain "vehicles" and "agricultural and forestry machinery from aspects of the prohibition (Article 7). Further factual aspects of this dispute are set forth in p agraphs 2.1 - 2.7 of the Panel Report, and foe Decree is reproduced in its entirety as Annex I in he Addendum to the Panel Report3 3. Ci uada claimed that the Decree is inconsistent with a number of obligations of the European I Communities under Article 2 of the Agreement on Technical Barriers to Trade (the "TBTAgn y'.ment"). Articles HI and XI of die General Agreement on Tariffs and Trade 1994 (the "GATT 1< >4"), and that, under Article XXIII: 1(b) of the GATT 1994, the Decree nullified or1 1 r/DSl35/R/Add.l, pp. 3-6.