Pouring Fuel on the Fire? The WTO’s Reformulated Gasoline Case

Abstract

SummaryThe Reformulated Gasoline case is the latest decision in a series of recent WTO/GATT disputes dealing with environment and trade issues. The author analyzes the panel’s treatment of Article XX(g) and the Appellate Body’s reasons for rejecting the panel’s interpretation of that provision and substituting its own approach. He aho examines the Appellate Body’s attempt to give new life to the preamble (or chapeau) of Article XX. The author concludes that the Appellate Body’s revised interpretation of Article XX(g) is a significant and constructive departure from previous panel interpretations, but that the Appellate Body’s analysis of the wording in the preamble creates a logically flawed and overly restrictive test that is likely to render illusory the broadened scope it had previously given to Article XX(g).