Brazil claimed that the European Union was dumping millions of used tires on its market, creating a greater risk of disease and environmental damage as the country had no means to effectively recycle the used tires.
Because Brazil allows such imports from South American countries, the WTO ruled that Brazil’s ban on the retreaded tires was, in fact, a restriction on international trade.
The EU demonstrated that in 2001, a year before Brazil adopted the ban, Europe exported more than 7,800 metric tons of retreads to Brazil, some 95% of all retreaded tires Brazil imported. By 2004, those exports dropped to 373 tons, or 16% of Brazil’s total.
However, Brazil complained that such retreads from Europe arrive after having undergone multiple retreadings, and cannot be viably retreaded again. This creates additional tire waste the country is ill-prepared to deal with.