When Domestic Environmental Policy Meets International Trade Policy: Venezuela's Challenge to the U.S. Gasoline Rule

The role of the World Trade Organization (WTO) in the setting and enforcement of international and domestic environmental policy continues to evolve. This paper reviews the first case that focused clearly on environmental issues that involved WTO mediation: the case of Venezuela's challenge of the legality of United States restrictions on the importation of gasoline based on requirements to reduce health risks under the Clean Air Act. In this case, the WTO deemed the U.S. Environmental Protection Agency's policy as a barrier to free trade and this has important implications for future policies. We explore the underlying issues of the decision and its implications for future cases that focus on environmental risks.