| This thesis addresses the issue of international trade and environmental protection, more particularly within the framework of the GATT dispute settlement system. In May 1993, the European Union took issue with the U.S. taxes on automobiles aimed primarily at environmental concerns. The European Union claims that the gas guzzler tax, the luxury tax and the corporate average fuel economy (CAFE) payment are discriminatory and therefore contrary to the principles of GATT Article III.;The study of this dispute and the prospective analysis of its outcome show that both the gas guzzler tax and the luxury tax do not constitute a violation of the General Agreement. However, the CAFE payment violate the national treatment obligation and is not justified under the GATT general exceptions. The CAFE payment, despite that it is primarily aimed at fuel conservation, constitute a means of arbitrary and unjustifiable discrimination.;The outcome of this dispute confirms the permissiveness and limits of the GATT rules toward legitimate environmental policies. |
