Energy security, gatt/wto, and regional agreements

Natural Resources Journal

Volumn 49, Issue 2, 2009, Pages 433-484

  Shih, Wen Chen ^a  

^a Department of International Business   (Taiwan)

Author keywords

[No Author keywords available]

Indexed keywords

ENERGY PLANNING; ENERGY POLICY; ENERGY RESOURCE; GATT; NAFTA; POLICY MAKING; QUANTITATIVE ANALYSIS; WORLD TRADE ORGANIZATION;

NORTH AMERICA;

EID: 77954100383     PISSN: 00280739     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (250)

1. See 2008 Key World Energy Statistics, IEA REPORTS 11, 13, available at http://www.iea.org/textbase/nppdf/free/2008/key-stats-2008.pdf. For example, according to the statistics of the International Energy Agency (IEA), the top 10 crude oil producing countries accounted for 61.6 percent of world crude oil production in 2007 and their combined exports account for 65.32 percent of total world export in 2006.
2. Id. The top 10 natural gas producing countries accounted for 64.5 percent of world natural gas production in 2007, and their combined export accounted for 75.57 percent of total world export in 2007.
3. Id.
4. According to the 2008 Key World Energy Statistics, the top 10 oil-producing countries are Russia, Saudi Arabia, the United States, Iran, China, Mexico, Canada, Venezuela, Kuwait, and United Arab Emirates.
5. Id. at 11. As for the membership of the WTO, please visit the "members and observers" section of the official WTO website at: http://www.wto.org/english/thewto-e/whatis-e/tif-e/org6-e.htm.
6. For information on the OPEC countries, please visit the official OPEC website at http://www.opec.org/aboutus. As for the status of countries that are in the WTO accession negotiation, please visit the "accession" section of the official WTO website at http://www.wto.org/english/thewto-e/acc-e/acc-e. htm.
7. Melaku Geboye Desta et al., The Organization of Petroleum Exporting Countries, the World Trade Organization, and Regional Trade Agreement, 37 J. OF WORLD TRADE 523, 532 (2003).
8. Desta et al., supra note 4, at 538-39.
9. U. S. Energy Association, National Energy Security Post 9/11, 7 (2002), available at http://www.usea.org/Publications/Documents/USEAReport.pdf.
10. Catherine Redgwell, International Energy Security, in ENERGY SECURITY: MANAGING RISK EM A DYNAMIC LEGAL AND REGULATORY ENVIRONMENT, 17 (Barry Barton et al., ed., 2005).
11. According to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) in February 2007, "Most of the observed increase in globally averaged temperatures since the mid-20th century is very likely due to the observed increase in anthropogenic greenhouse gas concentrations." IPCC, CLIMATE CHANGE 2007: THE PHYSICAL SCIENCE BASIS SUMMARY FOR POLICYMAKERS, 10 (2007), available at http://ipcc-wg1.ucar.edu/wgl/docs/WGlAR4-SPM-Approved- 05Feb.pdf.
12. U. N. DEVELOPMENT PROGRAMME, WORLD ENERGY ASSESSMENT: OVERVIEW 2004 UPDATE, 42, (2004), available at http://www.undp.org/energy/docs/WEAOU-full.pdf;
13. see Black, Alexander J., Environmental Impact Assessment and Energy Export, 16 LOY. L. A. INT'L & COMP. L. REV. 799 (1994).
14. Stacey L. Middleton, How the Petroleum Addict Negotiates with the Dealer: Challenges to the Bush Administration's North American Energy Policy, 11 CARDOZO J. OF INT'L & COMP. L. 177, 180 (2003).
15. Robert Pritchard, Global Energy Security and Middle East Oil, 2006 INT'L ENERGY L. & TAX'N REV. 13, 13 (2006).
16. Ambuj D. Sagar et al., Climate Change, Energy and Developing Countries, 7 VT. J. OF ENVTL. L. 4, Part III (2005).
17. Edward L. Morse, A Rational International Petroleum Regime for the 1990s, 27 TULSA L. J. 479, 491 (1992).
18. See IEA, 2006 Key World Energy Statistics, IEA Reports, at 19, available at http://www.iea.org/textbase/nppdf/free/2006/key2006.pdf. For example, hydropower only accounted for 16.1 percent of the total sources of energy in 2004.
19. Id.
20. For example, import tariffs and internal taxes and charges on the import of mineral fuels should not be raised to the level that might reduce the income of such exporting countries.
21. The problem of tariff escalation is a good case in point.
22. See Thomas W. Walde & Andreas J. Gunst, International Energy Trade and Access to Energy Network, 36 J. WORLD TRADE 191, 191 (2002). Only electricity and natural gases are referred to in this article; however, the prevailing industrial development in the energy sector is quite similar to trade in other types of energy resources.
23. See U. N. CONFERENCE ON TRADE AND DEVELOPMENT, TRADE AGREEMENTS, PETROLEUM AND ENERGY POLICIES, 14-15 (2000), available at http://www.unctad.org/ en/docs/itcdtsb9-en.pdf.
24. Id. at 15.
25. Id.
26. Id. at 15-20.
27. Algeria applied to the GATT on June 16, 1987. Iran applied to the WTO on July 19, 1996. Iraq applied to the WTO on September 30, 2004. Libya applied to the WTO on June 10, 2004. For the status of countries that are in the WTO accession negotiation, please visit the "accession" section of the official WTO website, http://www.wto.org/english/thewto-e/acc-e/acc-e.htm (last visited Aug. 25, 2009).
28. See World Trade Organization, Energy Services: Background Note by the Secretariat, ¶ 3 (1998) [hereinafter WTO Secretariat].
29. Id.
30. Id.
31. For oil-exporting countries, high consumption taxes and excise taxes imposed on cars and other petrochemical products can seriously affect the benefits of exports. U. N. CONFERENCE ON TRADE AND DEVELOPMENT, supra note 18, at 27 & n. 27.
32. See Pascal Laffont, An Energy Charter Protocol on Transit, 2003 INT'L ENERGY L. & TAX'N REV. 239, 240.
33. Walde & Gunst, supra note 17, at 211-12.
34. Stephen J. Powell & John D. McInerney, International Energy Trade and the Unfair Trade Laws, 11 U. PA. J. INT'L BUS. L. 339, Part 1.1. (1989).
35. U. N. CONFERENCE ON TRADE AND DEVELOPMENT, supra note 18, at 15-20.
36. For a more detailed discussion on whether dual pricing measures are consistent with the definition of "subsidy" under the Agreement on Subsidy and Countervailing Measures, whether importing countries can impose countervailing duties, and the future development of dual pricing policies, please
37. see U. N. CONFERENCE ON TRADE AND DEVELOPMENT, supra note 18, at 29-35.
38. U. N. CONFERENCE ON TRADE AND DEVELOPMENT, supra note 18, at 36.
39. William C. Smith, Save Domestic Oil, Inc.'s Crude Oil Market Dumping Petition: Domestic and International Political Considerations, 8 TULSA J. COMP. & INT'L L. 147, 147 (2000).
40. For detailed discussion and analysis concerning this dispute
41. see id.
42. See World Trade Organization, http://www.wto.org/english/docs-e/legal-e/ 19-adp-01-e.htm (last visited Jan. 22, 2010).
43. Jacqueline Lang Weaver, The Traditional Petroleum-based Economy: An "Eventful" Future, 36 CUMB. L. REV. 505, 544 (2005-06).
44. Id. at 544-545.
45. Negotiation on export monopoly was included in Article 31.1 of the Havana Charter, but later disappeared when the Soviet Union decided to withdraw from the International Trade Organization. Michael Rom, Export Controls in GATT, 18 J. WORLD TRADE LAW 125, 136 (1984).
46. For the legal status and operation of various types of export cartels in the United States, Germany, European Union and Japan, and how they interact with trade and competition policies, see generally Ulrich Immenga, Export Cartels and Voluntary Export Restraints Between Trade and Competition Policy, 4 PAC. RIM L. & POL'Y J. 93 (1995).
47. See Desta et al., supra note 4, at 541-43 (analyzing these two legal disputes).
48. Visit the World Trade Organization's website, http://www.wto.org/english/ tratop-e/comp-e/comp-e.htm., for an introduction to the work regarding trade and competition policy of the WTO.
49. See Article 2.1, 2.2 & Annex (Illustrative List) of the TRIMs Agreement. A brief introduction to the TRIMs Agreement is available at World Trade Organization, http://www.wto.org/english/tratop-e/invest-e/invest-info-e. htm.
50. See, e.g., Philip Pierros, Exploring Certain Trade-Related Aspects of Energy Under GATT/WTO: Demarcation Questions Regarding Electricity, 5 INT'L TRADE LAW & REGULATION 26 (1999).
51. WTO Secretariat, supra note 23, ¶ 9.
52. Id. ¶ 10.
53. Simonetta Zarrilli & Irene Musselli, Oil and Gas Services: Market Liberalization and the Ongoing GATS Negotiations, 8 J. INT'L ECONOMIC L. 551, 559 (2005). Note the various proposals by WTO Members concerning the classification of energy sectors.
54. Id. at 559-61.
55. Id. at 564.
56. For specific commitments in the energy sector made by WTO Members under the Uruguay Round
57. see WTO Secretariat, supra note 23, ¶¶ 72-76, Table 9-11.
58. Id. ¶ 37;
59. Zarrilli & Musselli, supra note 45, at 578-79.
60. WTO Secretariat, supra note 23, 69.
61. Id. ¶ 70;
62. Zarrilli & Musselli, supra note 45, at 575-77.
63. Zarrilli & Musselli, supra note 45, at 567-72.
64. Frieder Roessler, GATT and Access to Supplies, 9 J. WORLD TRADE LAW 25, 31 (1975).
65. Id. at 28.
66. Id.
67. General Agreement on Tariffs and Trade 1994 art., XXVIII bis:1, Apr. 15, 1994, 1867 U. N. T. S. 187, 33 I. L. M. 1153 (1994) [hereinafter GATT 1994].
68. JOHN H. JACKSON, WORLD TRADE AND THE LAW OF GATT 499, n. 12. (1969);
69. Mrrsuo MATSUSHITA ET AL., THE WORLD TRADE ORGANIZATION 220 (2003).
70. Roessler, supra note 52, at 34;
71. Rom, supra note 38, at 128.
72. GATT 1994, supra note 55, art. II:1 (a).
73. Roessler, supra note 52, at 35;
74. Rom, supra note 38, at 128.
75. Rom, supra note 37, at 128 & nn. 2-3.
76. Roessler, supra note 52, at 35-36.
77. GATT 1994, supra note 55, art. II:1 (b).
78. Id. art. II:1 (a).
79. However, such a Member bears the burden of proof in demonstrating that treatment received as a result of higher export tariffs is less favorable than those listed under the Schedule of Concession. This will depend on how such a negotiated export tariff is prescribed under the Schedule of Concession.
80. WTO Appellate Body Report, Argentina-Measures Affecting Imports of Footwear, Textile, Apparel and Other Items, ¶ 47, WT/DS56/AB/R (Mar. 27, 1998).
81. WTO Report of the Panel, European Communities-Customs Classification of Frozen Boneless Chicken Cuts, ¶¶ 7.63-7.65, WT/DS269/R (May 30, 2005).
82. Roessler, supra note 52, at 37.
83. See id. at 37-39.
84. There are some instances where countries currently applying for accession to the WTO are being requested to "bind" export duties at zero. U. N. CONFERENCE ON TRADE AND DEVELOPMENT, supra note 18, at 3.
85. Roessler, supra note 52, at 30-33.
86. See generally WTO Analytical Index, Guide to WTO Law and Practice, http://www.wto.org/english/res-e/booksp-e/analytic-index-e/analytic-index-e.htm (last visited May 8, 2008).
87. WTO Report of the Panel, Argentina-Measures Affecting the Export of Bovine Hides and the Import of Finished Leather, WT/DS155/R (Dec. 19, 2000).
88. Id. ¶¶ 11.15-11.21.
89. Id. ¶¶ 11.22-11.35.
90. Id. ¶¶ 11.36-11.43.
91. Id. ¶¶ 11.44-11.54.
92. Id. ¶ 11.55.
93. For example, the Panel referred to the GATT Panel Report, Japan-Trade in Semiconductors and the Appellate Body Report, European Communities-Regime for the Importation, Sale and Distribution of Banana when it concluded that Article XI extends to restrictions of a de facto nature. It also referred to the Panel Reports, Japan-Taxes on Alcoholic Beverages II and Japan-Measures Affecting Consumer Photographic Film and Paper when it stated that action taken by private party might be regarded as governmental measures should there be sufficient governmental involvement.
94. Id. ¶¶ 11.17-11.21 and accompanying footnotes.
95. WTO Report of the Panel, European Communities-Programme of Minimum Import Prices, Licences, and Surety Deposits for Certain Processed Fruits and Vegetables, L/4687 BISD 25S/68 (Oct. 18, 1978).
96. Id. ¶¶ 3.1, 3.2.
97. Id. ¶¶ 3.6, 3.16, 3.22, 3.34, 3.29-3.32
98. Id. ¶¶ 4.9-4.14.
99. WTO Report of the Panel, Japan-Trade in Semi-Conductors, L/6309 BISD 35S/116 (May 4, 1988).
100. Id. ¶¶ 49-55.
101. Id. ¶¶ 50, 54.
102. Id. ¶ 105.
103. Id. ¶ 106.
104. Id. ¶¶ 113-17.
105. Id. ¶¶ 109-17.
106. Desta et al., supra note 5, at 534.
107. Stephen A. Broome, Conflicting Obligations for Oil Exporting Nations?: Satisfying Membership Requirements of Both OPEC and the WTO, 38 GEO. WASH. INT'L L. REV. 409, 416 (2006).
108. Id. at 416-17.
109. Id. at 417.
110. Id. at 416-17.
111. Id. at 418.
112. Id.
113. Id. at 418-19.
114. See the previous discussion on Japan-Trade in Semi-Conductors, supra note 83, ¶ 113-17.
115. Broome, supra note 91, at 418-19.
116. However, countries adopting such a production quota might rely on general exceptions contained in the GATT to justify such measures. See the following discussion.
117. GATT 1994, supra note 55, art. XIII:5.
118. Article XI:2 (c) states, "The provisions of paragraph 1 of this Article shall not extend to the following:... (c) Import restrictions on any agricultural or fisheries product, imported in any form, necessary to the enforcement of governmental measures which operate." GATT 1994, supra note 55, art. XI:2 (c).
119. Rom, supra note 38, at 131-32.
120. GATT 1994, supra note 55, arts. XI, XIII.
121. WTO Report of the Panel, Canada-Measures Affecting Exports of Unprocessed Herring and Salmon, L/6268-35S/98 (Mar. 22, 1988).
122. Id. ¶ 3.17
123. Id. ¶¶ 3.16-3.18, 3.22.
124. Id. ¶ 4.2.
125. Id.
126. WTO Report of the Panel, Canada-Measures Affecting Exports of Unprocessed Herring and Salmon, ¶ 4.3, L/6268-35S/98 (Mar. 22, 1988).
127. Id.
128. Id.
129. Id. ¶ 4.3.
130. MATSUSHITA ET AL., supra note 56, at 218.
131. Article XII:1 states: "Notwithstanding the provisions of paragraph 1 of Article XI, any contracting party, in order to safeguard its external financial position and its balance of payments, may restrict the quantity or value of merchandise permitted to be imported, subject to the provisions of the following paragraphs of this Article." GATT 1994, supra note 55, art. XII:1 (emphasis added). Article XVIII:B:9 states: "In order to safeguard its external financial position and to ensure a level of reserves adequate for the implementation of its programme of economic development, a contracting party coming within the scope of paragraph 4 (a) of this Article may, subject to the provisions of paragraphs 10 to 12, control the general level of its imports by restricting the quantity or value of merchandise permitted to be imported."
132. GATT 1994, supra note 55, art. XVIII:B:9 (emphasis added).
133. WTO, Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994, ¶ 2, available at http://www.wto.org/ english/docs-e/legal-e/09-bops-e.htm.
134. Rom, supra note 38, at 131.
135. See GATT 1994, supra note 55, arts. XIV: 1-2.
136. Rom, supra note 38, 132.
137. GATT 1994, supra note 55, art. XIV: 4 (emphasis added).
138. See WTO Report of the Panel, Canada-Measures Affecting Exports of Unprocessed Herring and Salmon, L/6268-35S/98 (Mar. 22, 1988). The interpretations of the terms "relating to" and "in conjunction with" in Article XX (g) in this GATT dispute are widely referred to in future cases concerning the application of Article XX (g).
139. Article XX (g) permits exception measures which are "relating to the conservation of exhaustible natural resources if such measures are made effective in conjunction with restrictions on domestic production or consumption. "
140. GATT 1994, supra note 55, art. XX (g).
141. Id. ¶ 4.6.
142. WTO Report of the Appellate Body, United States-Import Prohibition of Certain Shrimp and Shrimp Products, ¶ 136, WT/DS58/AB/R (Oct. 12, 1998).
143. Desta et al., supra note 4, at 536.
144. Broome, supra note 91, at 427.
145. Id.
146. Desta et al., supra note 4, at 537.
147. Id.
148. WTO Report of the Panel, EEC-Import Regime for Bananas, ¶ 166, DS38/R (Feb. 11, 1994).
149. Id.
150. Id.
151. GATT 1994, Article XI:2 (a) states that, "Export prohibitions or restrictions temporarily applied to prevent or relieve critical shortages of foodstuffs or other products essential to the exporting contracting party, " but Article XX (j) does not limit its application to "export"
152. only. GATT 1994, supra note 55, art. XI:2 (a) (emphasis added).
153. GATT 1994, Article XX (j) states that: "[E]ssential to the acquisition or distribution of products in general or local short supply; Provided that any such measures shall be consistent with the principle that all contracting parties are entitled to an equitable share of the international supply of such products, and that any such measures, which are inconsistent with the other provisions of the Agreement shall be discontinued as soon as the conditions giving rise to them have ceased to exist. The CONTRACTING PARTIES shall review the need for this sub-paragraph not later than 30 June 1960."
154. GATT 1994, supra note 55, art. XX (j). Article XI:2 (a) does not contain such conditions.
155. Id. art. XI: 2 (a).
156. Sanford Gaines, The WTO's Reading of the GATT Article XX Chapeau: A Disguised Restriction on Environmental Measures, 22 U. PA. J. INT'L ECON. L. 739, 739 (2001).
157. Roessler, supra note 52, at 29-30.
158. Donald N. Zillman, Energy Trade and the National Security Exception to the GATT, 12 J. ENERGY, NAT. RESOURCES & ENVTL. L. 117, 117 (1994).
159. For a detailed analysis of the GATT 1994 Article XXI and its relevant disputes, see Catherine Li, International Trade and National Security-An Analysis of Article XXI of GATT on Security Exception, 34 NAT'L TAIWAN U. L. J. 229 (2005) (this article is written in Chinese).
160. Zillman, supra note 137, at 118.
161. Broome, supra note 91, at 429-31.
162. Zillman, supra note 137, at 124.
163. Id. at 124-25.
164. Id. at 126.
165. Id.
166. Such an argument was put forward by the United States in the 1949 United States vs. Czechoslovakia dispute and by Ghana in the 1961 Ghana vs. Portugal dispute in the GATT era.
167. See Zillman, supra note 137, at 119.
168. Li, supra note 138, at 246-47.
169. Id. at 251, 266.
170. See WTO, Understanding on Rules and Procedures Governing the Settlement of Disputes, art. 22, available at http://www.wto.org/english/tratop-e/dispu-e/ dsu-e.htm.
171. U. S. DEP'T OF ENERGY, CRUDE OIL AND TOTAL PETROLEUM IMPORTS TOP 15 COUNTRIES, available at http://www.eia.doe.gov/pub/oil-gas/petrolenm/data- publications/company-level-imports/current/import.html.
172. U. S. DEP'T OF ENERGY, U. S. NATURAL GAS IMPORT BY COUNTRY, available at http://tonto.eia.doe.gov/dnav/ng/ng-move-impc-s1-m.htm.
173. NORTH AMERICAN FREE TRADE AGREEMENT, 32 I. L. M. 289 (pts. 1-3);
174. I. L. M. 605 (pts. 4-8) (entered into force Jan. 1, 1994) [hereinafter NAFTA]. For chronologies of the Canada-U. S. FTA and the NAFTA
175. see http://www.intemational.gc.ca/trade-agreements-accords-commerciaux/ agr-acc/fast-facts-US.aspx?lang=EN.
176. Ernest E. Smith & David P. Cluchey, GATT, NAFTA and the Trade in Energy: A U. S. Perspective, 12 J. ENERGY & NAT. RESOURCES L. 27, 33 (1994).
177. Richard D. English, Energy in the NAFTA: Free Trade Confronts Mexico's Constitution, 1 TULSA J. COMP. & INT'L L. 1, 2-3 (1993).
178. Middleton, supra note 10, at 201.
179. Middleton, supra note 10, at 180-84.
180. John Fohr, How NAFTA Increases Global Energy Security, 22 WIS. INT'L L. J. 741, 758 (2004).
181. Id. at 758-59.
182. Middleton, supra note 10, at 192-93.
183. English, supra note 153, at 2. For a detailed discussion on Mexico's history of oil from the colonial period to the 1990s
184. see id. at 2-7.
185. Id. at 7.
186. Id. at 9-12.
187. Id.
188. Id. at 13
189. (citing Protocol of Accession of Mexico to the General Agreement on Tariffs and Trade, GATT Doc. L/6010; WTO, BASIC INSTRUMENTS AND SELECTED DOCUMENTS, 33rd Supp. 27, 1987).
190. English, supra note 153, at 6-7.
191. NAFTA, supra note 151, art. 601.1
192. NAFTA Article 603.1 states: 'Subject to the further rights and obligations of this Agreement, the Parties incorporate the provisions of the General Agreement on Tariffs and Trade (GATT), with respect to prohibitions or restrictions on trade in energy and basic petrochemical goods."
193. Id. art. 603.1.
194. GATT 1994, article XI:1 only states: No prohibitions or restrictions other than duties, taxes or other charges, whether made effective through quotas, import or export licenses or other measures, shall be instituted or maintained by any contracting party on the importation of any product of the territory of any other contracting party or on the exportation or sale for export of any product destined for the territory of any other contracting party.
195. GATT 1994, supra note 55, art. XI:1.
196. NAFTA, supra note 151, art. 604.
197. Id. art. 605 (a) (emphasis added).
198. Id. art. 605 (b) (emphasis added).
199. Id. art. 605 (c) (emphasis added).
200. NAFTA Article 607 states: 'Subject to Annex 607, no Party may adopt or maintain a measure restricting imports of an energy or basic petrochemical good from, or exports of an energy or basic petrochemical good to, another Party under Article XXI of the GATT or under Article 2102 (National Security)...."
201. Id. art. 607 (emphasis added).
202. NAFTA Article 607 states: [E]xcept to the extent necessary to: a) supply a military establishment of a Party or enable fulfillment of a critical defence contract of a Party; b) respond to a situation of armed conflict involving the Party talcing the measures; c) implement national policies or international agreements relating to the non-proliferation of nuclear weapons or other nuclear explosive devices; or d) respond to direct threats of disruption in the supply of nuclear materials for defence purposes.
203. Id.
204. NAFTA, supra note 151, Annex 602.3, ¶1.
205. English, supra note 153, at 14.
206. Id. at 17-18.
207. Piebalgs Reviews Progress Towards European Energy Policy, E. U. FOCUS, 195, at 12 (2006).
208. Id. at 12;
209. see also Commission of the European Communities, Brussels, 10.1.2007; An Energy Policy for Europe, COM, 1 final (2007).
210. Chris Flynn, Russian Roulette: The ECT, Transit and Western European Energy Security, INT'L ENERGY L. & TAX'N REV. 12, 12 (2007).
211. Id.
212. Id. at 12.
213. Id.
214. THE ENERGY CHARTER TREATY, 34I. L. M. 360 (1995) [hereinafter ECT];
215. see also About the Charter, http://www.encharter.org/index.php?id=7 (Oast visited Aug. 25, 2009).
216. See the "Members & Observers" section in the "About the Charter" information contained at the official website of the Energy Charter Treaty, http://www.encharter.org/index.php?id=7 (last visited Aug. 25, 2009).
217. See ENERGY CHARTER SECRETARIAT, THE ENERGY CHARTER TREATY: A READER'S GUIDE, 14-15, available at http://www.encharter.org/fileadmin/user-upload/ document/ECT-Guide-ENG.pdf.
218. Andrei A. Konoplyanik, Russia-EU Summit: The Energy Charter Treaty and the Issue of Energy Transit, INT'L ENERGY L. & TAX'N REV. 30, 32 (2005);
219. see also Doran Doeh, Russia and the Energy Charter Treaty: Common Interests or Irreconcilable Differences, INT'L ENERGY L. & TAX'N REV. 189, 190 (2006).
220. Desta et al., supra note 4, at 539.
221. Id. at 539-40.
222. Id. at 540.
223. ECT, supra note 183, art. 1.
224. Note that references to the GATT are all being replaced by the WTO in the Trade Amendment.
225. ECT, supra note 183, art. 29.2 (a).
226. Id. art. 29.3 (a).
227. Id. art. 29.4 (a), (b).
228. Id. art. 29.6 (a), (b).
229. ECT Article 24.2 (b) (i) contains language similar to GATT 1994 Article XX (b): "necessary to protect human, animal or plant life or health." ECT Article 24.3 (a) (ii) also contains language similar to GATT 1994 Article XXI: (b) (iii): "taken in time of war... or other emergency in international relations."
230. ECT, supra note 183, art. 24.1.
231. Laffont, supra note 27, at 240.
232. ECT, supra note 183, art. 7.1.
233. ECT, supra note 183, arts. 7.2 (c) - (d).
234. ECT, supra note 183, art. 7.6 (emphasis added).
235. See Laffont, supra note 27, at 241-42;
236. see also Walde & Gunst, supra note 17, at 213.
237. Doeh, supra note 186, at 189.
238. Russia clearly stated that its biggest concern on the ECT is the Transit Protocol. See id. at 189-90.
239. ECT Article 45.2 (a) states: "Notwithstanding paragraph (1) any signatory may, when signing, deliver to the Depository a declaration that it is not able to accept provisional application. The obligation contained in paragraph (1) shall not apply to a signatory making such a declaration. Any such signatory may at any time withdraw that declaration by written notification to the Depository." ECT, supra note 183, art. 45.2 (a).
240. ECT Article 42.3 (a) states: "Any signatory may terminate its provisional application of this Treaty by written notification to the Depository of its intention not to become a Contracting Party to the Treaty." ECT, supra note 183, art. 42.3 (a).
241. U. N. CONFERENCE ON TRADE AND DEVELOPMENT, supra note 18, at 63 (2000).
242. Id.
243. Russia applied for accession to the WTO in June 1993. ECT began its negotiations in 1992 and opened for signature in 1994.
244. Laffont, supra note 27, at 240.
245. See the preamble to the WTO Agreement and the preamble to the GATT 1947.
246. For example, importing countries could offer market access to petrochemicals or other manufacturing products to exporting countries in exchange for exporting countries' commitment of a steady supply of energy resources.
247. Yulia Selivanova, The WTO and Energy: WTO Rules and Agreements of Relevance to the Energy Sector, ICTSD PROGRAMME ON TRADE AND ENVIRONMENT ISSUE PAPER NO. 1, 10 (2007), available at http://ictsd.net/downloads/2008/05/ the20wto20and20energy.pdf.
248. Indeed, as noted by Selivanova, "[f]ree trade agreements rarely contain provisions specific to the energy sector."
249. Id. at 9.
250. Id. at 13.