Energy Security, GATT/WTO and Regional Agreements

50 Pages Posted: 27 Jun 2008

See all articles by Wen-chen Shih

Wen-chen Shih

National Chengchi University (NCCU) - Department of International Trade

Date Written: June 25, 2008

Abstract

How to ensure steady supply of energy remains a priority for every nation's energy policy-making. Considering the fact that most countries import energy resources, trade in energy - in particular the export policies of major energy resources exporting countries - play a crucial role in energy security planning. Can the legal principles of non-discriminatory and prohibition on quantitative restrictions under the World Trade Organisation (WTO) assist WTO Members to achieve the policy objective of energy security? If so, why did some WTO Members negotiate regional agreements with very strong energy connection, such as the North American Free Trade Agreement (NAFTA) and the Energy Charter Treaty (ECT)? Does this imply that the role of the WTO will be increasingly diminished and replaced by regional agreements in the context of energy security? This article will conduct a preliminary research on this question. A definition of energy security, along with different dimensions of energy trade and how GATT/WTO rules are relevant to these dimensions will be analysed first. After identifying export control provisions as the most relevant regulations with respect to energy security, this article proceeds to conduct a detail examination on export duties, export prohibition or restrictions, and exceptions to export control under the GATT/WTO to identify whether these offer adequate protection for energy resources importing WTO Members in the context of energy security. Two regional agreements, NAFTA and ECT, and their export control regulations will then be analysed and comparison will be made between these regulations and those under the GATT/WTO. The article finds that export controls under these regional agreements are more attuned to cater the energy security need of countries relying on energy import. However, considering the fact that not every WTO Member has the power to negotiate such an agreement with its major energy resources exporting partner, and that the objective of trade liberalisation embodied under the WTO also plays a crucial role to energy trade and energy security, this article concludes that GATT/WTO will not, and cannot be substituted by regional agreement in the context of energy security.

Keywords: energy security, energy trade, export control under the GATT/WTO, NAFTA, Energy Charter Treaty

JEL Classification: F02, F10, F13, F14, F15

Suggested Citation

Shih, Wen-chen, Energy Security, GATT/WTO and Regional Agreements (June 25, 2008). Society of International Economic Law (SIEL) Inaugural Conference 2008 Paper, Available at SSRN: https://ssrn.com/abstract=1151352 or http://dx.doi.org/10.2139/ssrn.1151352

Wen-chen Shih (Contact Author)

National Chengchi University (NCCU) - Department of International Trade ( email )

Taiwan

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