ANNOUNCEMENTS
Energy trade is one of the most critical trade sectors within the WTO, since it constitutes, in terms of volume and value, the largest primary commodity in global trade.1 The energy trading market has been regarded as a special case for decades because of the peculiar characteristics of the energy sector in general and of energy exchange in particular. The factor which lead to special focus on energy sector are: first, the uniqueness relating to the special character and usage along with the value of oil; second, the unparalleled difficulties and challenges facing the global energy sector in general and energy trade in particular; and third, certain legal debates and outstanding issues arising from the intersection between WTO law and energy trade.
The GATT/WTO lays down laws banning unjustifiable discrimination relating to the trade of energy amongst different nations in past, current and future trade in all goods, as well as import and export prohibitions. To the degree that an energy source (for example, oil, natural gas or coal) is in the form of a commodity, ―all provisions‖ of the WTO containing disciplines relating to trade in products shall apply. The WTO also has rules on ―trade in services contained in the GATS‖: each GATS rules are technically applicable to the application of services related to oil.
The World Energy Council is pleased to have an opportunity to address the relationship between international trade and natural resources. Our focus here is on trade in energy goods and services.‖2―We will leave aside the precise definition‖ of ―energy‖, ―but in what follows, we assume that it covers not only traditional forms of energy, such as hydrocarbons, but also renewable energy forms, such as biofuels, wind, solar, but importantly on the range of products and services which are themselves traded and/or which are otherwise involved in transborder movement.
The WTO Agreement‖ has a very wide reach and coverage of a range of ―energy-related commercial activities. Most people believe that WTO laws usually apply to trade in natural resources‖. ―In sum, whether WTO Members should develop — in the WTO or outside the WTO — a new dedicated framework for dealing with energy-related trade issues is an open question. ―But what seems clear is that, since there are already several WTO disciplines that are applicable to trade in energy‖, ―if States negotiate rules on trade in energy outside the WTO, they will necessarily have to reflect on how to bridge the existing WTO energy-relevant provisions with other non-WTO energy related provisions.
