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GATT/WTO Accessions and Energy Security

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Abstract

With the recent WTO entry of a number of energy majors and transit economies, energy issues are increasingly being discussed and negotiated in WTO membership packages. The accession negotiations are therefore proving to be an interesting testing ground for rule making on the energy sector from different and often competing perspectives. This chapter examines the GATT/WTO membership packages and protocol commitments of the Russian Federation, Saudi Arabia, Mexico, Oman, Venezuela, and Ukraine, and delves on the extent to which the commitments of recently acceded members can serve as a precedent and a basis to guide future discussions on energy security at the WTO.

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Notes

  1. 1.

    Yemen’s membership package was adopted at the WTO Bali Ministerial Conference in December 2013. Pending domestic ratification, Yemen is set to become the 160th WTO Member.

  2. 2.

    For example, see GATT accession of Mexico (paragraphs 73 and 80 of L/6010 and paragraph 5 of L/6036) and WTO accession of the Russian Federation (paragraph 123 of WT/ACC/RUS/70 & WT/MIN (11)/2).

  3. 3.

    However, not all tariff lines have been bound by all members. The US, for example, has not bound two lines pertaining to crude petroleum HS 27090010 and 27090020 (US TPR 2012 WT/TPR/S/275 page 41, Footnote 49). India too has unbound rates (see Chap.4 ).

  4. 4.

    GATS Article 1.3(b) and (c).

  5. 5.

    GATT 1994 Article III:9.

  6. 6.

    For variants of this standard protocol commitment, see Oman (paragraph 25 of WT/ACC/OMN/26), Saudi Arabia (paragraph 35 of WT/ACC/SAU/61) or Russian Federation (paragraph 133 of WT/ACC/RUS/70).

  7. 7.

    See paragraphs 26–33 of the Report of the Working Party on the Accession of Saudi Arabia (WT/ACC/SAU/61).

  8. 8.

    See paragraphs 101–133 of the Report of the Working Party on the Accession of Russian Federation (WT/ACC/RUS/70 & WT/MIN(11)/2).

  9. 9.

    See paragraphs 22–23 of the Report of the Working Party on the Accession of Oman (WT/ACC/OMN/26).

  10. 10.

    Paragraph 54 of the Report of the Working Party on the Accession of Mexico (L/6010).

  11. 11.

    See Saudi Arabia (paragraph 52 of WT/ACC/SAU/61). For variants of this standard protocol commitment, see Oman (paragraph 114 of WT/ACC/OMN/26), Russian Federation (paragraph 99 of WT/ACC/RUS/70) and Ukraine (paragraph 53 of WT/ACC/UKR/152).

  12. 12.

    See paragraphs 44 and 52 of Report of the Working Party on the Accession of Saudi Arabia (WT/ACC/SAU/61).

  13. 13.

    See paragraphs 76, 85, 88, 90 and 99 of Report of the Working Party on the Accession of the Russian Federation (WT/ACC/RUS/70).

  14. 14.

    See paragraphs 43 and 44 of the Report of the Working Party on the Accession of Ukraine (WT/ACC/UKR/152).

  15. 15.

    See paragraph 68 of the Report of the Working Party on the Accession of Venezuela, GATT (L/6696).

  16. 16.

    See WTO Notification pursuant to Article XVII:4(a) of GATT 1994 and Paragraph 1 of the Understanding on the Interpretation of Article XVII-Venezuela, G/STR/N/7/VEN (2001).

  17. 17.

    See Notification pursuant to Article XVII:4(a) of the GATT 1994 and paragraph 1 of the Interpretation of Article XVII—Saudi Arabia, G/STR/N/12/SAU (2009).

  18. 18.

    See paragraphs 57 and 64 of Report of the Working Party on the Accession of Saudi Arabia (WT/ACC/SAU/61).

  19. 19.

    See paragraphs 1064–1070 of Report of the Working Party on the Accession of the Russian Federation (WT/ACC/RUS/70). In Russia, a production sharing agreement was “an agreement in which the investor, in consideration for value received and for a limited term, was granted exclusive rights to perform search, exploration, and mining of minerals”.

  20. 20.

    See paragraphs 76 and 77 of Report of the Working Party on the Accession of Ukraine (WT/ACC/UKR/152).

  21. 21.

    Relevant provisions in the context of quantitative restrictions are: GATT 1994 Basic prohibition: Article XI.I; Exceptions: Articles XII, XVIII, XIX, XX, XXI; Administration of Restrictions: Articles VII, X, XIII, XIV, XV. WTO Multilateral Agreements on Agriculture, Safeguards, SPS, TBT and the Agreement on Import Licensing Procedures.

  22. 22.

    See Mexico (paragraphs 73, 80 of L/6010 and paragraph 5 of L/6036) and the Russian Federation (paragraph 123 of WT/ACC/RUS/70).

  23. 23.

    For variants of this standard protocol commitment, see Oman (paragraph 57 of WT/ACC/OMN/26) and Russian Federation (paragraph 275 of WT/ACC/RUS/70).

  24. 24.

    See paragraphs 270–272 and 275 of Report of the Working Party on the Accession of The Russian Federation (WT/ACC/RUS/70).

  25. 25.

    See paragraphs 52 and 57 of Report of the Working Party on the Accession of Oman (WT/ACC/OMN/26).

  26. 26.

    GATT 1994 Articles XI:2(a), XX and XXI are of particular relevance in the context of the energy sector.

  27. 27.

    See paragraph 5 of the Protocol of Accession of Mexico (L/6036).

  28. 28.

    For variants of the standard protocol commitment on export restrictions and the emphasis on transparency, see Saudi Arabia (paragraphs 179, 182–183 of WT/ACC/SAU/61).

  29. 29.

    See paragraph 668 of Report of the Working Party on the Accession of The Russian Federation (WT/ACC/RUS/70).

  30. 30.

    GATT 1994 Articles I.1, X:1, XXVIII bis.

  31. 31.

    See also negotiating proposal submitted by the EU to the Negotiating Group on Market Access (TN/MA/W/1).

  32. 32.

    For a variant of this standard protocol commitment, see Russian Federation (paragraph 638 of WT/ACC/RUS/70).

  33. 33.

    See paragraphs 623–638 of the Report of the Working Party on the Accession of The Russian Federation (WT/ACC/RUS/70).

  34. 34.

    Accession of the Russian Federation: Schedule of Concessions and Commitments on Goods (WT/ACC/RUS/70/Add. 1).

  35. 35.

    As per the formula, the export duty levied by Russia for crude oil is directly proportional to the world price. No export duty would be levied if the world prices of crude oil are less than or equal to US$ 109.5/t. The highest rate of duty would apply if the world price is greater than US$182.5/t and the duty would amount to US$29.2/t + 0.65 (World Price—US$182.5)/t.

  36. 36.

    SCM Agreement Article 1.1 and 2.

  37. 37.

    For variants of these standard protocol commitments, see Oman (paragraph 88 of WT/ACC/OMN/26); Russian Federation (paragraph 698 of WT/ACC/RUS/70); and Ukraine (paragraphs 275–276 of WT/ACC/UKR/152).

  38. 38.

    See paragraph 54 of the Report of the Working Party on the Accession of Mexico (L/6010).

  39. 39.

    See paragraph 64 of the Report of the Working Party on the Accession of Venezuela (L/6696).

  40. 40.

    See paragraph 679 of the Report of the Working Party on the Accession of Russian Federation (WT/ACC/RUS/70).

  41. 41.

    See paragraphs 120–124 of the Report of the Working Party on the Accession of the Russian Federation (WT/ACC/RUS/70).

  42. 42.

    See also Sect. 2.2.6.2 and Yanovich (2011) for a discussion on GATT Article V provisions and the WTO jurisprudence in this area with the Colombia—Ports of Entry ruling.

  43. 43.

    See Ukraine (paragraph 367 of WT/ACC/UKR/152).

  44. 44.

    See Russian Federation (paragraph 1161 of WT/ACC/RUS/70).

  45. 45.

    The CPC defines this sub-sector as: “services rendered on a fee or contract basis at oil and gas fields, e.g. drilling services, derrick building, repair and dismantling services, oil and gas well casings cementing services”(CPC 883), and “site preparation work for mining” (CPC 5115).

  46. 46.

    The CPC defines this sub-sector as “transmission and distribution services on a fee or contract basis of electricity, gaseous fuels and steam and hot water to household, industrial, commercial and other users” (CPC 887).

  47. 47.

    This sub-sector is defined as “transportation via pipeline of crude or refined petroleum products and of natural gas” (CPC 7131).

  48. 48.

    Accession of Ukraine: Schedule of Specific Commitments on Services—Additional Commitment on “XI. Transport services: 7. Pipeline Transport” (WT/ACC/UKR/152/Add. 2).

  49. 49.

    Article XII.1 of the Marrakesh Agreement Establishing the WTO.

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  1. Centre for WTO Studies, Indian Institute of Foreign Trade, New Delhi, India

    Sajal Mathur & Preeti Mann

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  1. Sajal Mathur
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  1. Centre for WTO Studies, Indian Institute of Foreign Trade, New Delhi, Delhi, India

    Sajal Mathur

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Mathur, S., Mann, P. (2014). GATT/WTO Accessions and Energy Security. In: Mathur, S. (eds) Trade, the WTO and Energy Security. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1955-2_3

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