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10 Energy Transit in the Tangled Web of rtas: The Relationship between gatt Articles V and XXIV in the Context of Energy Goods

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Chapter Summary

At the close of the Uruguay Round of negotiations, the World Trade Organization was comprised of 123 Members, with only a handful among them representing States vital to the global supply of energy resources. Article V of the GATT obliges WTO Members to extend the objective right of freedom of transit to all goods from other Members, regardless of the origin or final destination of the goods. This chapter provides the most important provisions of GATT Article V, with specific focus on areas of importance for the transit of energy goods over fixed infrastructure and offers a detailed analysis of key elements of the GATT Article XXIV exception, with emphasis on the 'internal trade requirement' of the Article XXIV. It sets out a proposed analytical framework to address the relationship between WTO rules on transit and regional integration and applies this framework to two likely two energy transit scenarios.

Keywords: Article V; Article XXIV; energy transit; GATT; World Trade Organization



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