The Energy Charter Treaty as a means of developing national industry and commerce in the exploitation of petroleum resources: An analysis of the application of Articles 5, 10 and 22 of the Energy Charter Treaty
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The exploitation of petroleum resources has the capacity to enhance a nation's economy and promote national industry. This study examines how a state can utilise the Energy Charter Treaty (ECT) to develop national industries and commerce in the exploitation of its petroleum resources. The development of petroleum resources of a state relies on investment in petroleum producing enterprises and the development of infrastructure, in order to produce petroleum. It also relies on the ability of a state to gain access to certain markets in order to sell the petroleum products.
The ECT was established to provide a legal framework that creates mutual trade benefits for all parties, to ensure access to energy products, and to secure investment to develop those energy products. This study focuses on two important pillars of the ECT: trade and investment. After a consideration of the history, scope and aims of the ECT, this study will examine how Article 5 of the ECT (Trade Related Investment Measures) can assist a state to develop its petroleum resources through the non-discriminatory access to trade under the GATT provisions in a transparent manner. It will then analyse how the Article 10 investment measures (Promotion, Protection and Treatment of Investments) assists in the development of commerce and industry.
In particular, it will focus on how these provisions provide fair and equitable treatment of investors in both the pre-investment and post investment phase. Finally, this study will provide a discussion on the application of the Article 22 measures for State and Privileged Enterprises in energy trade and energy investment.
This document has been peer reviewed.