60 years ago, when the rules of the GATT were negotiated, world energy demand was a fraction of what it is today and so were energy prices. While energy has always been a crucial factor in geopolitics, at that time liberalizing trade in energy was not a political priority. The industry was largely dominated by state run monopolies and thus governed by strict territorial allocation. International trade in energy resources and products was heavily concentrated, cartelized and controlled by a few multinational companies. This explains why the rules of the General Agreement on Tariffs and Trade (GATT), and now the World Trade Organization (WTO), do not deal with energy as a distinct sector. One possible reason is that most of energy abundant nations
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As this was the main reason for the two world wars, several Oil producing countries did not accede to the WTO. In the early years of GATT the pricing issues were not addressed as a result of which there were tensions prevailing in the market which eventually led to a shock in 1970 which affected several Oil importing nations to a very large extent. Several Oil importing countries including the United States to include the subject of Export restrictions in the Tokyo round of the Multilateral Trade Negotiations (1973-79). Several attempts were made during the Uruguay round to tighten the export policy matters on Oil and petroleum products. The issue on the table was “Dual Pricing” practices adopted by the Oil exporting nations. It was of the opinion that the Dual pricing distorted trade related activities, as it was increasingly becoming tough for the countries to maintain the prices in the domestic markets. There were fears about the rise in prices of petroleum products, which could lead to a situation like the one happened in …show more content…
The main goal of OPEC is the coordination and unification of the petroleum policies of its Member Countries, working out ways and means of ensuring the stabilization of prices in international oil markets with due regard being given to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the petroleum industry. When OPEC was founded on 14 September 1960, none of its five founding members was a contracting party to the GATT. This picture has been changing
As this was the main reason for the two world wars, several Oil producing countries did not accede to the WTO. In the early years of GATT the pricing issues were not addressed as a result of which there were tensions prevailing in the market which eventually led to a shock in 1970 which affected several Oil importing nations to a very large extent. Several Oil importing countries including the United States to include the subject of Export restrictions in the Tokyo round of the Multilateral Trade Negotiations (1973-79). Several attempts were made during the Uruguay round to tighten the export policy matters on Oil and petroleum products. The issue on the table was “Dual Pricing” practices adopted by the Oil exporting nations. It was of the opinion that the Dual pricing distorted trade related activities, as it was increasingly becoming tough for the countries to maintain the prices in the domestic markets. There were fears about the rise in prices of petroleum products, which could lead to a situation like the one happened in …show more content…
The main goal of OPEC is the coordination and unification of the petroleum policies of its Member Countries, working out ways and means of ensuring the stabilization of prices in international oil markets with due regard being given to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the petroleum industry. When OPEC was founded on 14 September 1960, none of its five founding members was a contracting party to the GATT. This picture has been changing