Energy Dual pricing in the procedure of WTO

Document Type : Research Paper

Authors

Abstract

 
Since the formation of the World Trade Organization (WTO), energy and related issues have always been debated. This subjects become more significant when the major energy producing countries demand for accession to WTO. For this reason, most of energy producing and exporting countries were forced to modify and change their rules. One of the controversial issues in this regard is the adoption of dual pricing policy from applicant countries. Energy-holding countries put their domestic manufacturers in a position of superiority to their international rivals by setting lower energy prices for them. This policy has caused some disagreements between energy-exporting and -importing countries. From the perspective of  energy importing countries, such as EU members, these behaviors are considered as granting subsidy which is in contrast to the basic non-discrimination principles of GATT; most favored nation and the national behavior. Hence, confrontation of WTO here is of great importance. It is very difficult to assess the violation of WTO rules by dual pricing due to its complexity. Despite the same effect of determination of double price with subsidy, states use different excuses for doing so. Therefore, a review of WTO members is in order.

Keywords


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