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COMMENTARY ON THE ENERGY CHARTER TREATY

RAFAEL LEAL-ARCAS

The Commentary on the Energy Charter Treaty (ECT) provides a unique, article-by-article, textual analysis of this important international agreement. The ECT outlines a multilateral framework for cross-border cooperation in the energy sector based on the principles of open competitive markets and sustainable development.
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ARTICLE 20: TRANSPARENCY

Gloria Alvarez

Extract

The inclusion of the notion of transparency in different forms of international investment agreements aims to promote the inclusion of transparent practices at the host-state national level. The Energy Charter Treaty refers to the notion of transparency only in the context of specific national measures. These measures are legislative, judicial and administrative decisions made by a Contracting Party which could affect foreign trade and investments in the energy sector, and which are protected under the ECT. The ECT Secretariat has further explained and clarified the notion of transparency in the context of the scope of ECT Article 20, where transparency is a vehicle to remove barriers to energy investments and therefore promote a more predictable and stable energy sector at a national level. The objective of this provision is to use transparency as a vehicle to addressed national concealed protectionism and inefficiencies.

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