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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 32: TRANSITIONAL ARRANGEMENTS

Silke Goldberg, Naomi Lisney and Anne Eckenroth

Extract

Article 32 of the Energy Charter Treaty ("ECT") entitled certain countries to temporarily suspend full compliance with specific ECT provisions through negotiated transitional arrangements. This chapter describes how the exceptions claimed were modest and often related to areas where a country required technical or financial assistance to reach compliance. The last transitional arrangements were phased out on 1 July 2001. Whilst full compliance means liability to ECT investor protections, it has been shown that these countries will not be held liable to investors for any changes to competition laws made in an effort to comply with the ECT, which were foreseeable at the time of investment.

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