Commentary on the Energy Charter Treaty
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Commentary on the Energy Charter Treaty

Edited by 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 24: EXCEPTIONS

Costantino Grasso and Gloria Alvarez

Abstract

This chapter illustrates a series of exceptions provided by Article 24 of the Energy Charter Treaty, which have been inspired by the exceptions from trade rules that are contained in the General Agreement on Tariffs and Trade framework (GATT) of 1994. Such exceptions give the Contracting Parties the possibility of derogating from treaty rules for various reasons. The chapter offers a critical analysis of such exceptions focusing on issues like the acquisition or distribution of energy materials and products in conditions of short supply arising from exceptional causes; the possibility of establishing privileges for investors who are aboriginal people or socially or economically disadvantaged individuals; the possibility of establishing or joining free-trade areas or customs unions, the protection of essential security interests; the implementation of national policies related to the non-proliferation of nuclear weapons; and the maintenance of domestic law and order.

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