Application Of GATT Transit Freedom Clause In Pipeline Natural Gas Transit

Energy cooperation has always been the top priority in the development of international economy and trade.The transit of natural gas pipelines involves a large number of countries,and the smooth implementation of the transit is directly linked to guaranteeing the freedom of transit of natural gas through pipelines Article 5 of the WTO General Agreement on Tariffs and Trade has the advantages and applicability to solve the problem of natural gas pipeline transit.Paragraph 2 of GATT establishes freedom of transit and establishes the principle of non-discrimination to guarantee its realization.However,in order to apply the transit freedom in GATT to the transit of pipeline natural gas,it is necessary to clarify the relevant content of transit freedom from paragraph 2.The article combs the history of the freedom of transit and its main sources of international law,and draws the conclusion that the article is applicable to the transit of natural gas through pipelines from the interpretation of the relevant terms of paragraph 2 of Article V of GATT However,the provisions themselves do not specify how the transit of piped natural gas is to be effected,and it is not clear whether the extension of paragraph 2 includes the right of third-party access and the construction of new pipelines,finally,a solution to the GATT Article v Dilemma in the implementation of natural gas transit is given.The article is divided into four parts:The first chapter explains the Development History of the freedom of transit system and the main contemporary sources of international law.The freedom of transit,which originated in the Hugo Grotius era,was described as a limited "right of passage" and was adopted by later transit rules.After the World War II,the freedom of transit regime was incorporated into the international legal system through a series of international legal norms These include,inter alia,the convention and Statute on the regime of international navigable waterways,the Convention and Statute on freedom of transit,and the 1947 General Agreement on Tariffs and Trade The freedom of transit was transferred from the perspective of freedom of the sea to land and internal waters,and extended from the realm of public law to the realm of international trade and economics.The contemporary sources of International Law on freedom of transit,such as the GATT 1994,the Energy Charter Treaty and later the agreement on trade facilitation,respond to the concerns of the economy and trade regarding transit needs Although the Energy Charter Treaty specifies specific rules on the freedom of transit of goods,it is still a regional multilateral treaty in nature and can not be widely applied.The rules on freedom of transit in the agreement on trade facilitation,which in fact follow the freedom of transit in GATT 1994,do not address the inevitable problems in the implementation of freedom of transit in the field of natural gas,there is also room for discussion of the GATT 1994 freedom of transit regulation below.Chapter two mainly expounds the application of GATT freedom of transit rules in the transit of pipeline natural gas.The general meaning of the term "route" in the dictionary should include pipeline facilities.Secondly,the "most convenient" route is determined.The "most convenient" route here is considered from the perspective of Operation Business Not at the discretion of either the transit state or the transit dependent state.With regard to the question of the boundaries of freedom of transit,the group of experts considers that the term "freedom" in GATT 5.2 should be defined as "unrestricted use",provided that,in accordance with the rules of treaty interpretation,it is regarded as unrestricted freedom,the prohibition of "unnecessary" and "unreasonable" delay in Article 5,Paragraphs 3 and 4,would be unnecessary."natural gas" should be identified as "goods" in GATT 5.1 through "commodity description and coding system" and the commitments made by some countries upon accession to WTO;The "pipeline" is identified as a means of transport in GATT 5.1 through the treaty context and the object and purpose of the treaty.Chapter three discuss the difficulties in the application of GATT 5.2 in natural gas transit.The rights and obligations of "third party access" and "new pipeline" can not be directly derived from the provisions themselves.Opponents argue that the construction of the pipeline is a sensitive political issue,a matter of sovereign decision within the scope of a state's sovereignty,but that it may well defeat the purpose of the treaty While third-party access tends to reduce transport costs and improve operational efficiency,the treaty itself does not provide a definitive answer as to whether transit states have a treaty obligation to agree to the entry of natural gas from transit demand states into pipelines.In Chapter 4,we seek the countermeasures of GATT 5.2 on the transit of pipeline natural gas and strengthen the operability of GATT 5.2 in the freedom of goods transit.The first is the conclusion of an implementing agreement whereby the GATT 5.2 freedom of transit in effect confers on both the transit state and the transit dependent state the right and obligation to conclude some kind of agreement on transit.The second is to invoke the "effective right principle",since the treaty gives the fundamental right of transit goods,in order to make this right to be realized,it is necessary to improve its subsidiary rights,including third-party access and new pipelines.The third is to invoke the principle of economic cooperation and the principle of transparency.