Abstract
Energy is a necessary prerequisite to growth and development of emerging India. India has an Integrated Energy Policy to ensure that energy needs of its citizens are met. It has a Hydrocarbon Vision 2025 to guide its oil and gas exploration and production, supply and trade, and consumption and conservation. Securing adequate imports of oil and gas to meet its burgeoning needs is a major policy objective of the Government of India, driving the mission of its Ministry of Petroleum and Gas. Economic and trade ties of India with OPEC members and other oil and gas producers have prospered. Many of these suppliers are members of various coalitions of India in the WTO. In the event that negotiations commence on trade and energy security, such cooperation will be mutually rewarding. This chapter analyzes the composition and India’s energy policy and trade, functioning of trade regimes of OPEC members, and some other main suppliers of oil and gas to India with a view to offer a positive agenda for such negotiations. It concludes inter alia that India has much in common with members of the WTO from the Middle East to develop a common agenda on energy security and tariffs for primary oil and gas and petroleum products.
Views expressed are personal.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
Petroleum, oil, and hydrocarbons are terms used interchangeably in this chapter, and include natural gas, except where separated specifically or through context.
- 2.
With the exception of Gabon, Indonesia, and Kuwait.
- 3.
Note that agriculture was also largely out of the purview of GATT disciplines.
- 4.
None of the OPEC members were founding fathers of GATT. US became a net exporter of oil in 1948, and UK and Norway, two other founding fathers, discovered oil only in 1969. Of the OPEC members, all except Algeria, Iran, and Iraq are now members, and these three are observers with continuing or static accession negotiations. All non-OPEC major suppliers are now WTO members.
- 5.
OPEC webpage: http://www.opec.org/opec_web/en/about_us/25.htm (accessed in October 2012).
- 6.
http://www.opec.org/opec_web/en/data_graphs/335.htm (accessed in November 2012).
- 7.
http://www.opec.org/opec_web/en/data_graphs/40.htm (accessed in November 2012).
- 8.
http://www.opec.org/opec_web/static_files_project/media/downloads/publications/OPECLTS.pdf (accessed in December 2012).
- 9.
WTO General Council Decision of 1 August 2004, available at: http://wto.org/english/tratop_e/dda_e/draft_text_gc_dg_31july04_e.htm#invest_comp_gpa.
- 10.
- 11.
Information in this section of the chapter has been taken from the WTO Trade Policy Reviews of the mentioned countries/territories, from the websites of the Oil Ministries of these countries, or from the trade statistics of India on the website of the Department of Commerce, GOI.
- 12.
- 13.
Reviving Article 8.3(c) of the WTO Agreement on Subsidies and Countervailing Measures could be one such effort.
- 14.
Article III.9 of GATT 1994.
- 15.
Article XI.1 of GATT 1994.
- 16.
While the WTO disputes in India-QRs and Japan-Semi-conductors cases have ruled that Article XI.1 is comprehensive enough to cover export restrictions, there has been no ruling on energy dual pricing being covered under ‘other measures’.
- 17.
Including under the Energy Charter Treaty of the European Union.
Bibliography
Broome SA (2006) Conflicting obligations for oil exporting nations? Satisfying membership requirements of both OPEC and the WTO. George Wash Int Law Rev 38
Clarke K (2010) India’s downstream petroleum sector: refined product pricing and refinery investment. Working paper, International Energy Agency
Corbeau AS (2010) Natural gas in India. Working paper, International Energy Agency (OECD/IEA)
Desta MG (2003) The Organization of Petroleum Exporting Countries, the World Trade Organization, and regional trade agreements. J World Trade 37(3):523–551
Ghosh P (2009) National action plan for climate change. Prime Minister’s council on climate change. www.pmindia.nic.in. Accessed Oct 2012
Gulen SG (1996) Is OPEC a cartel? Evidence from co-integration and causality tests. Boston College, Chestnut Hill
HM Treasury (2008) Global commodities: a long term vision for stable, secure and sustainable global markets. www.hm-treasury.gov.uk
International Energy Agency (2010) Energy poverty: how to make modern energy access universal
International Energy Agency (2012) Worldwide engagement for sustainable energy strategies. www.iea.org. Accessed Nov 2012
Jackson JH, Davey WJ, Sykes AO (1995) Legal problems of International Economic Relations: cases, materials and text, 3rd edn. West Publishing, St Paul
KBC Advanced Technologies Plc. UK (2012) Long term tanker market outlook. Report prepared in conjunction with E. A. Gibson Shipbrokers Ltd.
Kojima M (2009) Government responses to oil price volatility: experience of 49 developing countries, extractive industries for development series #10, World Bank. www.worldbank.org. Accessed Nov 2012
Luthra & Luthra Law Offices, Draft report on dual pricing of natural resources. Submitted to the United Nations Conference on Trade and Development—India Programme. http://wtocentre.iift.ac.in/UNCTAD/16.pdf
Ministry of Commerce and Industry, Government of India (2012) Foreign trade performance analysis. http://commerce.nic.in/ftpa/default.asp. Accessed Sept 2012 and Feb 2013
Ministry of Petroleum and Natural Gas, Government of India (2011–2012) Basic statistics of petroleum and natural gas. http://petroleum.nic.in/petstat.pdf. Accessed Oct 2012
Ministry of Petroleum and Natural Gas, Government of India (2011) Report of the working group on petroleum and natural gas sector for the 12th Five Year Plan-2012-17. http://petroleum.nic.in/reports.htm. Accessed Nov 2012
Ministry of Petroleum and Natural Gas, Government of India (2012) Petroleum prices and under recoveries, Petroleum Planning and Analysis Cell (PPAC). http://ppac.org.in/WRITEREADDATA/PS_oil_prices.pdf. Accessed Dec 2012
Ministry of Petroleum and Natural Gas, Government of India, Annual Reports, Various Years (2005–2011) http://petroleum.nic.in/reports.htm. Accessed Nov 2012
Ministry of Petroleum and Natural Gas, Government of India, India Hydrocarbon Vision 2025. http://petroleum.nic.in/reports.htm. Accessed Nov 2012
Ministry of Petroleum and Natural Gas, Government of India, Strategic Plan 2011-17. http://petroleum.nic.in/stratreport.pdf. Accessed Nov 2012
OPEC (2012) Monthly oil market report. http://www.opec.org/opec_web/static_files_project/media/downloads/publications/MOMR_September_2012.pdf
OPEC Annual Reports, Various Years (2002–2012). ISSN 0474-6317
OPEC Long Term Strategy (2012) www.opec.org
OPEC Statute (2008) www.opec.org. Accessed Oct 2012
OPEC Annual Statistical Bulletin (2012) SSRN 0475-0608
Ruta M, Venables AJ (2012) International trade in natural resources: practice and policies. WTO staff working paper ERSD-2012-07, WTO. http://www.wto.org/english/res_e/reser_e/ersd201207_e.pdf
Selivanova Y (ed) (2011) Global trade Law Series, Regulation of Energy in International Trade Law, WTO, NAFTA and Energy Charter. Kluwer Law International, Leiden
UNCTAD (2000) Trade agreements, petroleum and energy policies, UNCTAD/ICTD/TSB/9. www.unctad.org. Accessed Sept 2012
USITC (1989) Foreign investment barriers or other restrictions that prevent foreign capital from claiming the benefits of foreign government programs. Report to the USTR and the congress on investigation no. 332-268 under Section 332(g) of the Tariff Act of 1930; USITC Publication 2212
WTO (1995) The legal texts: results of the Uruguay Round of Multilateral Trade Negotiations
WTO (2003) Negotiations on environmental goods: efficient, lower-carbon and pollutant-emitting fuels and technologies. Submission by the State of Qatar, TN/TE/W/19
WTO (2010a) World Trade Report 2010: trade in natural resources
WTO (2010b) Energy services—background note by the secretariat, (S/C/W/311)
WTO Trade Policy Reviews of Angola, Brazil, Egypt, Kuwait, Malaysia, Nigeria, Oman, Qatar, Saudi Arabia, UAE and Venezuela, Various Years (2002–2012) www.wto.org. Accessed Sept 2012 and Feb 2013
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Centre for WTO Studies (CWS), IIFT, New Delhi
About this chapter
Cite this chapter
Kaushik, A. (2014). India, OPEC, and an Agenda for Energy Security. In: Mathur, S. (eds) Trade, the WTO and Energy Security. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1955-2_5
Download citation
DOI: https://doi.org/10.1007/978-81-322-1955-2_5
Published:
Publisher Name: Springer, New Delhi
Print ISBN: 978-81-322-1954-5
Online ISBN: 978-81-322-1955-2
eBook Packages: Humanities, Social Sciences and LawLaw and Criminology (R0)