AN ANALYSIS OF THE METHOD OF DISPUTE SETTLEMENT IN ENERGY CHARTER TREATY COMPARED WITH WORLD TRADE ORGANIZATION

Abstract

The present study by applying an analytical-descriptive method has analyzed the method of dispute settlement in energy charter treaty compared with world trade organization. The research findings show that the trial process of dispute settlement in energy charter treaty which is derived from GAT and World Trade Organization dispute settlement the process is shorter and faster because of the lack of revision foundation and mostly follow a diplomatic procedure (rather than legal solutions). The other legal advantage of the energy charter treaty is the support of foreign investor that in contrast to the supportive rules of the World Trade Organization, the energy charter treaty allows freedom of action to the host countries in terms of selecting the investor and arranging the intended framework and conditions and after the investment applythe ruling principles of the World Trade Organization such as the most-favored nation principle of national treatment table etc. The system of dispute settlement in the energy charter treaty is mainly on the basis of arbitration and the players of the energy subdivisions are mainly private foundations. In contrast to the World Trade Organization whose judicial system is exclusively assigned to verify the state or regional organizations’ cases the dispute settlement system of the energy charter treaty by the generalization of its dispute settlement rules (that are inspired from the World Trade Organization) verify the cases about investor and the host state.