Do We Need a World Financial Organization?

Abstract

Trade in the energy sector is nowadays making, quite abruptly, its entrance into the general framework of the multilateral trading system. This chapter argues that a new Energy Agreement (EA) within the World Trade Organisation (WTO) framework would raise more problems than it would give solutions. It evaluates the adequacy of the sectoral approach when it comes to trade in the energy sector. The chapter provides an overview of the experience so far, and focuses on the possibility to use existing models for designing a new EA. It then examines whether this approach could be adequately transposed to the energy sector. The ideas argue that an EA would offer a sort of a comprehensive framework for trade in energy, both for goods and services, thus avoiding the classic division of the Marrakech Agreement. The sectoral approach is more palpable in the case of certain agreements aiming at a further liberalization in sectors already covered by the general rules.