The paper Fossil Fuel Subsidy Reform in the WTO: Options for Constraining Dual Pricing in the Multilateral Trading System discusses the practice of energy dual pricing in the broader context of fossil fuel subsidy reform. The contribution explores avenues for constraining dual pricing, which is approached as a fossil fuel subsidy, within the framework of the WTO. It does so by proposing options under existing rules, as well as suggesting changes to the system beyond current rules.
The piece suggests that WTO members wishing to take action against dual-pricing policies maintained by other members could explore bringing a case to dispute settlement on the basis of specific provisions under the General Agreement on Tariffs and Trade (GATT), the Agreement on Subsidies and Countervailing Measures (ASCM) and/or the Anti-Dumping Agreement (ADA). Bringing a case would send a strong signal that dual-pricing policies are not immune to being challenged in a WTO dispute. Moreover, it is likely that this would function as a trigger to rapidly include talks on broader fossil fuel subsidy reform on the WTO agenda.
The present paper seeks to examine the ways in which current trade policies and frameworks enable or hold back the pressing need for further development of clean energy. Based on this analysis, it identifies a set of policy options for the global trade system to support the scale-up of CETs.