LNG Export Process may Violate WTO Agreements, Says NAM
The U.S. export procedure for liquefied natural gas (LNG) and coal may be in violation of international treaties, said a National Associations of Manufacturers (NAM) commissioned report dated November 2013. If foreign nations challenge U.S. LNG and coal export restrictions at the World Trade Organization (WTO), WTO dispute officials may rule in favor of the challengers, said the report. Former WTO Appellate Body Chairman James Bacchus authored the report.
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“Ongoing delays and licensing requirements and processes are starting to raise questions about the United States’ own commitment to key principles of the WTO that bind not only the United States, but also 158 other countries,” said Bacchus in the report. “U.S. action -- or inaction as the current situation appears -- raises important questions about the United States’ implementation of these WTO rules and raises the specter that other WTO members may follow suit in ways that would undermine U.S. competitiveness globally.”
The report aimed to address two fundamental questions, according to a Dec. 3 NAM press release:
- Do unreasonable delays by the Department of Energy to issue licenses to export LNG to foreign countries constitute, in and of itself, a violation of our international obligations under the WTO?
- Do efforts by state and local authorities in the Pacific Northwest to broaden unduly the scope of the environmental review process for planned coal export terminals beyond the federal scope, and the resulting delay, constitute a violation of our international obligations under the WTO?
The House passed Natural Gas Pipeline Permitting Reform Act, HR-1900 (here), Nov. 14. Sponsors say the bill aims to expedite LNG export procedure (see 13112003). “Manufacturers need strong and smart energy and trade policies to expand manufacturing in the United States and remain globally competitive,” said NAM President Jay Timmons in reaction to the report. “Unfortunately, it has become increasingly difficult to get a permit to do just about anything in the United States, and infrastructure projects like LNG and coal export terminals are crippled by delays and regulatory obstacles.”
Email ITTNews@warren-news.com for a copy of the press release.