Towards regional energy co-operation in the Asia-Pacific: some lessons from the Energy Charter Treaty

The article examines the prospect of a regional energy charter treaty for the Asia-Pacific region and the lessons that could be learnt towards that end, at least in respect of certain matters, from the ECT 1994. It focuses on certain important major aspects of the ECT, viz., protection of foreign investment in energy, dispute resolution mechanisms and processes, energy and environment issues, and matters concerning the transit of energy across the borders of States. The ECT prescriptions regarding the foregoing matters will be examined in the Asia-Pacific context in order to assess their suitability for adoption. In order to get a comprehensive idea, the proposal posed here will be tested against the relevant economic, political, cultural, legal and current policy backgrounds in the Asia-Pacific. It would appear that the ECT regime cannot be transplanted in toto into a prospective Asia-Pacific Energy Charter Treaty. However, it may prove sound to adopt the ECT prescriptions mutatis mutandis in the Asia-Pacific context. This would add yet a new chapter to the growing field of international economic law.