In an August 1, 2016 letter to the Commodity Futures Trading Commission (CFTC) and the Environmental Protection Agency (EPA), the Renewable Fuels Association (RFA) called for an...04 August 2016
LNG Exports: A Big Benefit for the US and Global Economy
The export report makes it more likely that natural gas production for domestic use and for exports will continue to expand. Export restrictions, should they be adopted, would not only reduce our national wealth, but could run afoul of global trading rules. The General Agreement on Tariffs and Trade specifically allows most WTO members to impose export restrictions in the form of duties and taxes—but not through other means, such as quotas or minimum export prices. On the other hand, the Energy Department’s authority to license exports allows for quantitative and arguably price restrictions, but does not allow export taxes or duties. Were DOE to impose meaningful quantitative limits on LNG exports, however, it would not only hurt the US economically; but it may also violate US international obligations.
For more information, please contact a member of Hogan Lovells’ Energy or International Trade and Investment groups.
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