Cartel Price Controls vs. Free Trade : A Study of Proposals to Challenge OPEC's Influence in the Oil Market Through WTO Dispute Settlement

Part I of this Comment describes the OPEC practices that form the basis of opponents’ complaints, including OPEC member countries’ efforts to influence the world oil market and help oil producers achieve certain rates of return, as well as the General Agreement on Tariffs and Trade8 (“GATT”) provisions under which such conduct is called intoquestion. Part II.A finds OPEC’s practices in violation of the GATT Article XI prohibition on quantitative export restrictions. Part II.B contemplates a justification for OPEC’s tactics as a legitimate general exception under the GATT Article XX(g). Part III counsels against challenging OPEC’s practices at the WTO, and proposes the creation of a new multilateral energy trading framework that better serves the divergent goals of OPEC and the WTO. This comment concludes that proposals to initiate WTO dispute settlement against OPEC member countries should be avoided not only because they are likely to be ineffective, but also because preferable alternatives exist for reforming the global energy trade