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The Secretariat produced this study as part of an effort to provide increased transparency about the application of the WTO rules on trade in goods in the energy sector. Its purpose is to help governments, firms and interested individuals to better understand how the rules of the multilateral trading system apply to trade in energy.

During the July 1997 G8 Summit in Aspen, President Yeltsin invited the G8 to participate in an Energy Ministerial in Moscow in the spring of 1998. The G8, in preparing the agenda of the meeting, identified energy transit as a strategic issue to be discussed. The Energy Charter Secretariat was invited to prepare a background paper. This paper presents an analysis of the key issues associated with grid-bound energy transit and examines the role of governments, particularly the G8 governments, in adopting a multilateral approach to address and meet some of the challenges of energy transit in the future.