Are Export Controls under the Australian Domestic Gas Security Mechanism (ADGSM) Challenge Proof?

The Australian Domestic Gas Security Mechanism (ADGSM) is designed to ensure sufficient gas supply in the domestic market. However, the measure has certain vulnerabilities due to sovereign risk which may expose Australia to challenges in the World Trade Organisation (WTO) or in an investor-state dispute settlement (ISDS) setting. To avoid liability, Australia must carefully use the ADGSM in light of WTO rulings. In doing so, Australian policymakers must give careful attention to concepts such as “critical” shortage, “necessary” and “essential”. The importance of WTO jurisprudence cannot be understated because in the past ISDS panels have also borrowed concepts from the WTO to resolve investor-state disputes. Overall, the article argues that the ADGSM must not be extended beyond its slated period and breathing room offered by it must be prudently used to solve the pricing issue faced by domestic gas users.