(e) Supervise the work of all sub-committees and working groups;
(f) Endeavour to resolve disputes regarding the interpretation or application of this Agreement;
(g) Consider and adopt amendments as provided for in this Agreement; and
(h) Consider any other matter that may affect the operation of this Agreement.
3. The Joint Committee may take decisions as provided for in this Agreement. On other matters, the Joint Committee may make recommendations. The Joint Committee shall take decisions and make recommendations by consensus.
4. Where this Agreement foresees that a provision relates only to the Philippines and one or several EFTA States, consensus shall only involve the Parties concerned, and the decision or recommendation shall apply only to those Parties.
5. If a representative of a Party in the Joint Committee has accepted a decision subject to the fulfilment of domestic legal requirements, the decision shall enter into force on the date that the last Party notifies that its internal requirements have been fulfilled, unless otherwise specified by the decision.
6. The Joint Committee shall meet within one year of the entry into force of this Agreement. Thereafter, it shall meet whenever necessary but normally every two years.
Its meetings shall be co-chaired by one of the EFTA States and the Philippines. The Joint Committee shall establish its rules of procedure. Each Party may request at any time, through a notice in writing to the other Parties, that a special meeting of the Joint Committee be held. Such a meeting shall take place within 30 days from the receipt of the request, unless the Parties agree otherwise.
Chapter 13. Dispute Settlement
Article 13.1. Objective
The objective of this Chapter is to provide an efficient and transparent mechanism for the avoidance and settlement of disputes arising under this Agreement.
Article 13.2. Scope and Coverage
1. The provisions of this Chapter shall apply to the settlement of any dispute concerning the interpretation or application of this Agreement.
2. For purposes of this Chapter, the terms "Party", "party to the dispute", "complaining Party" and "Party complained against" can denote one or more Parties.
3. Where disputes regarding the same matter arising under this Agreement and the WTO Agreement, the complaining Party shall consider dispute settlement in the WTO. The dispute may however, be settled in either forum at the discretion of the complaining Party. The forum thus selected shall be used to the exclusion of the other.
4. For the purposes of paragraph 3, dispute settlement procedures under the WTO Agreement are deemed to be selected by a Party's request for the establishment of a panel under Article 6 of the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes, whereas dispute settlement procedures under this Agreement are deemed to be selected upon a request for arbitration pursuant to paragraph 1 of Article 13.5 (Establishment of Arbitration Panel).
Article 13.3. Good Offices, Conciliation or Mediation
1. Good offices, conciliation and mediation are procedures that are undertaken voluntarily if the Parties so agree. They may begin and be terminated at any time. They may continue while proceedings of an arbitration panel established in accordance with this Chapter are in progress.
2. Proceedings involving good offices, conciliation and mediation shall be confidential and without prejudice to the rights of any Parties in any further proceedings.
Article 13.4. Consultations
1. The Parties shall make every attempt through cooperation and consultations to reach a mutually acceptable solution of any matter raised in accordance with this Article.
2. A Party may request consultations with another Party with respect to any measure it considers inconsistent with this Agreement. The Party receiving the request for consultations shall accord due consideration to the request and provide adequate opportunity for such consultations.
3. The Party requesting consultations shall make the request in writing, setting out the reasons for the request, including identification of the measure, which it considers inconsistent with this Agreement. The Party requesting consultations shall at the same time notify the other Parties in writing of the request. The Party to which the request is made shall reply within ten days from the receipt of the request.
4. Consultations shall take place in the Joint Committee, unless the Parties making and receiving the request for consultations agree otherwise.
5. The consultations shall commence within:
(a) 15 days from the receipt of the request in cases of urgency, including perishable goods; or
(b) 30 days from the receipt of the request for all other matters.
6. The consulting Parties shall provide sufficient information, including making available for the consultations personnel of relevant government agencies, to enable a full examination of whether the measure is inconsistent with this Agreement or not.
7. The consultations shall be confidential and without prejudice to the rights of the Parties in any further proceedings. The Parties shall treat any confidential information exchanged in the course of consultations in the same manner as the Party providing the information.
8. The consulting Parties shall inform the other Parties of any mutually agreed resolution of the matter.
Article 13.5. Establishment of Arbitration Panel
1. The complaining Party may request the establishment of an arbitration panel if:
(a) The Party to which the request is made does not reply within ten days from the receipt of the request;
(b) The Party complained against does not enter into consultations in accordance with the time periods specified in Article 13.4 (Consultations); or
(c) The consultations fail to resolve a dispute within:
(i) 30 days from the receipt of the request for consultations in cases of urgency, including perishable goods;
(ii) 60 days from the receipt of the request for consultations regarding any other matter.
2. Any request for the establishment of an arbitration panel shall identify:
(a) The specific measures at issue; and
(b) The legal and factual basis for the complaint.
3. A copy of the request shall be communicated to the other Parties so that they may determine whether to participate in the arbitration process.
4. The arbitration panel shall consist of three members who shall be appointed in accordance with the Optional Rules for Arbitrating Disputes between Two States of the Permanent Court of Arbitration, as effective from 20 October 1992 (hereinafter referred to as the "Optional Rules"), mutatis mutandis.
5. The date of establishment of the arbitration panel shall be the date on which the Chairperson is appointed.
6. Unless the parties to the dispute agree otherwise within 20 days from the receipt of the request for the establishment of the arbitration panel, the terms of reference for the arbitration panel shall be:
"To examine, in light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of an arbitration panel pursuant to Article 13.5 (Establishment of Arbitration Panel) and to make findings of law and fact together with the reasons, as well as recommendations, if any, for the resolution of the dispute and the implementation of the ruling."
7. Whenever feasible, a single arbitration panel should be established to examine complaints relating to the same matter where more than one Party requests the establishment of an arbitration panel or where the request involves more than one Party complained against.
8. A Party which is not a party to the dispute shall be entitled, on delivery of a written notice to the parties to the dispute, to make written submissions to the arbitration panel, receive written submissions, including annexes, from the parties to the dispute, attend hearings and make oral statements.
Article 13.6. Arbitration Panel Procedures
1. Unless otherwise specified in this Agreement or agreed between the parties to the dispute, the procedures of the panel shall be governed by the Optional Rules, mutatis mutandis.
2. The arbitration panel shall examine the matter referred to it in the request for the establishment of an arbitration panel in light of the relevant provisions of this Agreement interpreted in accordance with rules of interpretation of public international law.
3. The arbitration panel should consult regularly with the parties to the dispute and give them adequate opportunity to develop a mutually acceptable solution. The arbitration panel shall provide for at least one hearing for the parties to the dispute to present their case to the arbitration panel.
4. The language of any proceedings shall be English. The hearings of the arbitration panel shall be open to the public, unless the parties to the dispute agree otherwise or the arbitration panel decides to close the hearing for the duration of any discussion of confidential information.
5. There shall be no ex parte communication with the arbitration panel concerning matters under its consideration.
6. A Party's written submissions, written versions of oral statements and responses to questions put by an arbitration panel shall, at the same time as it is submitted to the arbitration panel, be transmitted by that Party to the other party to the dispute.
7. The Parties, the panel and any individual involved in the arbitration proceedings shall treat as confidential the information submitted to the arbitration panel, which has been designated as confidential by the Party submitting the information.
8. The arbitration panel shall make its ruling by consensus. If the arbitration panel is unable to reach consensus, it shall make its ruling by majority vote. Any arbitrator may furnish separate opinions on matters not unanimously agreed. The arbitration panel shall not disclose which arbitrators are associated with majority or minority opinions. The deliberations of the arbitration panel and the initial report shall be kept confidential.
Article 13.7. Panel Reports
1. The arbitration panel should submit to the parties to the dispute an initial report containing its findings and rulings as well as recommendations, if any, not later than 90 days from the establishment of the arbitration panel. The parties to the dispute may submit comments on the initial report, in writing, to the arbitration panel within 15 days from the receipt of the initial report. The arbitration panel should present its final report to the Parties within 30 days from the submission of the initial report. The findings of the final panel report shall include a discussion of the comments made by the parties to the dispute.
2. The final report, as well as any report under Articles 13.9 (Implementation of the Final Panel Report) and 13.10 (Compensation and Suspension of Benefits), shall be communicated to the Parties. A party to the dispute may make the report publicly available, subject to paragraph 7 of Article 13.6 (Arbitration Panel Procedures).
3. Any ruling of the arbitration panel under any provision of this Chapter shall be final and binding on the parties to the dispute.
Article 13.8. Suspension or Termination of Arbitration Panel Proceedings
1. Where the parties to the dispute agree, an arbitration panel may suspend its work at any time for a period not exceeding 12 months. If the work of an arbitration panel has been suspended for more than 12 months, the arbitration panel's authority for considering the dispute shall lapse, unless the parties to the dispute agree otherwise.
2. The proceedings of an arbitration panel shall be terminated:
(a) If the parties to the dispute agree by jointly notifying in writing the Chairperson of the arbitration panel; or
(b) If a complaining party withdraws its complaint at any time before the initial report has been issued.
3. An arbitration panel may, at any stage of the proceedings prior to the release of the final report, propose that the parties to the dispute seek to settle the dispute amicably.
Article 13.9. Implementation of the Final Panel Report
1. The Party complained against shall promptly comply with the ruling in the final report. If it is impracticable to comply immediately, the parties to the dispute shall endeavour to agree on a reasonable period of time to do so. In the absence of such agreement within 45 days, from the issuance of the final report, either party to the dispute may request the original arbitration panel to determine the length of the reasonable period of time, in light of the particular circumstances of the case. The ruling of the arbitration panel should be given within 60 days from the receipt of that request.
2. The Party complained against shall notify the complaining Party of the measure adopted in order to comply with the ruling in the final report, as well as provide a detailed description of how the measure ensures compliance sufficient to allow the complaining party to assess the measure.
3. In case of disagreement as to the existence of a measure complying with the ruling in the final report or to the consistency of that measure with the ruling, such disagreement shall be decided by the same arbitration panel upon the request of either party to the dispute before compensation can be sought or suspension of benefits can be applied in accordance with Article 13.10 (Compensation and Suspension of Benefits).
The ruling of the arbitration panel should be given within 90 days from the receipt of that request.
Article 13.10. Compensation and Suspension of Benefits
1. If the Party complained against does not comply with a ruling of the arbitration panel referred to in Article 13.9 (Implementation of the Final Panel Report), or notifies the complaining Party that it does not intend to comply with the ruling in the final panel report, that Party shall, if so requested by the complaining Party, enter into consultations with a view to agreeing on mutually acceptable compensation. If no such agreement has been reached within 20 days from the receipt of the request, the complaining Party shall be entitled to suspend the application of benefits granted under this Agreement but only equivalent to those affected by the measure that the arbitration panel has found to be inconsistent with this Agreement.
2. In considering what benefits to suspend, the complaining Party should first seek to suspend benefits in the same sector or sectors as that affected by the measure that the arbitration panel has found to be inconsistent with this Agreement. The complaining Party that considers it is not practicable or effective to suspend benefits in the same sector or sectors may suspend benefits in other sectors.
3. The complaining Party shall notify the Party complained against of the benefits, which it intends to suspend, the grounds for such suspension and when suspension will commence, no later than 30 days before the date on which the suspension is due to take effect. Within 15 days from the receipt of that notification, the Party complained against may request the original arbitration panel to rule on whether the benefits, which the complaining Party intends to suspend are equivalent to those affected by the measure found to be inconsistent with this Agreement, and whether the proposed suspension is in accordance with paragraphs 1 and 2. The ruling of the arbitration panel should be given within 45 days from the receipt of that request. Benefits shall not be suspended until the arbitration panel has issued its ruling.
4. Compensation and suspension of benefits shall be temporary measures and shall only be applied by the complaining Party until the measure found to be inconsistent with this Agreement has been withdrawn or amended so as to bring it into conformity with this Agreement, or until the parties to the dispute have resolved the dispute otherwise.
5. At the request of a party to the dispute, the original arbitration panel shall rule on the conformity with the final report of any implementing measures adopted after the suspension of benefits and, in light of such ruling, whether the suspension of benefits should be terminated or modified. The ruling of the arbitration panel should be given within 30 days from the receipt of that request.
Article 13.11. Other Provisions
1. Whenever possible, the arbitration panel referred to in Articles 13.9 (Implementation of the Final Panel Report) and 13.10 (Compensation and Suspension of Benefits) shall comprise the same arbitrators who issued the final report. If a member of the original arbitration panel is unavailable, the appointment of a replacement arbitrator shall be conducted in accordance with the selection procedure for the original arbitrator.
2. Any time period mentioned in this Chapter may be modified by mutual agreement of the parties to the dispute.
3. When an arbitration panel considers that it cannot comply with a timeframe imposed on it under this Chapter, it shall inform the parties to the dispute in writing and provide an estimate of the additional time required. Any additional time required should not exceed 30 days.
Chapter 14. Final Provisions
Article 14.1. Annexes and Appendices
The Annexes to this Agreement, including their Appendices, constitute an integral part of this Agreement.
Article 14.2. Amendments
1. Any Party may submit proposals for amendments to this Agreement to the Joint Committee for consideration and recommendation.
2. Amendments to this Agreement shall be submitted to the Parties for ratification, acceptance or approval in accordance with their respective legal requirements. The text of the amendments and the instruments of ratification, acceptance or approval shall be deposited with the Depositary.
3. Amendments to this Agreement shall enter into force on the first day of the third month following the date on which at least one EFTA State and the Philippines have deposited their instrument of ratification, acceptance or approval with the Depositary. In relation to an EFTA State depositing its instrument of ratification, acceptance or approval after that, the amendments shall enter into force on the first day of the third month following the deposit of its instrument.
4. The Joint Committee may decide to amend the Annexes and Appendices to this Agreement. The decision shall enter into force on the first day of the third month following the notification by the last Party that its internal requirements have been fulfilled. Subject to the domestic laws, rules and regulations of the Parties, the Joint Committee may agree on different entry into force provisions.
5. Amendments regarding issues related only to one or several EFTA States and the Philippines shall be agreed upon by the Parties concerned.
6. If its legal requirements permit, a Party may apply any amendment provisionally, pending its entry into force for that Party. Provisional application of amendments shall be notified to the Depositary.
Article 14.3. Accession
1. Any State becoming a Member of EFTA may accede to this Agreement, provided that the Joint Committee approves its accession, on terms and conditions to be agreed upon by the Parties and the acceding State.
2. The instrument of accession shall be deposited with the Depositary. In relation to an acceding State, this Agreement shall enter into force on the first day of the third month following the deposit of its instrument of accession, or the approval of the terms of accession by the existing Parties, whichever is later.
Article 14.4. Withdrawal and Expiration
1. Each Party may withdraw from this Agreement by means of a written notification to the Depositary. The withdrawal shall take effect six months after the date on which the notification is received by the Depositary.
2. If the Philippines withdraws, this Agreement shall expire when its withdrawal becomes effective.
3. Any EFTA State which withdraws from the Convention establishing the European Free Trade Association shall, ipso facto on the same day as the withdrawal takes effect, cease to be a Party to this Agreement.
Article 14.5. Entry Into Force
1. This Agreement is subject to ratification, acceptance or approval in accordance with the respective legal requirements of the Parties. The instruments of ratification, acceptance or approval shall be deposited with the Depositary.
2. This Agreement shall enter into force on the first day of the third month following the date on which at least one EFTA State and the Philippines have deposited their instrument of ratification, acceptance or approval with the Depositary.
3. In relation to an EFTA State depositing its instrument of ratification, acceptance or approval after this Agreement has entered into force, this Agreement shall enter into force on the first day of the third month following the deposit of its instrument.
4. If its respective legal requirements permit, a Party may apply this Agreement provisionally, pending its entry into force for that Party. Provisional application of this Agreement shall be notified to the Depositary.
Article 14.6. Depositary
The Government of Norway shall act as Depositary.
Conclusion
IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement.
Done at Bern, this 28th day of April 2016, in one original in English, which shall be deposited with the Depositary, who shall transmit certified copies to all the Parties.
For Iceland
For the Philippines
For the Principality of Liechtenstein
For the Kingdom of Norway
For the Swiss Confederation