(b) if the consultations fail to resolve a dispute within:
(i) 20 days after the date of receipt of the request for consultations in cases of urgency including perishable goods;
(ii) 60 days after the date of receipt of the request for consultations regarding any other matter; or
(iii) such other period as the Parties to the dispute may mutually agree.
2. A request made pursuant to paragraph 1 shall identify the specific measures at issue and provide details of the factual and legal basis of the complaint to be addressed by the panel, including the provisions of this Agreement, sufficient to present the problem clearly.
3. The Responding Party shall, not later than 7 days from the date of the request for the establishment of a panel, acknowledge receipt of the request by way of notification to the Complaining Party, indicating the date on which the request was received, otherwise the date when the request is made shall be deemed to be the date of receipt of the request.
4. Where a request is made pursuant to paragraph 1, a panel shall be established in accordance with Article 7.9 (Establishment of Panel).
Article 7.9. ESTABLISHMENT OF PANEL
1. A panel requested pursuant to Article 7.8 (Request for Establishment of a Panel) shall be established in accordance with this Article.
2. Unless the Parties to the dispute otherwise agree, the panel shall consist of three panellists. All appointments and nominations of panellists under this Article shall conform fully with the requirements in Article 7.10 (Panellists: Qualifications and Competence).
3. Within 15 days of the date of the receipt of a request under Article 7.8, the Parties to the dispute shall enter into consultations with a view to reaching agreement on the procedures for composing the panel, taking into account the factual, technical and legal circumstances of the dispute. Any such procedures agreed upon shall also be used for the purposes of paragraph 5 of Article 7.10 (Panellists: Qualifications and Competence).
4. If the Parties to the dispute are unable to reach agreement on the procedures for composing the panel within 30 days of the date of the receipt of the request under Article 7.8 (Request for Establishment of a Panel) for Establishment of Panels, either Party to the dispute may at any time thereafter notify the other Party to the dispute that it wishes to use the procedures set forth in paragraphs 5 to 7 of this Article, and where such a notification is made, the panel shall be composed accordingly.
5. The Complaining Party shall appoint one panellist within 15 days of the date of the receipt of the notification referred to in paragraph 4 of this Article. The Responding Party shall appoint one panellist within 20 days of the date of the receipt of the notification referred to in paragraph 4 of this Article. Parties shall notify the appointment of their respective panellist to each other on the date of such appointment.
6. Following the appointment of the panellists in accordance with paragraph 5 of this Article, the Parties to the dispute shall mutually agree on the appointment of the third panellist who shall serve as the chair of the panel. To assist in reaching this agreement, each Party to the dispute may provide to the other Party a list of up to three nominees for appointment as the chair of the panel. If the Parties to the dispute have not agreed on the chair of the panel within 15 days of the appointment of the second panellist, the two appointed panellists shall designate by mutual agreement the third panellist who shall chair the panel.
7. If all three panellists have not been appointed within 70 days of the receipt of a request referred to in Article 7.8 (Request for Establishment of Panel), any Party to the dispute may request the Director-General of the WTO to make the remaining appointments within a further period of 15 days. Any lists of nominees which were provided under paragraph 6 shall also be provided to the Director-General of the WTO and may be used in making the required appointments.
8. The date of establishment of the panel shall be the date on which the last panellist is appointed.
Article 7.10. PANELLISTS: QUALIFICATIONS AND COMPETENCE
1. All panellists shall:
(a) have expertise or experience in law, international trade, other matters covered by this Agreement, or the resolution of disputes arising under international trade agreements;
(b) be chosen strictly on the basis of objectivity, reliability, and sound judgement;
(c) be independent of, and not be affiliated with or take instructions from, any Party to the dispute;
(d) not have dealt with the matter in any capacity;
(e) disclose, to the Parties to the dispute, information which may give rise to justifiable doubts as to their independence or impartiality; and
(f) comply with the code of conduct set out in Annex 16 (Code of Conduct for Panellists).
2. Where a Party to the dispute considers that a panellist does not comply with the requirements of the code of conduct referred to in paragraph 1(f), the Parties to the dispute shall consult and if so agreed, replace that panellist in accordance with paragraph 5 of this Article.
3. Unless the Parties to the dispute otherwise agree, the panellists shall neither be nationals of the Parties to the dispute nor have their usual place of residence in the territory of a Party to the dispute.
4. Panellists shall serve in their individual capacities and not as government representatives, nor as representatives of any organization. Parties shall not give them instructions nor seek to influence them as individuals with regard to matters before a panel.
5. If a panellist appointed under Article 7.9 resigns or becomes unable to act, a successor panellist shall be appointed in the same manner as prescribed for the appointment of the original panellist and shall have all the powers and duties of the original panellist. The work of the panel shall be suspended until the successor panellist is appointed. In such a case, any time period applicable to the panel proceedings shall be suspended during the appointment of the successor.
Article 7.11. RECONVENING OF PANEL
Where a panel is re-convened under Article 7.16 (Compliance Review) or Article 7.17 (Compensation and Suspension of Concession or other Obligations) the reconvened panel shall, where possible, have the same panellists as the original panel. Where this is not possible, the replacement panellist(s) shall be appointed in the same manner as prescribed for the appointment of the original panellist(s), and shall have all the powers and duties of the original panellist(s).
Article 7.12. FUNCTIONS OF PANEL
1. The panel shall make an objective assessment of the matter before it, including an objective assessment of:
(a) the facts of the case;
(b) the applicability of and conformity with the relevant provisions of this Agreement cited by the Parties to the dispute; and
(c) whether the Responding Party has failed to carry out its obligations under this Agreement.
2. The panel shall have the following terms of reference unless the Parties to the dispute agree otherwise within 20 days from the date of the establishment of the panel:
"To examine, in the light of the relevant provisions of this Agreement (to be cited by the parties to the dispute), the matter referred to in the request for establishment of a panel pursuant to Article 7.8 (Request for Establishment of Panels), and to make such findings, rulings and recommendations provided for in this Agreement."
3. The panel shall set out in its report:
(a) a descriptive section summarizing the arguments of the Parties to the dispute;
(b) its findings on the facts of the case and on the applicability of and conformity with the provisions of this Agreement;
(c) its findings on whether the Responding Party has failed to carry out its obligations under this Agreement; and
(d) the reasons for its findings in sub paragraphs (b) and (c).
4. In addition to paragraph 3, a panel may include in its report any other findings, rulings and recommendations pertaining to the dispute, which have been jointly requested by the Parties to the dispute.
5. Unless the Parties to the dispute otherwise agree, a panel shall base its report solely on the relevant provisions of this Agreement and the submissions and arguments of the Parties to the dispute and any information or technical advice it has obtained in accordance with Article 7.13 (Panel Procedures) (Additional Information and Technical Advice). A panel shall only make the findings, rulings and recommendations provided for in this Agreement.
6. The findings, rulings and recommendations of the panel cannot add to or diminish the rights and obligations provided for in this Agreement or any other international agreement.
7. The panel shall consult regularly with the Parties to the dispute and provide adequate opportunities for the development of a mutually satisfactory solution to the dispute.
8. A panel reconvened under this Chapter shall also carry out functions with regard to compliance review under Article 7.16 (Compliance Review) and review of level of suspension of concessions or other obligations under Article 7.17 (Compensation and Suspension of Concession or other Obligations). Paragraphs 1 to 3 shall not apply to a panel reconvened under Article 7.16 (Compliance Review) and Article 7.17 (Compensation and Suspension of Concession or other Obligations).
Article 7.13. PANEL PROCEDURES
1. A panel established pursuant to Article 7.9 (Establishment of Panel) or 7.11 (Re-convening of Panel) shall adhere to this Chapter. The panel shall apply the rules of procedure set out in Annex 15 unless the Parties to the dispute agree otherwise. On the request of a Party to the dispute, or on its own initiative, the panel may, after consulting the Parties to the dispute, adopt additional rules of procedure which do not conflict with the provisions of this Chapter or with Annex 15.
2. A panel re-convened under Article 7.16 (Compliance Review) or Article 7.17 (Compensation and Suspension of Concessions or other Obligations) may establish its own procedures which do not conflict with this Chapter or the Rules of Procedure in Annex 15, in consultation with the Parties to the dispute, drawing as it deems appropriate from this Chapter or the Rules of Procedure in Annex 15.
3. Panel procedures should provide sufficient flexibility so as to ensure high- quality reports, while not unduly delaying the panel process.
Timetable
4. After consulting the Parties to the dispute, a panel shall, as soon as practicable and whenever possible within 15 days after the establishment of the panel, fix the timetable for the panel process. The panel process, from the date of establishment until the date of the final report shall, as a general rule, not exceed the period of nine months, unless the Parties to the dispute agree otherwise.
5. Similarly, a Compliance Review Panel re-convened pursuant to Article 7.16 (Compliance Review) shall, as soon as practicable and whenever possible within 15 days after reconvening, fix the timetable for the compliance review process taking into account the time periods specified in Article 7.16 (Compliance Review).
Panel Proceedings
6. The panel shall make its findings, rulings and recommendations and if requested, suggestions on ways to implement the findings by consensus, provided that where a panel is unable to reach consensus it may make its findings and rulings by majority vote. Panellists may furnish dissenting or separate opinions on matters not unanimously agreed. Opinions expressed by individual members of the panel in its report shall be anonymous.
7. Panel deliberations shall be confidential. The Parties to the dispute shall be present only when invited by the panel to appear before it. A panel shall hold its hearings in closed session unless the Parties to the dispute agree otherwise. All presentations and statements made at hearings shall be made in the presence of the Parties to the dispute. There shall be no ex parte communications with the panel concerning matters under consideration by it.
Submissions
8. Each Party to the dispute shall have the opportunity to set out in writing the facts of its case, its arguments and counter arguments. The timetable fixed by the panel shall include precise deadlines for submissions by the Parties to the dispute.
Hearings
9. The timetable fixed by the panel shall provide for at least one hearing for the Parties to the dispute to present their case to the panel. As a general rule, the timetable shall not provide more than two hearings unless special circumstances exist.
Confidentiality
10. Written submissions to the panel shall be treated as confidential, but shall be made available to the Parties to the dispute. No Party to the dispute shall be precluded from disclosing statements of its own positions to the public provided that there is no disclosure of information which has been designated as confidential by a Party to the dispute. The Parties to the dispute and the panel shall treat as confidential information submitted by a Party to the dispute to the panel which that Party has designated as confidential. A Party to the dispute shall upon request of the other Party, provide a non-confidential summary of the information contained in its written submissions that could be disclosed to the public.
Additional Information and Technical Advice
11. The Parties to the dispute shall respond promptly and fully to any request by a panel for such information as the panel considers necessary and appropriate.
12. A panel may seek information and technical advice from any individual or body which it deems appropriate. However, before doing so the panel shall seek the views of the Parties to the dispute. Where the Parties to the dispute agree that the panel should not seek the additional information or technical advice, the panel shall not proceed to do so. The panel shall, within 15 days upon the request of a Party to the dispute, provide the Parties to the dispute with any information or technical advice it receives and an opportunity to provide comments. Where the panel takes the information or technical advice into account in preparation of its report, it shall also take into account any comments by the Parties to the dispute on that information or technical advice.
Reports of the Panel
13. The panel shall provide to the Parties to the dispute an interim report within 120 days after the date of establishment of the panel. In cases of urgency, including those related to perishable goods, the panel shall endeavour to do so within 90 days after the date of establishment of the panel.
14. In exceptional cases, if the panel considers it cannot issue its interim report within the period of 120 days, or within 90 days in cases of urgency, it shall inform the Parties to the dispute in writing of the reasons for the delay together with an estimate of the period within which it will provide its report to the Parties to the dispute. Any delay shall not exceed a further period of 30 days unless the Parties to the dispute otherwise agree.
15. The panel shall accord adequate opportunity to the Parties to the dispute to review the entirety of its interim report prior to its finalization and shall include a discussion of any comments made by the Parties to the dispute in its final report. A Party to the dispute may submit written comments to the panel on its interim report within 15 days of receiving the interim report or within such other period as the Parties to the dispute may agree. After considering any written comments by the Parties to the dispute on the interim report, the panel may make any further examination it considers appropriate and modify its report.
16. The panel shall present to the Parties to the dispute its final report within 45 days of presentation of the interim report, unless the Parties to the dispute agree otherwise.
17. The interim and final report of the panel shall be drafted without the presence of the Parties to the dispute.
Article 7.14. SUSPENSION AND TERMINATION OF PROCEEDINGS
1. The Parties to the dispute may agree that the panel suspend its work at any time for a period not exceeding 12 months from the date of such agreement. Within this period, the suspended panel proceeding shall be resumed upon the request of any Party to the dispute. In the event of such suspension, all relevant timeframes set out in this Chapter shall be extended by the amount of time that the work was suspended. If the work of the panel has been continuously suspended for more than 12 months, the authority for establishment of the panel shall lapse unless the Parties to the dispute agree otherwise.
2. The Parties to the dispute may agree to terminate the proceedings of a panel in the event that a mutually satisfactory solution to the dispute has been found. In such event, the Parties to the dispute shall jointly notify the chair of the panel.
3. Before the panel presents its final report, it may at any stage of the proceedings propose to the Parties to the dispute that the dispute be settled amicably.
Article 7.15. IMPLEMENTATION OF THE FINAL REPORT
1. The findings, rulings and recommendations of the panel shall be final and binding on the Parties to the dispute. The Responding Party shall:
(a) if the panel makes a ruling that the measure at issue is not in conformity with the obligations of this Agreement, bring the measure into conformity; or
(b) if the panel makes a ruling that the Responding Party has otherwise failed to carry out its obligations under this Agreement, carry out those obligations
2. Within 30 days of the date of the presentation of the panel's final report to the Parties to the dispute, the Responding Party shall notify the Complaining Party:
(a) of its intentions with respect to implementation, including an indication of possible actions it may take to comply with the obligation in paragraph 1;
(b) whether such implementation can take place immediately; and
(c) if such implementation cannot take place immediately, of the reasonable period of time the Responding Party would need to implement the findings and recommendations contained in the final report.
3. If the Responding Party makes a notification under paragraph 2 (c) that it is impracticable for it to comply immediately with the obligation in paragraph 1, it shall have a reasonable period of time to comply with that obligation.
4. If a reasonable period of time is required, it shall, whenever possible, be mutually agreed by the Parties to the dispute. Where the Parties to the dispute are unable to agree on the reasonable period of time within 45 days after the date of the presentation of the panel's final report to the Parties to the dispute, any Party to the dispute may request that the chair of the original panel determine the reasonable period of time, by means of a notice addressed to the chair and the other party to the dispute. Unless the Parties to the dispute otherwise agree, a request to determine the reasonable period of time shall be made no later than 60 days from the date of the presentation of the panel's final report to the Parties to the dispute.
5. Where a request is made pursuant to paragraph 4, the chair of the panel shall present the Parties to the dispute with a report containing a determination of the reasonable period of time and the reasons for such determination within 45 days after the date of receipt by the chair of the panel the request.
6. As a guideline, the reasonable period of time determined by the chair of the panel should not exceed 15 months from the date of the presentation of the panel's final report to the Parties to the dispute. However, such reasonable period of time may be shorter or longer, depending upon the particular circumstances.
Article 7.16. COMPLIANCE REVIEW
1. Where the Parties to the dispute disagree on the existence or consistency with this Agreement of measures taken to comply with the obligation in Article 7.15 (Implementation of the Final Report), such dispute shall be decided through recourse to a panel reconvened for this purpose (Compliance Review Panel). Unless otherwise specified in this Chapter, a Compliance Review Panel may be convened at the request of any Party to the dispute. A copy of all such requests shall be simultaneously provided to the other Party.
2. Such request may only be made after the earlier of either:
(a) the expiry of the reasonable period of time determined in accordance with Article 7.15 (Implementation of the Final Report); or
(b) a notification to the Complaining Party by the Responding Party that it has complied with the obligation in Article 7.15(1) (Implementation of the Final Report).
3. A Compliance Review Panel shall make an objective assessment of the matter before it, including an objective assessment of:
(a) the factual aspects of any implementation action taken by the Responding Party; and
(b) whether the Responding Party has complied with the obligation in Article 7.15(1) (Implementation of the Final Report).
4. The Compliance Review Panel shall set out in its report:
(a) a descriptive section summarizing the arguments of the Parties to the dispute;
(b) its findings on the factual aspects of the case; and
(c) the reason for such findings and ruling on whether the Responding Party has complied with the obligation in Article 7.15(1) (Implementation of the Final Report).
5. A Compliance Review Panel under paragraph 1 shall convene not later than 15 days of the date of the request. The Compliance Review Panel shall, where possible, provide its interim report to the Parties to the dispute within 90 days of the date it convenes, and its final report 15 days thereafter. When the Compliance Review Panel considers that it cannot provide either report within the relevant timeframe, it shall inform the Parties to the dispute in writing of the reasons for the delay together with an estimate of the period within which it will submit the report.
6. The period from the date of the request for the Compliance Review Panel to convene, to the submission of its final report shall not exceed 150 days, unless Article 7.10(5) (Panellists: Qualifications and Competence) applies or the Parties to the dispute otherwise agree.
Article 7.17. COMPENSATION AND SUSPENSION OF CONCESSIONS OR OTHER OBLIGATIONS
1. Compensation and the suspension of concessions or other obligations are temporary measures available in the event that the Responding Party does not comply with the obligation in Article 7.15(1) (Implementation of the Final Report) within the reasonable period of time. However, neither compensation nor the suspension of concessions or other obligations is preferred to compliance with the obligation in Article 7.15(1) (Implementation of the Final Report). Compensation is voluntary and, if granted, shall be consistent with this Agreement.
2. Where either of the following circumstances exists:
(a) the Responding Party has notified the Complaining Party that it does not intend to comply with the obligation in Article 7.15(1) (Implementation of the Final Report); or
(b) the Responding Party fails to provide a notification in accordance with Article 7.15(2) (Implementation of the Final Report); or
(c) a failure to comply with the obligation in Article 7.15(1) (Implementation of the Final Report) has been established in accordance with Article 7.16 (Compliance Review),
the Responding Party shall, if so requested by the Complaining Party, enter into negotiations within 15 days of the date of the request with a view to developing satisfactory compensation.
If no satisfactory compensation has been agreed within 30 days of the date of the request made under paragraph 2, the Complaining Party may at any time thereafter notify the Responding Party that it intends to suspend the application to the Responding Party of concessions or other obligations equivalent to the level of nullification or impairment, and shall have the right to begin suspending concessions or other obligations 30 days after the date of the notification.
3. The right to suspend concessions or other obligations arising under paragraph 3 shall not be exercised where:
(a) a review is being undertaken pursuant to paragraph 8; or
(b) a mutually agreed solution has been reached.
4. A notification made under paragraph 3 shall specify the level of concessions or other obligations that the Complaining Party proposes to suspend, and the relevant Chapter and sector(s) which the concessions or other obligations are related to.
5. In considering what concessions or other obligations to suspend, the Complaining Party shall apply the following principles:
(a) the Complaining Party should first seek to suspend concessions or other obligations in the same sector(s)as that affected by the measure found to be inconsistent with this Agreement; and
(b) the Complaining Party may suspend concessions or other obligations in other sectors if it considers that it is not practicable or effective to suspend concessions or other obligations in the same sector(s).
for the purposes of this Article, "sector" shall mean:
(i) with respect to goods, goods covered under Annexes 1 and 2; and
(ii) with respect to services, services covered in Annexes 13 and 14.
The level of the suspension of concessions or other obligations shall be equivalent to the level of nullification or impairment.
6. Within 30 days from the date of receipt of a notification made under paragraph 3, if the Responding Party objects to the level of suspension proposed or considers that the principles set forth in paragraph 6 have not been followed, or it has complied with the obligation in Article 7.15(1) (Implementation of the Final Report), the Responding Party may request the panel established under Article 7.11 (Reconvening of Panels) to reconvene under this paragraph to make findings in the matter. The Responding Party shall also provide the request in writing to the Complaining Party.
7. The reconvened panel shall provide its assessment to the Parties to the dispute within 60 days of the date it reconvenes. Where a panel is requested to reconvene pursuant to this paragraph, it shall reconvene within 15 days of the date of the request, unless Article 7.10(5) (Panellists: Qualifications & Competence) applies or the Parties to the dispute otherwise agree.
8. In the event the panel determines that the level of suspension is not equivalent to the level of nullification or impairment, it shall determine the level of suspension it considers to be equivalent to the level of nullification or impairment.
9. The suspension of concessions or other obligations shall be temporary and shall only be applied until such time as the obligation in Article 7.15(1) (Implementation of the Final Report) has been complied with or a mutually satisfactory solution is reached.
Article 7.18. EXPENSES
1. Unless the Parties to the dispute otherwise agree, each Party to a dispute shall bear the costs of its appointed panellist and its own expenses and legal costs.
2. Unless the Parties to the dispute otherwise agree, the costs of the chair of the panel and other expenses associated with the conduct of the panel proceedings shall be borne in equal parts by the Parties to the dispute.
Article 7.19. CONTACT POINTS
1. Each Party shall designate a contact point for this Chapter and shall notify the other Party of the details of this contact point within 30 days of the entry into force of this Agreement for that Party. Each Party shall notify the other Party of any change to its contact point.
2. Any written submission or other request, notice, submission or document relating to any proceedings pursuant to this Chapter shall be delivered to the relevant Party through its designated contact point. The relevant Party shall, through its designated contact point, provide confirmation of receipt of such written submission or other request, notice, submission or document in writing, by paper copy, email or other means of electronic transmission.
Article 7.20. LANGUAGE
1. All proceedings pursuant to this Chapter shall be conducted in the English language.
2. Any written submission or other request, notice, submission or document submitted for use in any proceedings pursuant to this Chapter shall be in the English language. If any original document is not in the English language, a Party submitting it for use in the proceedings shall provide an English language translation of that document.
Chapter 8. INSTITUTIONAL AND FINAL PROVISIONS
Article 8.1. ANNEXES
Annexes to this Agreement shall form an integral part thereof.
Article 8.2. AMENDMENTS
1. The Parties may agree, in writing, to any amendment In this Agreement.
2. An amendment agreed under paragraph 1 shall be approved by the Parties in accordance with their own internal legal requirements and procedures.
3. Where an amendment has been approved, a Party shall notify the other Party of such approval, in writing, through diplomatic channels.
4. Where both Parties have notified each other under paragraph 3, an amendment agreed to under paragraph 1 shall enter into force on the first day of the second month following the latter of the two notifications.
Article 8.3. ESTABLISHMENT OF INSTITUTIONS
1. In addition to those institutions established under a specific chapter, a High- Powered Joint Trade Committee is hereby established.
2. Other institutions as may be agreed by the Parties may be established as and when necessary.
Article 8.4. HIGH-POWERED JOINT TRADE COMMITTEE
The High-Powered Joint Trade Committee shall:
a) review the general functioning of this Agreement including improving market access;
b) set up sub-committees and working groups as it considers necessary to assist it in accomplishing its tasks;
c) review, consider and, as appropriate, decide on specific matters related to the operation and implementation of this Agreement, including matters reported by sub-committees or working groups;