Article 15. Compliance Review
1. The Party complained against shall, no later than the date of expiry of the reasonable period of time, deliver a notification to the complaining Party of any measure that it has taken to comply with the final report.
2. Where there is disagreement as to the existence or consistency with the covered provisions of measures taken to comply with the final report, the complaining party may deliver a written request to the original arbitration panel to decide on the matter.
3. The arbitration panel shall deliver its report to the Parties within 50 days after the date of receipt of the request.
4. Articles 6, 7, 10, 11, 12.5, 12.6 and 12.7 shall apply, mutatis mutandis, to the procedure under this Article.
Article 16. Temporary Remedies
1. The Party complained against shall, on request by the complaining Party, enter into negotiations with the complaining Party, with a view to agreeing on a mutually acceptable compensation, if:
(a) the Party complained against delivers a notification to the complaining Party that it is not possible to comply with the final report; or
(b) the Party complained against fails to deliver a notification within the time-limit referred to in Article 13(2) or before the expiry of the reasonable period of time defined in accordance with Article 14; or
(c) the arbitration panel referred to in Article 15 finds that no measure taken to comply exists or that the measure taken to comply is inconsistent with the covered provisions.
2. If the Parties fail to reach an agreement on compensation within 30 days after the expiry of the reasonable period of time or the delivery of the panel report referred to in Article 15(3), or if the complaining Party does not make a request pursuant to paragraph 1, the complaining Party may deliver a written notification to the Party complained against that it intends to suspend the application of concessions or other obligations (hereinafter referred to as "obligations") under the covered provisions. The notification shall specify the level and scope of the intended suspension of obligations.
3. The complaining Party may suspend the obligations 10 days after the date of delivery of the notification referred to in paragraph 2, unless the Party complained against made a request pursuant to paragraph 5.
4. The level of the suspension of obligations shall not exceed the level of the nullification or impairment caused by the violation. In considering what obligations to suspend:
(a) the complaining Party should first seek to suspend obligations in the same sector(s) as that affected by the measure that the arbitration panel has found to be inconsistent with the obligations under this Treaty; and
(b) if the complaining Party considers that it is not practicable or effective in inducing compliance to suspend obligations in the same sector(s), it may suspend obligations in other sectors.
5. If the Party complained against considers that the notified level of suspension of obligations exceeds the level equivalent to the nullification or impairment caused by the violation, it may deliver a written request to the original arbitration panel before the expiry of the 10 day period referred to in paragraph 3 to decide on the matter. If the arbitration panel cannot be established with its original members, it shall be composed in accordance with the procedures set out in Article 7. The arbitration panel shall deliver its decision to the Parties within 50 days from the date of the request, or if an arbitration panel cannot be established with its original members, from the date on which the last panellist is appointed. Obligations shall not be suspended until the arbitration panel has delivered its decision. The suspension of obligations shall be consistent with this decision.
6. The suspension of obligations or the compensation referred to in this Article shall be temporary and shall not be applied after:
(a) the Parties have reached a mutually agreed solution pursuant to Article 5;
(b) the Parties have agreed that the measure taken to comply brings the Party complained against into conformity with the covered provisions; or
(c) any measure taken to comply which the arbitration panel has found to be inconsistent with the covered provisions has been withdrawn or amended so as to bring the Party complained against into conformity with those provisions. (2)
Article 17. Review of Any Measure Taken to Comply after the Adoption of Temporary Remedies
1. The Party complained against shall deliver a notification to the complaining Party of any measure it has taken to comply following the suspension of obligations or following the application of temporary compensation, as the case may be, together with a description of how the non-conformity has been removed.
2. If the complaining Party agrees that the notified measure brings the Party complained against into conformity with the covered provisions, it shall terminate the suspension of obligations promptly, and no later than 30 days after the delivery of the notification. In cases where compensation has been applied, the Party complained against is allowed to terminate the application of such compensation.
3. If the Parties do not reach an agreement on whether the notified measure brings the Party complained against into conformity with the covered provisions within 30 days from the date of the delivery of the notification pursuant to paragraph 1, the complaining Party shall refer the matter to the original arbitration panel to decide on the matter.
4. The arbitration panel shall deliver its report within 50 days after the referral of the matter by the complaining Party pursuant to paragraph 3. If the arbitration panel concludes that the measure taken to comply is in conformity with the covered provisions, the complaining Party shall promptly, and no later than 30 days after the delivery of the report, terminate the suspension of obligations and the party complained against is allowed to terminate any compensation. In case of partial compliance, the complaining Party shall adjust the level of suspension of obligations and the Party complained against may adjust the level of compensation in light of the arbitration panel report. The relevant procedures set out in Articles 16 and 17 apply mutatis mutandis.
Article 18. Rules of Procedure
Arbitration panel procedures shall be governed by this Section and the Annex on Rules of Procedure.
Article 19. Transparency
1. Transparency of submissions and statements in the proceedings is governed by rule 38 in the Annex on Rules of Procedure.
2. Any hearing of the panel shall be open to the public unless otherwise provided in the Annex on Rules of Procedure, and subject to the conditions set out therein.
3. Natural or legal persons established in a Party may submit amicus curiae briefs to the panel in accordance with the Annex on Rules of Procedure.
Article 20. Information and Technical Advice
1. On request of a Party, or at its own initiative, the arbitration panel may seek any information and technical advice it deems appropriate from any source, including from the Parties.
2. The arbitration panel also has the right to seek the opinion of experts, as it deems appropriate. The arbitration panel shall consult the Parties before choosing such experts.
3. Any information and technical advice obtained by the arbitration panel under this Article shall be disclosed to the Parties and the Parties may provide comments on that information.
Article 21. Choice of Forum
1. When a dispute arises regarding a particular measure in alleged breach of an obligation under this Agreement and a substantially equivalent obligation under another international agreement to which both Parties are party, including the WTO Agreement, the Party seeking redress shall select the forum in which to settle the dispute.
2. Once a Party has selected the forum, the forum selected shall be used to the exclusion of other fora, unless that forum fails to make findings for procedural or jurisdictional reasons.
3. For the purposes of this Article, a forum is deemed to be selected:
(a) for dispute settlement procedures under this Section by a Party's request for the establishment of an arbitration panel in accordance with Article 6;
(b) for dispute settlement procedures under the WTO Agreement by a Partyâs request for the establishment of a panel under Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes of the WTO;
(c) for dispute settlement procedures under any other agreement in accordance with the relevant provisions of that agreement.
4. Nothing in this Agreement shall preclude a Party from suspending obligations authorised by the Dispute Settlement Body of the WTO or under the dispute settlement procedures of another international agreement to which the disputing Parties are party. The WTO Agreement or any other international agreement between the Parties shall not be invoked to preclude a Party from suspending obligations set outin the covered provisions pursuant to this Section.
Article 22. Time Periods
1. All time periods laid down in this Section shall be counted in calendar days from the day following the act to which they refer, unless otherwise specified.
2. Any time period referred to in this Section may be modified by mutual agreement of the Parties.
3. The arbitration panel may at any time propose to the Parties to modify any time period referred to in this Section, stating the reasons for the proposal.
4. Incase of urgency, the arbitration panel may, at the request of a Party, reduce the time periods referred to in this Section.
Article 23. Annexes
The [institutional body to be defined] may modify the Annexes X (Rules of Procedure) and XX (Code of Conduct for Panellists and Mediators).
Annex I. Rules of Procedure for State-to-State Dispute Settlement
I. Definitions
1. In Section [X] (State-to-State Dispute Settlement) and under these Rules of Procedure:
(a) "arbitration panel" means a panel established pursuant to Article 6 (Establishment of an Arbitration Panel) of Section [X] (State-to-State Dispute Settlement);
(b) "assistant" means an individual who, under the terms of appointment and under the direction and control of a panellist, conducts research or provides assistance to that panellist;
(c) "complaining Party" means any Party that requests the establishment of panel pursuant to Article 6 (Establishment of an Arbitration Panel) of Section [X] (State-to-State Dispute Settlement);
(d) "day" means a calendar day;
(e) "panellist" means a member of an arbitration panel;
(f) "Party complained against" means the Party that is alleged to be in violation of the covered provisions referred to in Article 2 (Scope of Application) of Section [X] (State-to-State Dispute Settlement);
(g) "representative of a Party" means an employee or an individual appointed by a Party who represents, advises or assists the Party for the purposes of a dispute under this Agreement.
II. Notifications
2. Any request, notice, written submission or other document, as applicable, of:
(a) the arbitration panel shall be sent to both Parties at the same time;
(b) a Party which is addressed to the arbitration panel shall be copied to the other Party at the same time; and
(c) a Party which is addressed to the other Party shall be copied to the arbitration panel at the same time.
3. Any notification referred to in rule 2 shall be made by e-mail or, where appropriate, any other means of telecommunication that provides a record of the sending thereof. Unless proven otherwise, such notification shall be deemed to be delivered on the date of its sending.
4. All notifications shall be addressed to [...] of China and to the Directorate-General for Trade of the Commission of the European Union, respectively.
5. Minor errors of a clerical nature in a request, notice, written submission or other document related to the arbitration panel proceedings may be corrected by the delivery of a new document clearly indicating the changes.
6. If the last day for delivery of a document falls on a non-working day of the institutions of the European Union or of the government of China, the time period for the delivery of the document shall end on the first following working day.
III. Appointment of Panellists
7. If pursuant to Article 7 (Composition of an Arbitration Panel) of Section [X] (State- to-State Dispute Settlement), a panellist is selected by lot, the complaining Party shall promptly inform the Party complained against of the date, time and venue of the lot. The Party complained against may, if it so chooses, be present during the lot. The lot shall be carried out with the Party or Parties that are present.
8. The complaining Party shall notify, in writing, each individual who has been selected to serve as a panellist of his or her appointment. Each individual shall confirm his or her availability to both Parties no later than five days after the date of notification of the appointment.
9. For the purposes of Article 7(6) (Composition of an Arbitration Panel), the complaining Party shall select by lot the panellists or the chairperson:
(a) from the individuals who have been formally proposed by a Party for its particular sub-list, if that sub-list is not established;
(b) from the individuals who have been formally proposed by one or both Parties for the sub-list of chairpersons, if that sub-list is not established;
(c) from the individuals that remain on that particular sub-list, if a sub-list no longer contains at least four individuals.
IV. Organisational Meeting
10. Unless the Parties agree otherwise, they shall meet the arbitration panel within seven days of its composition in order to determine such matters as the Parties or the arbitration panel deem appropriate, including the timetable of the proceedings. Panellists and representatives of the Parties may take part in this meeting.
V. Written Submissions
11. The complaining Party shall deliver its written submission no later than 20 days after the date of the composition of the arbitration panel. The Party complained against shall deliver its written submission no later than 30 days after the date of delivery of the written submission of the complaining Party.
VI. Operation of the Arbitration Panel
12. The chairperson of the arbitration panel shall preside at all its meetings. The arbitration panel may delegate to the chairperson the authority to make administrative and procedural decisions.
13. Unless otherwise provided in Section [X] (State-to-State Dispute Settlement) or in these Rules of Procedure, the arbitration panel may conduct its activities by any means.
14. Only panellists may take part in the deliberations of the arbitration panel, but the arbitration panel may permit assistants to be present at its deliberations.
15. The drafting of any decision and report shall remain the exclusive responsibility of the arbitration panel and shall not be delegated.
16. Where a procedural question arises that is not covered by Section [X] (State-to-State Dispute Settlement) and its Annexes, the arbitration panel, after consulting the Parties, may adopt an appropriate procedure that is compatible with those provisions.
17. If the arbitration panel considers that there is a need to modify any of the time periods for the proceedings other than the time periods set out in Section [X] (State- to-State Dispute Settlement) or to make any other procedural or administrative adjustment, it shall inform the Parties in writing of the reasons for the change or adjustment and of the time period or adjustment needed.
VII. Replacement
18. If a panellist is unable to participate in the proceedings, withdraws, or must be replaced, a replacement shall be selected in accordance with Article 7 (Composition of an Arbitration Panel) of Section [X] (State-to-State Dispute Settlement).
19. If a Party considers that a panellist does not comply with the requirements of Annex XX (Code of Conduct for Panellists and Mediators) and for this reason should be replaced, that Party shall notify the other Party within 15 days of the date on which it obtained sufficient evidence of the panellist's alleged non-compliance.
20. The Parties shall consult within 15 days. They shall inform the panellist of its alleged non-compliance and may request the panellist to take steps to remedy the non-compliance. They may also, if they so agree, remove the panellist and select a new panellist in accordance with Article 7 (Composition of an Arbitration Panel) of Section [X] (State-to-State Dispute Settlement).
21. If the Parties fail to agree on the need to replace a panellist other than the chairperson of the arbitration panel, either Party may request that this matter be referred to the chairperson of the arbitration panel, whose decision shall be final.
If the chairperson of the panel finds that the panellist does not comply with the requirements of Annex XX (Code of Conduct for Panellists and Mediators), the new panellist shall be selected in accordance with Article 7 (Composition of an Arbitration Panel) of Section [X] (State-to-State Dispute Settlement).
22. If the Parties fail to agree on the need to replace the chairperson, either Party may request that this matter be referred to the two remaining panellists. The decision by the panellists on the need to replace the chairperson shall be final.
If the panellists finds that the chairperson does not comply with the requirements of Annex XX (Code of Conduct for Panellists and Mediators), the new chairperson shall be selected in accordance with Article 7 (Composition of an Arbitration Panel) of Section [X] (State-to-State Dispute Settlement).
23. The arbitration panel proceedings shall be suspended for the period taken to carry out the procedures provided for in rules 18 to 22.
VIII. Hearings
24. Based upon the timetable determined pursuant to rule 10, after consulting with the Parties and the other panellists, the chairperson of the arbitration panel shall notify the Parties of the date, time and venue of the hearing. This information shall be made publicly available by the Party in which the hearing takes place, unless the hearing is closed to the public. Unless a Party disagrees, the arbitration panel may decide not to convene a hearing.
25. The hearing shall be open to the public, unless the Parties decide that the hearing shall be partially or completely closed to the public. If the hearing is open to the public, the following conditions apply, unless the Parties agree otherwise:
(a) public viewing shall take place via simultaneous or delayed closed circuit television broadcasting in a separate viewing room at the venue of the hearing;
(b) registration for public viewing of the hearing shall be required and the arbitration panel may decide on further logistical arrangements, in particular by limiting the number of places and allocating them on a first-come first-served basis; and
(c) no audio or video recording, photography, or web-streaming shall be permitted in the viewing room.
26. Unless the Parties agree otherwise, the hearing shall be held in Brussels if the complaining Party is China and in Beijing if the complaining Party is the European Union. The Party complained against shall be in charge of the logistical administration of the hearing and bear the expenses derived therefrom.
27. The arbitration panel may convene additional hearings if the Parties so agree.
28. All panellists shall be present during the entirety of the hearing.
29. Unless the Parties agree otherwise, the following persons may attend the hearing, irrespective of whether the hearing is open to the public or not:
(a) representatives of a Party; and
(b) assistants, interpreters, if necessary, and other persons whose presence is requested by the arbitration panel.
30. No later than five days before the date of a hearing, each Party shall deliver to the arbitration panel and to the other Party a list of the names of persons who will make oral arguments or presentations at the hearing on behalf of that Party and of other representatives who will be attending the hearing.
31. In conducting the hearing, the arbitration panel shall ensure that the complaining Party and the Party complained against are afforded sufficient time to present their arguments.
32. The arbitration panel may direct questions to either Party at any time during the hearing.
33. The arbitration panel shall arrange for the audio-recording of the hearing to be prepared and delivered to the Parties as soon as possible after the hearing.
34. Each Party may deliver a supplementary written submission concerning any matter that arose during the hearing no later than 20 days after the date of the hearing.
IX. Questions in Writing
35. The arbitration panel may at any time during the proceedings submit questions in writing to one or both Parties. Any questions submitted to one Party shall be copied to the other Party.
36. Each Party shall provide the other Party with a copy of its responses to the questions submitted by the arbitration panel. Each Party shall have an opportunity to provide comments in writing on the other Partyâs responses no later than five days after the delivery of such copy.
X. Transparency
37. A party making a request for consultations or a request for the establishment of an arbitration panel shall make that request publicly available without delay, subject to the protection of confidential information.
38. Each Party may make its submissions or statements to the arbitration panel publicly available, subject to the protection of confidential information.
XI. Confidentiality
39. Any information submitted by the other Party to the arbitration panel, which that other Party has designated as confidential shall be treated as confidential. Where a Party submits to the arbitration panel a written document which contains confidential information, it shall also, upon request of the other Party, provide, no later than 15 days after the submission, a non-confidential summary of the information contained in the submission that could be disclosed to the public.
40. Notwithstanding rule 25, the arbitration panel shall meet in closed session when the submission and arguments of a Party contain confidential information. The Parties shall maintain the confidentiality of the hearings where the hearings are held in closed session.
XII. Ex parte contacts
41. The arbitration panel shall not meet or communicate with a Party in the absence of the other Party.
42. A panellist shall not discuss any aspect of the subject matter of the proceedings with one Party or both Parties in the absence of the other panellists.
XIII. Amicus curiae submissions
43. Unless the Parties agree otherwise within five days of the date of the establishment of the panel, natural persons of a Party or legal persons established in the territory of a Party, who are independent from the governments of the Parties, may deliver unsolicited written submissions to the arbitration panel, provided that they:
(a) are received by the panel within 10 days after the panel was composed;
(b) are concise and in no case longer than 20 pages, including any annexes typed at double space;
(c) are directly relevant to a factual or a legal issue under consideration by the arbitration panel;
(d) contain a description of the person making the submission, including for a natural person his or her nationality and for a legal person its place of establishment, the nature of its activities, its legal status, general objectives, the source of its financing, and any controlling entity;
(e) disclose any connection with a Party;
(f) specify the nature of the interest that the person has in the arbitration proceedings; and
(g) are drafted in the languages chosen by the Parties in accordance with rules 48 and 49 of these Rules of Procedure.
44. The submissions shall be delivered to the Parties for their comments. Within 10 days of the delivery of the submissions the Parties may submit comments to the arbitration panel.
45. The arbitration panel shall annex to its report a list of all the persons having made an amicus curiae submissions that complied with rule 43. The arbitration panel shall not be obliged to address in its report the arguments made in such submissions.
46. The arbitration panel shall ensure that the amicus curiae submissions do not disrupt the proceedings or unduly burden or unfairly prejudice either Party.
XIV. Urgent cases
47. In cases of urgency as referred to in paragraph 4 of Article 22 (Time Periods) of Section [X] (State-to-State Dispute Settlement), the arbitration panel, after consulting the Parties, shall adjust, as appropriate, the time periods referred to in these Rules of Procedure. The arbitration panel shall notify the Parties of those adjustments.
XV. Working Language, Translation and Interpretation
48. During the consultations referred to in Article 3 of Section [X] (State-to-State Dispute Settlement), and no later than the organisational meeting referred to in rule 10 of these Rules of Procedure, the Parties shall endeavour to agree on a common working language for the proceedings before the arbitration panel.
49. If the Parties are unable to agree on a common working language, the arbitration panel shall, after consulting the Parties, decide on the most appropriate working language, taking into account the languages both Parties are familiar with.
50. Panel reports and decisions shall be issued in the working language.
51. Any Party may provide comments on the accuracy of the translation of any translated version of a document drawn up in accordance with these Rules of Procedure.
52. Each Party shall bear the costs of the translation of its written submissions and interpretation of oral submissions into the working language, if any.
XVI. Costs
53. Each Party shall bear its own expenses derived from the participation in the arbitration panel or the mediation.
54. The Parties shall share jointly and equally the expenses derived from organisational matters, including the remuneration and expenses of the panellists and the mediator.
55. The remuneration and expenses to be paid to the panellists shall be in accordance with WTO standards. The total amount of the remuneration of an assistant or assistants of each panellist, if any, shall not exceed 50% of the remuneration of that panellist.