7. The Joint Committee shall, in accordance with Article 16.3 consider proposals for any amendments to this Agreement submitted by a Party and recommend to the Parties amendments for adoption.
Article 14.2. Contact Points
For the purpose of facilitating communication between the Parties on any matter covered bythis Agreement, the following contact points are designated:
(a) for China: the MinistryofCommerce (MOFCOM); and
(b) for Switzerland: the State Secretariat for Economic Affairs (SECO).
Chapter 15. Dispute Settlement
Article 15.1. Scope and Coverage
1. Unless otherwise provided in this Agreement, wherever a Party considers that a measure of the other Party is inconsistent with the rights and obligations of this Agreement, the dispute settlement provisions of this Chapter shall apply.
2. Disputes regarding the same matter arising under both this Agreement and the WTO Agreement may be settled in either forum at the discretion of the complaining Party. The forumthus selected shall be used to the exclusion ofthe other.
3. For the purposes of paragraph 2, dispute settlement proceedings under the WTO Agreement are deemed to be initiated 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 proceedings under this Agreement are deemed to be initiated upona request for arbitrationpursuant to paragraph1 of Article 15.4.
Article 15.2. 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 procedures 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 Parties' rights in any other proceedings.
Article 15.3. Consultations
1. A Party may request in writing consultations with the other Party if it considers that a measure is inconsistent with the rights and obligations of this Agreement. The request for consultations shall set out the reasons for the request, including identification of the measure at issue and a brief summary of the legal basis for the complaint. The other Partyshallreplyto the request within ten days after the date of its receipt.
2. Consultations shall commence within 30 days from the date of receipt of the request for consultations. Consultations on urgent matters shall commence within 15 days from the receipt of the request for consultations. If the Party to which the request is made does not reply within ten days or does not enter into consultations within 30 days from the date of receipt of the request for consultations, or within 15 days for urgent matters, the Party making the request is entitled to request the establishment of an arbitration panel in accordance with Article 15.4.
3. The complaining Party shall provide sufficient information to facilitate finding a solution during the consultations. Each Party shall treat any confidential or proprietary information exchanged in the course of consultations in the same manner as the Party providing the information.
4. The consultations shall be confidential and without prejudice to the rights of the Parties in any further proceedings.
Article 15.4. Establishment of Arbitration Panel
1. If the consultations referred to in article 15.3 fail to resolve a matter within 60 days,or 30 days in relation to urgent matters, after the date of the receipt of the request for consultations by the Party complained against, it may be referred to an arbitration panel by means of a written request from the complaining Party to the other Party.
2. The request for arbitration shall identify the specific measure at issue and provide a brief summary of the legal basis of the complaint.
3. The arbitration panel shall comprise three members.
4. Within 15 days after receipt of the request for arbitration in accordance with paragraph 1, both Parties shall designate one member of the arbitration panel respectively.
5. The Parties shall designate by common agreement the third panelist within 30 days after the receipt of the request for arbitration in accordance with paragraph 1. The panelist thus designated shall chair the arbitration panel.
6. If any member of the arbitration panel has not been designated within 30 days after the receipt of the written request for arbitration in accordance with paragraph 1, at the request of any Party to the dispute, the Director-General of the WTO is expected to designate a member within a further 30 days. In the event that the Director-General of the WTO is a national of any Party or unable to perform this task, the Deputy Director-General of the WTO who is not a nationalofanyPartyshall be requested to perform such task. If the Deputy Director-General of the WTO is unable to perform this task as well, the President of the International Court of Justice (ICJ) shall be requested to perform this task. In the event that the President of the ICJ is a national of either Party, the Vice President of the ICJ who is not a national of a Party shall be requested to perform this task.
7. The Chair of the arbitration panel shall not be a national of any of the Parties, nor have his or her usual place of residence in the territory of any of the Parties, nor be employed by any of the Parties, nor have dealt with the matter in any capacity.
8. All panelists shall:
(a) have expertise or experience in law, international trade or the resolution of disputes arising under international trade agreements and, if possible, have expertise in the matter covered by the dispute;
(b) be chosen strictly on the basis of objectivity, reliability, and sound judgment;
(c) be independent and not be affiliated with or take instructions from any Party; and
(d) comply with a code of conduct in conformity with the relevant rules established in the document WT/DSB/RC/1 of the WTO.
9. If a panelist appointed under this Article resigns or becomes unable to act, a successor panelist shall be appointed within 15 days in accordance with the selection procedure as prescribed for the appointment of the original panelist and the successor shall have all the powers and duties of the original panelist. The work of the arbitration panel shall be suspended during the appointment of the successor panelist.
10. Unless the Parties otherwise agree within 30 days from the date of receipt of the request for arbitration in accordance withparagraph1, its terms of reference shall be:
"To examine, in the 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 15.4 and to make findings of law and fact together with the reasons therefor, for the resolution of the dispute."
Article 15.5. Functions of Arbitration Panel
1. The function of an arbitration panel is to make an objective assessment of the dispute before it, in light of the request for its establishment, including an examination of the facts of the case and the applicability of and conformity with this Agreement. It shall interpret the relevant provisions of this Agreement in accordance with customary rules of interpretation of public international law.
2. The arbitration panel, in their findings and recommendations, cannot add to or diminish the rights and obligations provided in this Agreement.
Article 15.6. Procedures of the Arbitration Panel
1. Unless the Parties agree otherwise, the arbitration panel proceedings shall be conducted in accordance with the Rules of Procedure set out inAnnex X.
2. The arbitration panel shall, apart from the rules set out in this Article, regulate its own procedures in relation to the rights of the Parties to be heard and its deliberations in consultation with the Parties.
3. The arbitration panel shall strive to take its decisions by consensus. If it is unable to reach consensus, it may take its decisions by majority vote. Panelists may furnish separate opinions on matters not unanimously agreed. The arbitration panel may not disclose which members are associated with majority or minority opinions.
Article 15.7. Panel Reports
1. The arbitration panel shall draft its reports in line with the relevant provisions of this Chapter and based on the request for its establishment, the relevant provisions of this Agreement, as well as the submissions and arguments of the Parties.
2. The arbitration panel should, as a general rule, submit an initial report containing its findings and conclusions to the Parties no later than 90 days after the last panelist is selected. In urgent matters the arbitration panel should submit the initial report no later than 60 days from the date the last panelist is selected. Each Party may submit written comments to the arbitration panel on its initial report within14 days of receipt of the report.
3. In exceptional cases,if the arbitration panel considers it cannot release its initial report within 90 days, it shall inform the Parties in writing of the reasons for the delay together with an estimate of the period within which it will release its report. Any delay shall not exceed a further period of30 days unless the Parties otherwise agree.
4. The arbitration panel shall present to the Parties a final report within 30 days, or 20 days in relation to urgent matters, after the submission of the initial report.
5. The final report, as well as any report under Articles 15.9 and 15.10, shall be communicated to the Parties. The reports shall be available to the public, unless the Parties decide otherwise, subject to the protection of confidential information.
6. The ruling of the arbitration panel on the consistency of the measure specified in the terms of reference with this Agreement (hereinafter referred to as "the ruling") shall be final and binding upon the Parties.
Article 15.8. Suspension or Termination of Arbitration Panel Proceedings
1. Where the Parties agree, an arbitration panel may suspend its work at any time for a period not exceeding 12 months from the date of such agreement. If the work of an arbitration panel has been suspended for more than 12 months, the terms of reference for establishment of the arbitration panel shall lapse unless the Parties agree otherwise.
2. A complaining Party may withdraw its complaint at any time before the final report has been issued. Such withdrawal is without prejudice to its right to introduce a new complaint regarding the same issue at a later point in time. The right of the complaining Party to withdraw its complaint and introduce a new complaint shall not be abused.
3. The Partiesmayagree at any time before the release of the final report to terminate the proceedings of an arbitration panel established under this Agreement by jointly notifying the Chairpersonofthat arbitration panel.
4. An arbitration panel may, at any stage of the proceedings prior to release of the final report, propose that the Parties seek to settle the dispute amicably.
Article 15.9. Implementation of Final 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 shall endeavour to agree on a reasonable period of time to do so.
2. In the absence of an agreement referred to inparagraph1 within45 days from the date of the issuance of the final report, either Party may request the 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 30 days from the receipt of that request.
3. The Party complained against shall, promptly or within the reasonable period of time as agreed or determined pursuant to paragraphs 1 and 2, notify the other 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 other Party to assess the measure.
4. In case of disagreement as to the existence or consistency of a measure taken to comply with the ruling in the final report in accordance with paragraphs 1 and 2, such disagreement shall be decided by the same arbitration panel upon the request of either Party before compensation can be sought or suspension of benefits can be applied in accordance with Article 15.10. The ruling of the arbitration panel shall normally be rendered within 60 days.
5. When the arbitration panel considers that it cannot provide its report within the timeframe referred to in paragraph 2 and 4, it shall inform the Parties in writing of the reasons for the delay together with an estimate of the period within which it will submit its report. Any delay shall not exceed a further period of 15 days.
Article 15.10. Compensation, Suspension of Concessions and Obligations
1. If the arbitration panel has found in accordance with paragraph 4 of Article 15.9 that the Party complained against failed to bring the measure found to be inconsistent with this Agreement into compliance with the ruling of the arbitration panel within the reasonable period of time established, or if the Party complained against notifies the complaining Party that it will not implement the ruling, that Party shall, if so requested by the complaining Party, enter into consultations with a view to agreeing on a 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. The complaining Party shall notify the Party complained against 30 days before suspending concessions and obligations.
2. In considering what concessions and obligations to suspend, the complaining Party shall first seek to suspend concessions and obligations in the same sector or sectors as that affected by the measure that the arbitration panel has found to be inconsistent with this Agreement. If the complaining Party considers it is not practicable or effective to suspend concessions and obligations in the same sector or sectors, it may suspend concessions and obligations in other sectors. In such a case, the complaining Party shall include in its notification announcing the suspension of concessions or obligations the reasons for its decision.
3. In its notification announcing the suspension of concessions or obligations, the complaining Party shall indicate the concessions or obligations which it intends to suspend, the grounds for such suspension and when suspension will commence. Within 15 days from the receipt of that notification, the Party complained against may request the arbitration panel to rule on whether the concessions or obligations 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 shall be given within 60 days from the receipt of that request. Concessions or obligations 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 have resolved the dispute otherwise. To this end, if the Party complained against considers that it has eliminated the nonconformity that the arbitration panel has found, it may provide written notice to the complaining Party with a description of how non-conformity has been removed.
Article 15.11. Other Provisions
1. Whenever possible, the arbitration panel referred to in Articles 15.9 and 15.10 shall comprise the same panelists who issued the final report. If a member of the arbitration panel is unavailable, the appointment of a replacement panelist shall be conducted in accordance with the selection procedure for the original panelist.
2. For the purposes of calculating time periods, such period shall begin to run on the day following the day when a written communication is received. If the last day of such period is an official holiday, the period shall be extended until the first work day which follows. Official holidays or nonwork days occurring during the running of the period of time shall be included in calculating the period.
3. Any time period mentioned in this Chapter may be modified by mutual agreement of the Parties.
Chapter 16. Final Provisions
Article 16.1. Fulfilment of Obligations
The Parties shall take any general or specific measures required to fulfil their obligations under this Agreement.
Article 16.2. Annexes and Appendices
The Annexes to this Agreement, including their Appendices, constitute an integral part of this Agreement.
Article 16.3. Amendments
1. Each Party may submit proposals for amendments to this Agreement to the Joint Committee for consideration and approval.
2. Amendments to this Agreement shall, after approval by the Joint Committee, be submitted to the Parties for ratification, acceptance or approval in accordance with their respective legal requirements.
3. Unless otherwise agreed by the Parties, amendments shall enter into force on the first day of the third month following the date of notification of the latter Party that the respective legal requirements have been fulfilled.
Article 16.4. Termination
Each Party may terminate this Agreement by notification through diplomatic channel to the other Party. This Agreement shall expire six months after the date of such notification.
Article 16.5. Entry Into Force
This Agreement shall enter into force on the first day of the third month following the month in which the Governments of the Parties exchange diplomatic notes informing each other that their respective legal procedures necessary for the entry into force of this Agreement have been completed.
Conclusion
IN WITNESS WHEREOF, the undersigned, being duly authorised by their respective Governments, have signed this Agreement.
Done at Beijing, this 6th day of July 2013, in two originals each in the English, Chinese and French language, each text being equally authentic. In case of divergence between the language versions, the English text shall prevail.
For the People's Republic of China
For the Swiss Confederation