Before a request for consultations or good offices, conciliation, or mediation is made pursuant to Article 14.6 (Consultations) or Article 14.7 (Good Offices, Conciliation and Mediation), respectively, a Party may request in writing any relevant information with respect to a measure at issue. The Party to which that request is made shall make all efforts to provide the requested information in a written response to be submitted no later than 20 days after the date of receipt of the request.
Article 14.6. Consultations
1. The Parties shall endeavour to resolve any dispute referred to in Article 14.3 (Scope of Application) by entering into consultations in good faith with the aim of reaching a mutually agreed solution.
2. A Party shall seek consultations by means of a written request delivered to the other Party identifying the reasons for the request, including the measure at issue and a description of the request's factual and legal basis, specifying the covered provisions that it considers applicable.
3. The Party to which the request for consultations is made shall reply to the request promptly, but no later than 10 days after the date of receipt of the request. Consultations shall be held within 30 days of the date of receipt of the request. The consultations shall be deemed to be concluded within 30 days of the date of receipt of the request, unless the Parties agree otherwise.
4. Consultations on matters of urgency, including those which concern perishable goods, shall be held within 15 days of the date of receipt of the request. The consultations shall be deemed to be concluded within those 15 days unless the Parties agree otherwise.
5. During consultations, each Party shall provide sufficient information so as to allow a complete examination of the measure at issue, including how that measure is affecting the operation and application of this Agreement.
6. Consultations, including all information disclosed and positions taken by the Parties during consultations, shall be confidential and without prejudice to the rights of either Party in any further proceedings.
7. Consultations may be held in person or by any other means of communication agreed between the Parties. Unless the Parties agree otherwise, consultations, if held in person, shall take place in the territory of the Party to which the request is made.
8. If the Party to which the request is made does not respond to the request for consultations within 10 days from the date of its receipt, or if consultations are not held within the timeframes laid down in paragraph 3 or in paragraph 4, respectively, or if the Parties agree not to have consultations, or if consultations have been concluded and no mutually agreed solution has been reached, the Party that sought consultations may have recourse to Article 14.8 (Establishment of a Panel).
Article 14.7. Good Offices, Conciliation and Mediation
1. The Parties may at any time agree to enter into procedures for good offices, conciliation, or mediation. They may begin at any time and be terminated by either Party at any time.
2. Proceedings involving good offices, conciliation, or mediation, and the particular positions taken by the Parties in these proceedings, shall be confidential and without prejudice to the rights of either Party in any further proceedings under this Chapter or any other proceedings before a forum selected by the Parties.
3. If the Parties agree, procedures for good offices, conciliation, or mediation may continue during the panel procedures set out in the Articles that follow.
Article 14.8. Establishment of a Panel
1. The complaining Party may request the establishment of a panel if:
(a) the respondent Party does not reply to the request for consultations in accordance with the time frames referred to in Article 14.6 (Consultations); or
(b) the consultations referred to in Article 14.6 (Consultations) of this Agreement are not held or fail to settle a dispute within 30 days, or 15 days in relation to urgent matters, including those which concern perishable goods, after the date of receipt of the request for consultations by the respondent Party.
2. The request for the establishment of a panel shall be made by means of a written request delivered to the other Party and shall identify the measure at issue and indicate the factual and legal basis of the complaint, specifying the relevant covered provisions in a manner sufficient to present how such measure is inconsistent with those provisions.
3. When a request is made by the complaining Party in accordance with paragraph 1, a panel shall be established.
Article 14.9. Composition of a Panel
1. Unless the Parties agree otherwise, a panel shall consist of three panellists.
2. Within 20 days from the establishment of the panel, each Party shall appoint a panellist. The Parties shall, by mutual agreement, appoint the third panellist, who shall serve as the chairperson of the panel, within 40 days from the establishment of the panel.
3. If either Party fails to appoint a panellist within the time period established in paragraph 2, the other Party may request that the Secretary-General of the Permanent Court of Arbitration designate the unappointed panellist within 20 days of that request.
4. If the Parties do not agree on the chairperson of the panel within the time period established in paragraph 2, they shall, within the next 10 days, exchange their respective lists comprising three nominees who shall not be nationals of either Party. The chairperson shall then be appointed by draw of lot from the lists within 10 days after the expiry of the time period during which the Parties shall exchange their respective lists of nominees. The selection by lot of the chairperson of the panel shall be made by the Joint Committee.
5. If a Party fails to submit its list of three nominees within the time period established in paragraph 4, the chairperson shall be appointed by draw of lot from the list submitted by the other Party.
6. The date of composition of the panel shall be the date on which the last of the three selected panellists has notified the Parties that he or she has accepted the appointment.
Article 14.10. Decision on Urgency
If a Party so requests, the panel shall decide, within 15 days of its composition, whether the dispute concerns a matter of urgency.
Article 14.11. Requirements for Panellists
1. Each panellist shall:
(a) have demonstrated expertise in law, international trade, and other matters covered by this Agreement;
(b) be independent of, and not be affiliated with or take instructions from, either Party;
(c) serve in their individual capacities and not take instructions from any organisation or government with regard to matters related to the dispute;
(d) comply with the Code of Conduct for Panellists established in Annex 14-2; and
(e) be chosen strictly on the basis of their objectivity, reliability, and sound judgment.
2. The chairperson shall also have experience in dispute settlement procedures.
3. Persons who provided good offices, conciliation, or mediation to the Parties, pursuant to Article 14.7 (Good Offices, Conciliation, and Mediation) in relation to the same or a substantially equivalent matter, shall not be eligible to be appointed as panellists in that matter.
Article 14.12. Replacement of Panellists
If any of the panellists of the original panel becomes unable to act, withdraws, or needs to be replaced because that panellist does not comply with the requirements of the Code of Conduct for Panellists, a successor panellist shall be appointed in the same manner as prescribed for the appointment of the original panellist, and the successor panellist shall have all the powers and duties of the original panellist. The work of the panel shall be suspended during the appointment of the successor panellist.
Article 14.13. Functions of the Panel
Unless the Parties otherwise agree, the Panel:
(a) shall make an objective assessment of the matter before it, including an objective assessment of the facts of the case and the applicability and conformity of the measure at issue with the covered provisions;
(b) shall set out, in its decisions and reports, its findings of fact and law and the rationale behind any findings and conclusions that it makes; and
(c) should consult regularly with the Parties and provide adequate opportunities for the development of a mutually agreed solution.
Article 14.14. Terms of Reference
1. Unless the Parties otherwise agree within 15 days after the date of establishment of the panel, the terms of reference of the panel shall be:
"to examine, in the light of the relevant covered provisions of this Agreement cited by the Parties, the matter referred to in the request for the establishment of the panel, to make findings on the conformity of the measure at issue with the relevant covered provisions of this Agreement as well as recommendations, if any, on the means to resolve the dispute, and to deliver a report in accordance with Articles 14.18 (Interim Report) and 14.19 (Final Report)".
2. If the Parties agree on terms of reference other than those referred to in paragraph 1, they shall notify the agreed terms of reference to the panel no later than 5 days after their agreement.
Article 14.15. Rules of Interpretation
1. The panel shall interpret the covered provisions in accordance with customary rules of interpretation of public international law.
2. When appropriate, the panel may also take into account relevant interpretations in reports of prior panels established under this Chapter and reports of panels and the Appellate Body adopted by the Dispute Settlement Body of the WTO.
Article 14.16. Procedures of the Panel
1. Unless the Parties otherwise agree, the panel shall follow the Rules of Procedure set out in Annex 14-1.
2. The panel may, after consulting with the Parties, adopt additional rules of procedure consistent with the Rules of Procedure set out in Annex 14-1.
3. There shall be no ex parte communications with the panel concerning matters under its consideration.
4. The deliberations of the panel and the documents submitted to it shall be kept confidential.
5. A Party asserting that a measure of the other Party is inconsistent with the provisions of this Agreement shall have the burden of establishing such inconsistency. A Party asserting that a measure is subject to an exception under this Agreement shall have the burden of establishing that such exception applies.
6. The panel should consult with the Parties as appropriate and provide adequate opportunities for the development of a mutually agreed solution.
7. The panel shall make its decisions, including those in its reports, by consensus, but if consensus is not possible then by a majority of its members. Panellists may write separate opinions on matters not unanimously agreed, but dissenting opinions of panellists shall in no case be disclosed.
Article 14.17. Receipt of Information
1. On request of a Party, or on its own initiative, the panel may seek from the Parties relevant information it considers necessary and appropriate. The Parties shall respond promptly and fully to any request by the panel for information.
2. On request of a Party or on its own initiative, the panel may seek from any source any information it considers appropriate. Where applicable, the panel also has the right to seek the opinion of experts as it considers appropriate.
3. On request of a Party, or on its own initiative, the panel may seek information and technical advice from any individual or body that it considers appropriate, provided that the Parties agree on the terms and conditions.
4. Any information obtained by the panel under this Article shall be made available to the Parties, and the Parties may provide comments on that information.
Article 14.18. Interim Report
1. The panel shall deliver an interim report to the Parties within 90 days from the date of composition of the panel. When the panel considers that this deadline cannot be met, the chairperson of the panel shall notify the Parties in writing, stating the reasons for the delay and the date on which the panel plans to deliver its interim report. Under no circumstances shall the delay exceed 30 days from the initial 90-day deadline.
2. The interim report shall set out a descriptive part and the panel's findings and conclusions.
3. Each Party may submit to the panel written comments and a written request to review precise aspects of the interim report within 15 days of the date of issuance of the interim report. A Party may comment on the other Party's request within 6 days of the delivery of the other Party's request for review.
4. After considering any written comments and requests by each Party on the interim report, the panel may modify the interim report and make any further examination it considers appropriate.
Article 14.19. Final Report
1. The panel shall deliver its final report to the Parties within 120 days of the date of composition of the panel. When the panel considers that this deadline cannot be met, the chairperson of the panel shall notify the Parties in writing, stating the reasons for the delay and the date on which the panel plans to deliver its final report. Under no circumstances shall the delay exceed 30 days after the deadline.
2. The final report shall include a discussion of any written comments and requests made by the Parties on the interim report. The panel may, in its final report, suggest ways in which the final report could be implemented.
3. The final report shall be made public within 15 days of its delivery to the Parties unless the Parties otherwise agree to publish the final report only in parts or not to publish the final report at all.
Article 14.20. Implementation of the Final Report
1. Where the panel finds that the respondent Party has acted inconsistently with a covered provision, the respondent Party shall take any measure necessary to comply promptly and in good faith with the findings and conclusions in the final report.
2. The respondent Party shall promptly comply with the findings and conclusions of the Panel. If it is impracticable to comply immediately, the respondent Party shall, no later than 30 days after the delivery of the final report, notify the complaining Party of the length of the reasonable period of time necessary for compliance with the final report, and the Parties shall endeavour to agree on the reasonable period of time required for compliance with the final report.
Article 14.21. Reasonable Period of Time for Compliance
1. If the Parties have not agreed on the length of the reasonable period of time, the complaining Party may, no later than 20 days after the date of receipt of the notification made by the respondent Party in accordance with paragraph 2 of Article 14.20 (Implementation of the Final Report) request in writing that the original panel determine the length of the reasonable period of time. Such request shall be notified simultaneously to the respondent Party. The 20-day period referred to in this paragraph may be extended by mutual agreement of the Parties.
2. The original panel shall deliver its decision to the Parties within 20 days from the date of the request made pursuant to paragraph 1.
3. The length of the reasonable period of time for compliance with the final report may be extended by mutual agreement of the Parties.
Article 14.22. Compliance Review
1. The respondent Party shall deliver a written notification of its progress in complying with the final report to the complaining Party at least one month before the expiry of the reasonable period of time for compliance with the final report, unless the Parties agree otherwise.
2. The respondent Party 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, along with a description on how the measure ensures compliance sufficient to allow the complaining Party to assess the conformity of the measure.
3. Where the Parties disagree on the existence of measures to comply with the final report, or their consistency with the covered provisions, the complaining Party may request in writing that the original panel decide on the matter before compensation can be sought or suspension of benefits can be applied in accordance with Article 14.23.1(c) (Temporary Remedies in Case of Non-Compliance).
4. Such request shall be notified simultaneously to the respondent Party.
5. The request shall provide the factual and legal basis for the complaint, including the identification of the specific measures at issue and an indication of why any measures taken by the respondent Party fail to comply with the final report or are otherwise inconsistent with the covered provisions.
6. The panel shall deliver its decision to the Parties within 60 days of the date of delivery of the request.
Article 14.23. Temporary Remedies In Case of Non-Compliance
1. (a) If the Respondent Party:
(i) fails to notify any measure taken to comply with the final report before the expiry of the reasonable period of time; or
(ii) notifies the complaining Party in writing that it is not possible to comply with the final report within the reasonable period of time;
(b) If the original panel finds that no measure taken to comply exists or that the measure taken to comply with the final report is inconsistent with the covered provisions,
the respondent Party shall, on request of the complaining Party, enter into consultations with a view to agreeing on a mutually agreed solution or any necessary compensation.
2. If the Parties fail to reach a mutually agreed solution or to agree on compensation within 20 days after the date of receipt of the request made in accordance with paragraph 1, the complaining Party may deliver a written notification to the respondent Party that it intends to suspend the application of benefits or other obligations under this Agreement. The notification shall specify the level of suspension of benefits or other obligations.
3. The complaining Party may begin the suspension of benefits or other obligations referred to in paragraph 2 within 20 days after the date when it served notice on the respondent Party, unless the respondent Party made a request under paragraph 7 of this Article.
4. The suspension of benefits or other obligations:
(a) shall be at a level equivalent to the nullification or impairment that is caused by the failure of the respondent Party to comply with the final report; and
(b) shall be restricted to benefits accruing to the respondent Party under this Agreement.
5. In considering what benefits to suspend in accordance with paragraph 2, the complaining Party shall apply the following principles:
(a) the complaining Party should first seek to suspend benefits in the same sector or sectors affected by the measure that the panel has found to be inconsistent with this Agreement or have caused nullification or impairment; (26)
(b) the complaining Party may suspend benefits in other sectors, if it considers that it is not practicable or effective to suspend benefits or other obligations in the same sector; and
(c) in the selection of the benefits to suspend, the complaining Party shall endeavour to take into consideration those which least disturb the implementation of this Agreement.
6. The suspension of benefits or other obligations shall be temporary and shall only apply until the inconsistency of the measure with the relevant covered provisions which has been found in the final report has been removed, or until the Parties have agreed on a mutually satisfactory agreement or any necessary compensation.
7. If the respondent Party considers that the suspension of benefits does not comply with paragraphs 4 and 5, it may request in writing that the original panel examine the matter no later than 15 days after the date of receipt of the notification referred to in paragraph 2. That request shall be notified simultaneously to the complaining Party. The original panel shall notify the parties of its decision on the matter no later than 30 days after the date of receipt of the request from the respondent Party. Benefits or other obligations shall not be suspended until the original panel has delivered its decision. The suspension of benefits or other obligations shall be consistent with this decision.
Article 14.24. Review of Any Measure Taken to Comply after the Adoption of Temporary Remedies
1. Upon the notification by the respondent Party to the complaining Party of the measure taken to comply with the final report:
(a) in a situation where the right to suspend benefits or other obligations has been exercised by the complaining Party in accordance with Article 14.23 (Temporary Remedies in Case of Non-Compliance), the complaining Party shall terminate the suspension of benefits or other obligations no later than 30 days after the date of receipt of the notification, with the exception of the cases referred to in paragraph 2; or
(b) in a situation where necessary compensation has been agreed on, the respondent Party may terminate the application of such compensation no later than 30 days after the date of receipt of the notification, with the exception of the cases referred to in paragraph 2.
2. If the Parties do not reach an agreement on whether the measure notified in accordance with paragraph 1 is consistent with the relevant covered provisions within 30 days after the date of receipt of the notification, the complaining Party shall request in writing the original panel to examine the matter. That request shall be notified simultaneously to the respondent Party. The panel shall notify its decision to the Parties no later than 30 days after the date of submission of the request. If the panel decides that the measure notified in accordance with paragraph 1 is consistent with the relevant covered provisions, the suspension of benefits or other obligations, or the application of the compensation, shall be terminated no later than 15 days after the date of the decision. If the panel determines that the notified measure achieves only partial compliance with the covered provisions, the level of suspension of benefits or other obligations, or of the compensation, shall be adapted in light of the decision of the panel.
Article 14.25. Suspension and Termination of Proceedings
If both Parties so request, the panel shall suspend its work for a period agreed by the Parties and not exceeding 12 consecutive months. In the event of a suspension of the work of the panel, the relevant time periods for the panel proceeding shall be extended by the same period of time for which the work of the panel was suspended. The panel shall resume its work before the end of the suspension period at the written request of both Parties. If the work of the panel has been suspended for more than 12 consecutive months, the authority of the panel shall lapse and the dispute settlement proceeding shall be terminated.
Article 14.26. Choice of Forum
1. Unless otherwise provided in this Article, this Chapter is without prejudice to the rights of the Parties to have recourse to dispute settlement proceedings available under other international trade agreements to which they are both Parties.
2. When a dispute arises with regard to the alleged inconsistency of a particular measure with an obligation under this Agreement and a substantially equivalent obligation under another international trade agreement to which both Parties are party, including the WTO Agreements, the complaining Party may select the forum in which to settle the dispute.
3. Once a Party has selected the forum and initiated dispute settlement proceeding under this Chapter or under the other international agreement with respect to the particular measure referred to in paragraph 2, that Party shall not initiate dispute settlement proceeding in another forum with respect to that particular measure unless the forum selected first fails to make findings on the issues in dispute for jurisdictional or procedural reasons.
4. For the purpose of paragraph 3:
(a) dispute settlement proceedings under this Chapter are deemed to be initiated when a Party requests the establishment of a panel in accordance with Article 14.8 (Establishment of a Panel);
(b) dispute settlement proceedings under the WTO Agreement are deemed to be initiated when a Party requests the establishment of a panel in accordance with Article 6 of the DSU; and
(c) dispute settlement proceedings under any other agreement are deemed to be initiated when a Party requests the establishment of a dispute settlement panel in accordance with the relevant provisions of that agreement.
Article 14.27. Costs
1. Unless the Parties otherwise agree, the costs of the panel and other expenses associated with the conduct of its proceeding shall be borne in equal parts by both Parties.
2. Each Party shall bear its own expenses and legal costs in the panel proceeding.
Article 14.28. Mutually Agreed Solution
1. The Parties may reach a mutually agreed solution at any time with respect to any dispute referred to in Article 14.3 (Scope of Application).
2. If a mutually agreed solution is reached during the panel procedure, the Parties shall jointly notify that solution to the chairperson of the panel. Upon such notification, the panel proceeding shall be terminated.
3. Each Party shall take the measures necessary to implement the mutually agreed solution within the agreed time period.
4. No later than the expiry of the agreed time period, the implementing Party shall inform the other Party in writing of any measure that it has taken to implement the mutually agreed solution.
Article 14.29. Time Periods
1. All time periods laid down in this Chapter shall be counted in calendar days from the day following the act to which they refer.
2. Any time period referred to in this Chapter may be modified by mutual agreement of the Parties.
Article 14.30. Annexes
The Joint Committee may modify Annexes 14-1 (Rules of Procedure) and 14-2 (Code of Conduct for Panellists).
Chapter 15. SMALL AND MEDIUM-SIZED ENTERPRISES
Article 15.1. General Principles
1. The Parties, recognizing the fundamental role of SMEs in maintaining dynamism and enhancing competitiveness of their respective economies, shall foster close cooperation between SMEs of the Parties and cooperate in promoting jobs and growth in SMEs.
2. The Parties recognize the integral role of the private sector in the SME cooperation to be implemented under this Chapter.
Article 15.2. Cooperation to Increase Trade and Investment Opportunities for SMEs
With a view to more robust cooperation between the Parties to enhance commercial opportunities for SMEs, each Party shall seek to increase trade and investment opportunities, and in particular shall:
(a) promote cooperation between the Parties' small business support infrastructure, including dedicated SME centres, incubators and accelerators, export assistance centres, and other centres as appropriate, to create an international network for sharing best practices, exchanging market research, and promoting SME participation in international trade, as well as business growth in local markets;
(b) strengthen its collaboration with the other Party on activities to promote SMEs owned by women and youth, as well as start-ups, and promote partnership among these SMEs and their participation in international trade;
(c) enhance its cooperation with the other Party to exchange information and best ptactices in areas including improving SME access to capital and credit, SME participation in covered government procurement opportunities, and helping SMEs adapt to changing market conditions;
(d) encourage participation in purpose-built mobile or web-based platforms, for business entrepreneurs and counsellors to share information and best practices to help SMEs link with international suppliers, buyers, and other potential business partners;
(e) endeavour to cooperate in matters that facilitate and expand public access to and use of government data, including exchanging information and experiences on ptactices and policies, with a view to encouraging the development of digital trade and creating business opportunities, especially for small and medium-sized enterprises; and
(f) arrange mutual business trips or B2B programs to improve SMEs' commercial relations and to encourage joint ventures.
Article 15.3. Information Sharing
1. Each Party shall establish or maintain its own free, publicly accessible website containing information regarding this agreement, including:
(a) the text of this Agreement;
(b) a summary of this Agreement; and