(a)    dispute settlement procedures under the WTO Agreement are deemed to be initiated by a party's request for the establishment of an arbitration panel under Article 6 of the DSU;

(b)    dispute settlement procedures under any other agreement are deemed to be initiated by a party's request for the establishment of a dispute settlement panel or tribunal in accordance with the provisions of that agreement; and

(c)    dispute settlement procedures under this Chapter are deemed to be initiated by a party's request for the establishment of an arbitration panel under Article 21.7.

3.    Notwithstanding paragraph 1 and subject to paragraph 4, when the European Union or MERCOSUR or one or more of the Signatory MERCOSUR States has or have requested the establishment of a panel under Article 6 of the DSU or under the relevant provisions of another agreement to which the relevant parties are party, or an arbitration panel pursuant to Article 21.7, that party may not initiate another set of proceedings on the same matter in any of the other fora, except in cases where the competent body in the forum chosen has not taken a decision on the substance of the matter due to jurisdictional or procedural reasons other than termination of the proceedings following a request for withdrawal or suspension of the proceedings.

4.    Once MERCOSUR has requested the establishment of an arbitration panel under Article 21.7, a Signatory MERCOSUR State shall not initiate another proceeding on the same matter in any other forum. Once the European Union has requested the establishment of an arbitration panel under Article 21.7 against MERCOSUR, the European Union shall not initiate another proceeding against one or more Signatory MERCOSUR States in any other forum, if the contested measure of that or those Signatory MERCOSUR States is a measure implementing the contested measure of MERCOSUR and the European Union alleges the violation of a substantially equivalent obligation.

5.    Two or more disputes concern the same matter when they involve the same parties to the dispute, refer to the same measure and deal with the alleged violation of a substantially equivalent obligation 92 .

6.    Without prejudice to paragraph 3, nothing in this Agreement shall preclude a Party from suspending obligations authorised by the Dispute Settlement Body of the WTO or authorised under the dispute settlement procedures of another international agreement to which the disputing parties are party. The WTO Agreement or the other international agreement between the parties shall not be invoked to preclude a Party from suspending obligations under this Chapter.

ARTICLE 21.24

Mutually agreed solution

1.    The parties may reach a mutually agreed solution at any time with respect to any dispute referred to in Article 21.4. The parties shall agree upon a time period for the implementation of such a solution.

2.    If a mutually agreed solution is reached during the arbitration panel proceedings, the parties shall jointly notify that solution to the chairperson of the arbitration panel. Upon such notification, the arbitration panel proceedings shall be terminated.

3.    Each party shall adopt the measures necessary to implement the mutually agreed solution within the agreed time period.

4.    The solution may be adopted by means of a decision of the Trade Council. The conclusion of the mutually agreed solution between the parties may be subject to the completion of any necessary internal procedures. Mutually agreed solutions shall be made publicly available without containing information that a party has designated as confidential.

5.    The implementing party shall, within the agreed time period, inform the other party, in writing, of any measure that it has taken to implement the mutually agreed solution.

ARTICLE 21.25

Time periods

1.    The arbitration panel or the mediator may at any time propose to the parties to modify any time period referred to in this Chapter, stating the reasons for the proposal.

2.    Any time period mentioned in this Chapter may be extended by mutual agreement of the parties.

ARTICLE 21.26

Confidentiality

The deliberations of the arbitration panel shall be confidential. The arbitration panel and the parties shall treat as confidential any information submitted by a party to the arbitration panel which that party has designated as confidential. Where that party submits a confidential version of its written submissions to the arbitration panel, it shall also, upon request of the other party, provide a non‑confidential summary of the information contained in its submissions that may be disclosed to the public.

ARTICLE 21.27

Costs

1.    Each party shall bear its own expenses in relation to the participation in an arbitration panel or mediation proceedings.

2.    The parties 93 shall share jointly and equally the expenses in relation to organisational matters, including the remuneration and expenses of the arbitrators and of the mediator in accordance with Annex 21-A.

CHAPTER 22

INSTITUTIONAL PROVISIONS

ARTICLE 22.1

Trade Council

1.    A Trade Council is hereby established to oversee the fulfilment of the objectives of this Agreement and supervise its implementation. The Trade Council shall address the matters covered by this Agreement and shall examine any major issue arising within the framework of this Agreement.

2.    The Trade Council shall be composed of representatives of the European Union, on the one side, and of each of the Signatory MERCOSUR States, on the other, at ministerial level with responsibility for trade and trade-related matters, or by their designees.

3.    The Trade Council shall meet at ministerial level at regular intervals, at least on a biennial basis or on an ad-hoc basis as mutually agreed. It may also meet via teleconference, video-conference or through other means, as mutually agreed by the Parties.

4.    The Trade Council shall adopt its own rules of procedure and the rules of procedure of the Trade Committee.

5.    The Trade Council shall be co-chaired by a representative of the European Union and a representative of MERCOSUR in accordance with the provisions laid down in its rules of procedure taking into consideration the specific issues to be addressed at any given session.

6.    The Trade Council shall have the power to:

(a)    oversee the fulfilment of the objectives of this Agreement and supervise its implementation;

(b)    discuss any matter covered by this Agreement and without prejudice to Chapter 21 address any major issue arising from its implementation;

(c)    take decisions and make appropriate recommendations to the Parties as provided for in this Agreement;

(d)    adopt, through decisions, interpretations of the provisions of this Agreement which shall be binding on the Parties and all subcommittees and other bodies set up under this Agreement, including panels established under Chapter 21;

(e)    take such other action in the exercise of its functions as the Parties may agree; and

(f)    adopt decisions to amend, in fulfilment of the objectives of this Agreement:

(i)    Annex 2-A in accordance with Article 2.4(9);

(ii)    Appendix 2-D-1 in accordance with paragraph 6 of Article 2 of Annex 2-D;

(iii)    Appendix 2-D-2 in accordance with paragraph 3 of Article 4 of Annex 2-D;

(iv)    Appendix 2-D-3 in accordance with paragraph 4 of Article 5 of Annex 2-D;

(v)    Chapter 3 in accordance with Article 3.34;

(vi)    Section A of Annex 5-A in accordance with paragraph 9 of Article 5.8;

(vii)    Annex 6-A in accordance with Article 6.18;

(viii)    Annexes 12-A to 12-E in accordance with Article 12.26;

(ix)    Annexes 12-F to 12-J in accordance with Article 12.12;

(x)    Annex 13-A in accordance with Article 13.39;

(xi)    Annex 13-B in accordance with Article 13.39;

(xii)    Annex 13-C in accordance with Article 13.39;

(xiii)    Annex 13-E, in accordance with Article 13.39;

(xiv)    Annex 17-A, in accordance with Article 17.7;

(xv)    Annexes 21-A and 21-B in accordance with Article 21.22; and

(xvi)    any other provision, Annex, Appendix or Protocol, for which the possibility of such decision is explicitly foreseen in this Agreement.

7.    Unless the Parties agree otherwise, 3 (three) years after the entry into force of this Agreement, and every 5 (five) years thereafter, the Trade Council shall initiate a review process of this Agreement. Based on the outcome of each review, the Trade Council shall deliberate on the need to amend this Agreement.

8.    The decisions adopted by the Trade Council shall be binding on the Parties, which shall take the measures necessary for the implementation of these decisions. The decisions referred to in point (f) of paragraph 6 shall be subject to Article 23.5(2). All decisions and recommendations of the Trade Council shall be adopted by agreement of the Parties and in accordance with the Trade Council's rules of procedure.

9.    The Trade Council may delegate to the Trade Committee any of its functions, including the power to take decisions, in accordance with the Trade Council's rules of procedure.

ARTICLE 22.2

Trade Committee

1.    A Trade Committee is hereby established.

2.    The Trade Committee shall be composed of representatives of the European Union, on the one side, and each of the Signatory MERCOSUR States, on the other, at senior official level with responsibility for trade-related matters or by their designees.

3.    The Trade Committee shall be co-chaired by a representative of MERCOSUR and a representative of the European Union taking into consideration the specific issues to be addressed in any given session.

4.    The Trade Committee shall generally meet once a year alternately in Brussels and in a State Party to MERCOSUR on a date and with an agenda agreed in advance by the Parties. Additional meetings may also be convened by mutual agreement, at the request of either the European Union or MERCOSUR. It may also meet via teleconference, video-conference or through other means, as mutually agreed by the Parties.

5.    The Trade Committee shall have the power to:

(a)    assist the Trade Council in the performance of its duties;

(b)    prepare the meetings of the Trade Council;

(c)    review the implementation of this Agreement including with a view to appraising its impacts on employment, investment and trade between the Parties; the review shall consider views or recommendations of civil society actors, including non-governmental organizations, business and employers' organizations, social movements and trade unions, taking into account in particular the provisions of Articles 22.5 to 22.7, consistent with each Party's laws and regulations;

(d)    take decisions as provided for in this Agreement or where such power has been delegated to it by the Trade Council; when exercising delegated powers, the Trade Committee shall take its decisions in accordance with the rules of procedure of the Trade Council;

(e)    supervise the work of all subcommittees established in accordance with this Agreement;

(f)    explore the most appropriate way to prevent or solve any difficulty that may arise in relation to the interpretation and application of the Agreement without prejudice to Chapter 21 (Dispute Settlement);

(g)    establish additional subcommittees, to allocate responsibilities within its competence to subcommittees, to decide to modify the functions of the sub-committees it establishes, including by assigning new ones, or to dissolve the subcommittees;

(h)    prepare decisions for adoption by the Trade Council, in compliance with the specific objectives of this Agreement, including the modifications referred to in Article 22.1(6)(f), or adopt such decisions in the intervals between the meetings of the Trade Council, or when the Trade Council cannot meet; and

(i)    take any other action in the exercise of its functions as the Parties may agree or as instructed by the Trade Council.

6.    The decisions adopted by the Trade Committee shall be binding on the Parties, which shall take the measures necessary for the implementation of these decisions. The decisions referred to in points (d) and (h) of paragraph 5 that introduce amendments to this Agreement shall be subject to Article 23.4(2). All decisions of the Trade Committee shall be adopted by agreement of the Parties.

ARTICLE 22.3

Subcommittees

1.    The subcommittees shall be composed of representatives of the European Union, on the one part, and of each of the Signatory MERCOSUR States, on the other part.

2.    The subcommittees shall meet at an appropriate level at the request of a Party, and, in any event, at least once a year. If in person, meetings shall be held alternately in Brussels and in one of the Signatory MERCOSUR States. The subcommittees may also meet via teleconference, video-conference or through other means, as mutually agreed by the Parties. The subcommittees shall be co-chaired by a representative of the European Union and a representative of MERCOSUR.

3.    Each subcommittee shall agree on its meeting schedule and set its agenda by mutual consent.

4.    The following subcommittees are hereby established under the auspices of the Trade Committee:

(a)    the Subcommittee on trade in goods;

(b)    the Subcommittee on trade in wine products and spirits;

(c)    the Subcommittee on customs, trade facilitation and rules of origin;

(d)    the Subcommittee on SPS matters;

(e)    the Subcommittee on dialogues on issues related to the agri-food chain;

(f)    the Subcommittee on trade in services and establishment;

(g)    the Subcommittee on government procurement;

(h)    the Subcommittee on intellectual property rights; and

(i)    the Subcommittee on trade and sustainable development.

5.    With respect to issues related to their area of competence, the subcommittees shall have the power to:

(a)    monitor the implementation and ensure the proper functioning of this Agreement;

(b)    adopt by agreement of the Parties decisions and recommendations in respect of all matters where this Agreement so provides;

(c)    discuss issues arising from the implementation of this Agreement or of any supplementing agreement with a view to resolving them, without prejudice to Chapter 21; and

(d)    provide a forum for the Parties to exchange information, including discussing best practices and sharing implementation experience.

6.    The tasks of the subcommittees are further defined as appropriate in the relevant Chapters of this Agreement and can be modified, if necessary, by decision of the Trade Committee.

7.    The subcommittees shall conduct the preparatory technical work necessary to support the functions of the Trade Council and the Trade Committee, including when those bodies have to adopt decisions or recommendations.

8.    The subcommittees shall report on their activities to the Trade Committee. The existence of a subcommittee shall not prevent either Party from bringing any matter directly to the Trade Committee.

9.    The Trade Committee shall adopt rules of procedure which determine the composition, duties and functioning of the subcommittees and other bodies.

ARTICLE 22.4

Coordinators of the Agreement

1.    The European Union and each Signatory MERCOSUR State shall each appoint a Coordinator and notify the other Party thereof within 30 (thirty) days following the entry into force of this Agreement.

2.    The coordinators shall:

(a)    prepare the agenda and coordinate the preparation of the meeting of the Trade Council and the Trade Committee in accordance with Articles 22.1 and 22.2;

(b)    follow up on the decisions adopted by the Trade Council or the Trade Committee, as appropriate;

(c)    act as contact points to facilitate communication between the Parties on any matter covered by this Agreement, unless otherwise provided in this Agreement;

(d)    receive any notifications and information submitted under this Agreement, including any notification or information submitted to the Trade Council or the Trade Committee, unless otherwise provided in this Agreement; and

(e)    fulfil any other tasks as requested by the Trade Council or the Trade Committee.

ARTICLE 22.5

Relationship with Civil Society

1.    In order to facilitate the implementation of this agreement the Parties shall promote consultations with civil society through the establishment of an appropriate mechanism of consultation and the promotion of interaction between the representatives of their civil society.

2.    The Parties shall promote the dialogue between the Economic and Social Committee, from the European Union and the Consultative Social and Economic Forum, for MERCOSUR and encourage their contribution to the mechanisms set out below.

ARTICLE 22.6

Domestic Advisory Groups

1.    The EU Party and the MERCOSUR Party shall each designate a Domestic Advisory Group, established in accordance with each Party's internal arrangements, to advise the Party concerned on issues covered by this Agreement. It should be comprised of a balanced representation of independent civil society organisations including non-governmental organisations, business and employers' organisations and trade unions active on economic, development, social, human rights, environmental and other matters.

2.    The Parties shall promote a regular dialogue with their Domestic Advisory Group and shall consider views or recommendations submitted by their respective Domestic Advisory Group on the implementation of this Agreement.

3.    In order to promote public awareness of the Domestic Advisory Groups, the EU Party and the MERCOSUR Party shall each made available to the public the list of organisations participating in consultations as well as the contact point for that group.

ARTICLE 22.7

Civil Society Forum

1.    The Parties shall facilitate the organisation of a Civil Society Forum, to conduct a public dialogue on the implementation of this Agreement and shall agree at the first meeting of the Trade Council on operational guidelines for the conduct of the Forum.

2.    The Parties may also facilitate participation in the Civil Society Forum by virtual means.

3.    The Civil Society Forum shall be open for the participation of independent civil society organisations established in the territories of either the EU Party or the MERCOSUR Party, including members of the Domestic Advisory groups referred to in Article 22.6. The Parties shall promote a balanced representation, including, non-governmental organisations, business and employers' organizations and trade unions active on economic, development, social, human rights, environmental and other matters.

4.    The representatives of the Parties participating in the Trade Council or the Trade Committee, as appropriate, shall take part in a session of the meeting of the Civil Society Forum in order to present information on the implementation of the Agreement and to engage in a dialogue with the Forum.

CHAPTER 23

GENERAL AND FINAL PROVISIONS

ARTICLE 23.1

Territorial application

1.    This Agreement shall apply:

(a)    to the territories in which the Treaty on European Union and the Treaty on the Functioning of the European Union are applicable, under the conditions laid down in those Treaties; and

(b)    to the territories of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Oriental Republic of Uruguay, respectively.

2.    References to "territory" in this Agreement shall include air space and territorial sea as provided in the United Nations Convention on the Law of the Sea of 10 December 1982.

3.    References to "territory" in this Agreement shall be understood in this sense, save as otherwise expressly provided.

4.    As regards those provisions concerning the tariff treatment of goods, including provisions on customs and trade facilitation, mutual administrative assistance in customs matters and rules of origin, as well as the temporary suspension of this treatment, this Agreement shall also apply to those areas of the customs territory of the European Union, as defined by Article 4 of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code 94 , not covered by point (a) of paragraph 1 of this Article.

ARTICLE 23.2

Entry into force

1.    This Agreement shall enter into force between on the one part, the European Union and, on the other part, MERCOSUR and the Signatory MERCOSUR States on the first day of the month following the date on which they have notified each other in writing of the completion of their respective internal procedures required for this purpose.

2.    Notifications shall be sent to the Secretary-General of the Council of the European Union and the Government of the Republic of Paraguay, or its successors, who are the Depositories of this Agreement.

ARTICLE 23.3

Application before entry into force

1.    This Agreement may be provisionally applied. Such provisional application may take place between, on the one part, the European Union and, on the other part, one or more of the Signatory MERCOSUR States in accordance with their respective internal procedures.

2.    The provisional application of this Agreement by the European Union and a Signatory MERCOSUR State shall begin on the first day of the second month following the date on which the European Union and that Signatory MERCOSUR State have notified each other of the completion of their respective internal procedures or ratification of the Agreement and confirm their agreement to provisionally apply the Agreement.

3.    Notifications shall be sent to the Depositories of this Agreement.

4.    The Trade Council, as well as the Trade Committee and other bodies established under this Agreement, may exercise their functions in respect of this Agreement during the period in which this Agreement is being provisionally applied. Any decisions adopted during this period in the exercise of their functions, shall apply exclusively between the Parties applying the Agreement provisionally and shall cease to be effective between the Party or Parties that cease to apply the Agreement provisionally and the remaining Party or Parties.

4.    Where, in accordance with this Article, this Agreement provisionally applies by the European Union and one or more Signatory MERCOSUR State, any reference to:

(a)    MERCOSUR shall be understood to refer to such Signatory MERCOSUR States that have agreed to apply the Agreement provisionally;

(b)    "the Parties" shall be understood to refer to such Signatory MERCOSUR State or States that have agreed to apply the Agreement provisionally and the European Union; and

(c)    the date of entry into force of the Agreement shall be understood to refer to the date from which provisional application takes place.

5.    Amendments to this Agreement may also provisionally apply in accordance with this Article. If amendments to this Agreement are adopted during the provisional application of the Agreement, they shall apply to a Signatory MERCOSUR State upon its agreement to provisionally apply the Agreement in accordance with paragraph 2 and shall remain valid after entry into force of the Agreement.