4. The panel shall notify its decision to the Parties no later than 90 days after the date of referral of the matter.
Article 21.22. Temporary Remedies In Case of Non-compliance
1. The Party complained against shall, on request of the complaining Party, enter into consultations with a view to agreeing on a mutually satisfactory compensation or any alternative arrangement if:
(a) in accordance with Article 21.21 the original panel finds that the measures taken to comply with the final report as notified by the Party complained against are inconsistent with the relevant covered provisions;
(b) the Party complained against fails to notify any measure taken to comply with the final report before the expiry of the reasonable period of time determined in accordance with paragraph 2 of Article 21.20; or
(c) the Party complained against notifies the complaining Party that it is impracticable to comply with the final report within the reasonable period of time determined in accordance with paragraph 2 of Article 21.20.
2. If the complaining Party decides not to make a request in accordance with paragraph 1 or if a request is made and no mutually satisfactory compensation nor any alternative arrangement has been agreed within 20 days after the date of receipt of the request made in accordance with paragraph 1, the complaining Party may notify the Party complained against in writing that it intends to suspend the application to the Party complained against of concessions or other obligations under the covered provisions. The notification shall specify the level of intended suspension of concessions or other obligations.
3. The complaining Party shall have the right to implement the suspension of concessions or other obligations referred to in the preceding paragraph 15 days after the date of receipt of the notification by the Party complained against, unless the Party complained against has requested arbitration in accordance with paragraph 6.
4. The suspension of concessions or other obligations:
(a) shall be at a level equivalent to the nullification or impairment that is caused by the failure of the Party complained against to comply with the final report; and
(b) may be applied to sectors that are subject to dispute settlement in accordance with Article 21.2 other than the sector or sectors in which the panel has found nullification or impairment, in particular if the complaining Party is of the view that such suspension is effective in inducing compliance.
5. The suspension of concessions or other obligations or the compensation or any alternative arrangement referred to in this Article 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 compensation or any alternative arrangement.
6. If the Party complained against considers that the suspension of concessions or other obligations does not comply with paragraph 4, that Party may request in writing the original panel to 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 to the Parties its decision on the matter no later than 30 days after the date of submission of the request. Concessions or other obligations shall not be suspended until the original panel has notified its decision. The suspension of concessions or other obligations shall be consistent with the decision.
Article 21.23. Compliance Review after the Adoption of Temporary Remedies
1. Upon the notification by the Party complained against to the complaining Party of the measure taken to comply with the final report:
(a) in a situation where the right to suspend concessions or other obligations has been exercised by the complaining Party in accordance with Article 21.22, the complaining Party shall terminate the suspension of concessions 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 mutually satisfactory compensation or an alternative arrangement has been agreed, the Party complained against may terminate the application of such compensation or arrangement 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 Party complained against. The decision of the panel shall be notified to the Parties no later than 45 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 concessions or other obligations, or the application of the compensation or alternative arrangement, shall be terminated no later than 15 days after the date of the decision. Where relevant, the level of suspension of concessions or other obligations, or of the compensation or alternative arrangement, shall be adapted in light of the decision of the panel.
Article 21.24. Suspension and Termination of Proceedings
On the joint request of the Parties, the panel shall suspend at any time the proceedings for a period agreed by the Parties not exceeding 12 consecutive months. In the event of such suspension, the relevant time periods shall be extended by the period of time for which the proceedings of the panel were suspended. The panel shall resume the proceedings at any time upon the joint request of the Parties or at the end of the agreed suspension period on the written request of a Party. The request shall be notified to the chairperson of the panel, as well as to the other Party, where applicable. If the proceedings of the panel have been suspended for more than 12 consecutive months, the authority for establishment of the panel shall lapse and the proceedings of the panel shall be terminated. The Parties may agree at any time to terminate the proceedings of the panel. The Parties shall jointly notify such agreement to the chairperson of the panel.
Section D. General Provisions
Article 21.25. Administration of the Dispute Settlement Procedure
1. Each Party shall:
(a) designate an office which shall be responsible for the administration of the dispute settlement procedure under this Chapter;
(b) be responsible for the operation and costs of its designated office; and
(c) notify the other Party in writing of the office's location and contact information no later than three months after the date of entry into force of this Agreement.
2. Notwithstanding paragraph 1, the Parties may agree to jointly entrust an external body with providing support for certain administrative tasks for the dispute settlement procedure under this Chapter.
Article 21.26. Mutually Agreed Solution
1. The Parties may reach a mutually agreed solution at any time with respect to any dispute referred to in Article 21.2.
2. If a mutually agreed solution is reached during panel proceedings or a mediation procedure, the Parties shall jointly notify the agreed solution to the chairperson of the panel or the mediator. Upon such notification, the panel proceedings or the mediation procedure 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 date of expiry of the agreed time period, the implementing Party shall inform the other Party in writing of any measures it has taken to implement the mutually agreed solution.
Article 21.27. Choice of Forum
1. Where 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 any other international agreement to which both Parties are party, including the WTO Agreement, the complaining Party may select the forum in which to settle the dispute.
2. Once a Party has selected the forum and initiated dispute settlement proceedings under this Chapter or under the other international agreement with respect to the particular measure referred to in paragraph 1, that Party shall not initiate dispute settlement proceedings 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.
3. For the purpose of paragraph 2:
(a) dispute settlement proceedings under this Chapter are deemed to be initiated when a Party requests the establishment of a panel in accordance with paragraph 1 of Article 21.7;
(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.
4. Nothing in this Agreement shall preclude a Party from implementing the suspension of concessions or other obligations authorised by the DSB. A Party shall not invoke the WTO Agreement to preclude the other Party from suspending concessions or other obligations under the covered provisions.
Article 21.28. Time Period
1. All time periods provided for in this Chapter shall be counted from the date following the act or fact to which they refer.
2. Any time period referred to in this Chapter may be modified for a particular dispute by agreement of the Parties. The panel may at any time propose to the Parties to modify any time period referred to in this Chapter, stating the reasons for the proposal. On request of a Party, the panel shall decide whether to modify the time period referred to in paragraph 2 and subparagraph 3(b) of Article 21.18, stating the reasons for its decision, inter alia, in view of the complexity of the particular dispute.
Article 21.29. Expenses
Unless the Parties agree otherwise, the expenses of the panel, including the remuneration of its arbitrators, shall be borne by the Parties in equal shares in accordance with the Rules of Procedure.
Article 21.30. Rules of Procedure and Code of Conduct
The panel proceedings provided for in this Chapter shall be conducted in accordance with the Rules of Procedure of a Panel and the Code of Conduct for Arbitrators, to be adopted by the Joint Committee at its first meeting pursuant to subparagraph 4(f) of Article 22.1.
Chapter 22. INSTITUTIONAL PROVISIONS
Article 22.1. Joint Committee
1. The Parties hereby establish a Joint Committee comprising representatives of both Parties.
2. The Joint Committee shall hold its first meeting within three months of the date of entry into force of this Agreement. Thereafter, the Joint Committee shall, unless otherwise agreed by the representatives of the Parties, meet once a year, or in urgent cases on request of either Party. The Joint Committee may meet in person or by other means, as agreed by the representatives of the Parties.
3. The meetings of the Joint Committee shall take place in the European Union or Japan alternately, unless otherwise agreed by the representatives of the Parties. The Joint Committee shall be co-chaired by the Member of the European Commission and a representative of Japan at ministerial level responsible for matters under this Agreement, or their respective delegates.
4. In order to ensure that this Agreement operates properly and effectively, the Joint Committee shall:
(a) review and monitor the implementation and operation of this Agreement and, if necessary, make appropriate recommendations to the Parties;
(b) supervise and coordinate, as appropriate, the work of all specialised committees, working groups and other bodies established under this Agreement, and recommend to them any necessary action;
(c) without prejudice to Chapter 21, seek to solve problems that may arise under this Agreement or resolve disputes that may arise regarding the interpretation or application of this Agreement;
(d) consider any other matter of interest under this Agreement as the representatives of the Parties may agree;
(e) adopt at its first meeting its rules of procedure; and
(f) adopt at its first meeting the Rules of Procedure of a Panel and the Code of Conduct for Arbitrators as referred to in Article 21.30, as well as the Mediation Procedure as referred to in paragraph 2 of Article 21.6.
5. In order to ensure that this Agreement operates properly and effectively, the Joint Committee may:
(a) establish or dissolve specialised committees, working groups or other bodies, other than those referred to in Articles 22.3 and 22.4, and determine their composition, function and tasks;
(b) allocate responsibilities to specialised committees, working groups or other bodies;
(c) provide information on issues falling within the scope of this Agreement to the public;
(d) recommend to the Parties any amendments to this Agreement or adopt decisions to amend this Agreement in instances specifically provided for in paragraph 4 of Article 23.2;
(e) adopt interpretations of the provisions of this Agreement, which shall be binding on the Parties and all specialised committees, working groups and other bodies set up under this Agreement, including panels established under Chapter 21; and
(f) take any other action in the exercise of its functions as the Parties may agree.
Article 22.2. Decisions and Recommendations of the Joint Committee
1. The Joint Committee may take decisions where provided for in this Agreement. The decisions taken shall be binding on the Parties. Each Party shall take the measures necessary to implement the decisions taken.
2. The Joint Committee may make recommendations relevant for the implementation and operation of this Agreement.
3. All decisions and recommendations of the Joint Committee shall be taken by consensus and may be adopted either by meeting in person or in writing.
Article 22.3. Specialised Committees
1. The following specialised committees are hereby established under the auspices of the Joint Committee:
(a) the Committee on Trade in Goods;
(b) the Committee on Rules of Origin and Customs-Related Matters;
(c) the Committee on Sanitary and Phytosanitary Measures;
(d) the Committee on Technical Barriers to Trade;
(e) the Committee on Trade in Services, Investment Liberalisation and Electronic Commerce;
(f) the Committee on Government Procurement;
(g) the Committee on Intellectual Property;
(h) the Committee on Trade and Sustainable Development;
(i) the Committee on Regulatory Cooperation; and
(j) the Committee on Cooperation in the Field of Agriculture.
2. The responsibilities and functions of the specialised committees referred to in paragraph 1 are defined, as appropriate, in the relevant Chapters of this Agreement and can be modified by a decision of the Joint Committee but their responsibilities shall remain within the scope of the Chapters for the implementation and operation of which they are responsible.
3. Unless otherwise provided for in this Agreement, the specialised committees shall:
(a) meet once a year, unless otherwise agreed by the representatives of the Parties to the specialised committees, or on request of a Party or of the Joint Committee;
(b) be composed of representatives of the Parties;
(c) be co-chaired, at an appropriate level, by the representatives of the Parties;
(d) hold their meetings in the European Union or Japan alternately, unless otherwise agreed by the representatives of the Parties to the specialised committees, or by any other appropriate means of communication;
(e) agree on their meeting schedules and set their agenda by consensus; and
(f) take all decisions and make recommendations by consensus either by meeting in person or in writing.
4. The specialised committees may adopt their rules of procedure. As long as they do not adopt their rules of procedure the rules of procedure for the Joint Committee apply mutatis mutandis.
5. The specialised committees may submit proposals for decisions to be adopted by the Joint Committee or take decisions in accordance with the relevant provisions of this Agreement.
6. On request of a Party or on referral from the relevant specialised committee, the Joint Committee may address matters that have not been resolved by the relevant specialised committee.
7. Each specialised committee shall inform the Joint Committee of the schedules and agenda of its meetings sufficiently in advance and shall report to the Joint Committee on results and conclusions from each of its meetings.
8. The existence of a specialised committee shall not prevent a Party from bringing any matter directly to the Joint Committee.
Article 22.4. Working Groups
1. The Working Group on Wine and the Working Group on Motor Vehicles and Parts are hereby established under the auspices of the Committee on Trade in Goods. The responsibilities and functions of these working groups are defined in Article 2.35 and Article 20 of Annex 2-C.
2. The following working groups may be established in accordance with relevant Chapters:
(a) ad hoc working groups under the auspices of the Committee on Sanitary and Phytosanitary Measures;
(b) ad hoc technical working groups under the auspices of the Committee on Technical Barriers to Trade;
(c) ad hoc working groups under the auspices of the Committee on Regulatory Cooperation; and
(d) an Animal Welfare Technical Working Group under the auspices of the Joint Committee.
3. Unless otherwise provided for in this Agreement or unless otherwise agreed by the representatives of the Parties to the working groups, the working groups shall:
(a) meet once a year, or on request of a Party or of the Joint Committee;
(b) be co-chaired, at an appropriate level, by representatives of the Parties;
(c) hold their meetings alternately in the European Union or Japan, or by any other appropriate means of communication as agreed between the representatives of the Parties to the working groups;
(d) agree on their meeting schedules and set their agenda by consensus; and
(e) take all decisions and make recommendations by consensus either by meeting in person or in writing.
4. The working groups may adopt their own rules of procedure. As long as they do not adopt such rules of procedure, the rules of procedure of the Joint Committee apply mutatis mutandis.
5. The working groups shall inform the relevant specialised committees or the Joint Committee, as appropriate, of their schedule and agenda sufficiently in advance of their meetings. They shall report on their activities at each meeting of the relevant specialised committees or the Joint Committee, as appropriate.
6. The existence of a working group shall not prevent a Party from bringing any matter directly to the Joint Committee or the relevant specialised committees.
Article 22.5. Work of Specialised Committees, Working Groups and other Bodies
In carrying out their functions, the specialised committees, working groups and other bodies established under this Agreement shall avoid duplication of their work.
Article 22.6. Contact Points
1. Each Party shall, upon the entry into force of this Agreement, designate a contact point for the implementation of this Agreement and notify the other Party of the contact details including information regarding the relevant officials. The Parties shall promptly notify each other of any change of those contact details.
2. The contact points shall:
(a) deliver and receive, unless otherwise provided for in this Agreement, all notifications and information to be provided between the Parties pursuant to this Agreement;
(b) facilitate any other communications between the Parties on any matter relating to this Agreement; and
(c) coordinate preparations for the meetings of the Joint Committee.
Chapter 23. FINAL PROVISIONS
Article 23.1. General Review
Without prejudice to the provisions concerning review in other Chapters, the Parties shall undertake a general review of the implementation and operation of this Agreement in the 10th year following the date of entry into force of this Agreement, or at such times as may be agreed by the Parties.
Article 23.2. Amendments
1. This Agreement may be amended by agreement between the Parties.
2. Such amendments shall enter into force on the first day of the second month, or on such later date as may be agreed by the Parties, following the date on which the Parties notify each other that their respective applicable legal requirements and procedures for entry into force of such amendments have been completed. The Parties shall make such notification through an exchange of diplomatic notes between the European Union and the Government of Japan.
3. In accordance with the respective domestic legal procedures of the Parties, the Joint Committee may adopt decisions to amend this Agreement in the instances referred to in paragraph 4. Notwithstanding paragraph 2, such amendments shall be confirmed by and enter into force upon the exchange of diplomatic notes between the European Union and the Government of Japan, unless otherwise agreed by the Parties.
4. Paragraph 3 shall apply to:
(a) Annex 2-A, provided that the amendments are made in accordance with the amendment of the Harmonized System and include no change on the rates of customs duty to be applied by a Party to the originating goods of the other Party in accordance with Annex 2-A;
(b) Annex 2-C, Appendices 2-C-1 and 2-C-2;
(c) Annex 2-E;
(d) Chapter 3, Annexes 3-A to 3-F and Appendix 3-B-1;
(e) Annex 10;
(f) Annex 14-A;
(g) Annex 14-B; and
(h) provisions of this Agreement referring to provisions of international agreements or incorporating them into this Agreement, in case of amendments or successor agreements thereto.
Article 23.3. Entry Into Force
This Agreement shall enter into force on the first day of the second month following the date on which the Parties notify each other that their respective applicable legal requirements and procedures for entry into force of this Agreement have been completed, unless the Parties agree otherwise. The Parties shall make such notification through an exchange of diplomatic notes between the European Union and the Government of Japan.
Article 23.4. Termination
1. This Agreement shall remain in force unless terminated pursuant to paragraph 2.
2. Either Party may notify in writing the other Party of its intention to terminate this Agreement. The termination shall take effect six months after the date of receipt by the other Party of the notification, unless the Parties otherwise agree.
Article 23.5. No Direct Effect on Persons
Nothing in this Agreement shall be construed as conferring rights or imposing obligations on persons, without prejudice to the rights and obligations of persons under other public international law.
Article 23.6. Annexes, Appendices and Footnotes
The Annexes and Appendices to this Agreement shall form an integral part of this Agreement. For greater certainty, the footnotes shall also form an integral part of this Agreement.
Article 23.7. Future Accessions to the European Union
1. The European Union shall notify Japan of any request for accession of a third country to the European Union.
2. During the negotiations between the European Union and a third country referred to in paragraph 1, the European Union shall:
(a) on request of Japan and, to the extent possible, provide any information regarding any matter covered by this Agreement; and
(b) take into account any concerns expressed by Japan.
3. The Joint Committee shall examine any effects of accession of a third country to the European Union on this Agreement sufficiently in advance of the date of such accession.