(b) evaluate the results achieved in the implementation of this Agreement;
(c) oversee the work of all committees established under this Agreement, as well as committees and working groups established pursuant to paragraph 2(b), and
(d) to deal with any other matter that may affect the operation of this Agreement or that may be entrusted to it by the Parties.
2. The Commission may:
(a) make decisions to:
(i) implement the provisions of this Agreement that require development contemplated by this Agreement;
(ii) to amend the Code of Conduct for Arbitral Dispute Resolution Procedures and the Rules of Procedure for Arbitral Tribunals in Chapter 17 (Dispute Resolution), and
(iii) to amend Annex 16.1.
(b) establish such committees and working groups as it deems appropriate within the framework of this Agreement;
(c) request the advice of persons or entities it deems appropriate;
(d) recommend amendments to this Agreement to the Parties; and
(e) take other actions, within the scope of its powers, to ensure the attainment of the objectives of this Agreement.
3. Each Party shall implement, in accordance with its legal system, the actions of the Commission referred to in paragraph 2 (1).
Article 16.3. General Points of Contact
1. The Parties designate the following General Points of Contact to facilitate communications between them on any matter covered by this Agreement:
(a) in the case of Chile, the Directorate General for Bilateral Economic Affairs of the Undersecretariat for International Economic Relations, or its successor, and
(b) in the case of Paraguay, the General Directorate of Economic Policy of the Vice-Ministry of Economic Relations and Integration, or its successor.
2. At the request of a Party, the General Contact Point of the other Party shall indicate the unit or official responsible for the matter and provide such support as may be required to facilitate communication with the requesting Party.
3. Except as otherwise provided in any Chapter of this Agreement, each Party shall notify the other Party in writing of the other contact points referred to in this Agreement within three (3) months of the date of entry into force of this Agreement.
Annex 16.1. RULES OF PROCEDURE OF THE COMMISSION
Composition of Delegations
1. Each Party shall determine the composition of its delegation for each meeting of the Commission.
2. Each Party shall inform the other Party of the composition of its delegation, as expeditiously as possible, at least five (5) days before the date of the meeting.
Regular and Special Meetings
3. The meetings of the Commission may be held in person or by any technological means and shall be chaired alternately by each Party.
4. The regular meetings of the Commission shall be held once a year and on a mutually agreed date, unless otherwise agreed by the Parties.
5. When regular meetings are held in person, they shall be held alternately in the territory of each Party, unless otherwise agreed by the Parties.
6. Any Party may request that an extraordinary meeting of the Commission be convened. When such meetings are held in person, the Parties shall agree on the place and date at which the Commission shall meet.
7. Unless otherwise agreed by the Parties, the meetings of the Commission shall be closed to the public.
Agenda for Meetings
8. For meetings of the Commission, the host Party shall prepare an agenda.
9. The agenda shall be circulated to the other Party together with any other documents relevant or related to the issues to be addressed at the meeting, at least ten (10) days in advance of the date of the meeting, unless the Parties agree otherwise.
10. The Parties may agree to include any other item on the agenda prior to its adoption.
11. The agenda will be approved by the Commission at the beginning of its meeting.
Decisions and Recommendations
12. The decisions and recommendations of the Commission shall be adopted by consensus.
13. The decisions of the Commission shall:
(a) be titled according to the subject matter;
(b) have a sequential number assigned to them;
(c) specify the date of their adoption and the manner of their entry into force; and
(d) be signed in two original copies.
Minutes
14. At the conclusion of the meeting, the host Party shall take minutes, including a record of the meeting:
(a) the matters discussed at the meeting, with a brief description of the issues addressed;
(b) the results and agreements reached, and
(c) decisions, recommendations, and other actions and measures taken.
15. They will be attached to the minutes of the meeting:
(a) the composition of the delegations of each Party;
(b) the texts of the decisions or recommendations adopted, and
(c) if applicable, any other documents relevant or related to the issues addressed.
16. The host Party shall submit the minutes with their annexes for consideration and approval by the other Party at the end of the meeting or, if this is not possible, no later than fifteen (15) days after the end of the meeting.
17. The minutes of the meeting shall be drawn up in two originals.
Meeting Costs
18. The costs of the meetings of the Commission, excluding travel and subsistence expenses of representatives, shall be borne by the host Party.
19. In the case of non-face-to-face meetings, each Party shall bear the costs of its participation in such meetings.
Chapter 17. DISPUTE RESOLUTION
Article 17.1. Objectives
1. This Chapter seeks to provide an effective, efficient and transparent dispute settlement process between the Parties with respect to the rights and obligations under this Agreement.
2. The Parties shall endeavour to reach agreement on the interpretation, application and breach of this Agreement and shall make every effort to reach a mutually satisfactory resolution of any matter that may affect its operation.
Article 17.2. Scope of Application
Except as otherwise provided in this Agreement, the provisions of this Chapter shall apply to the prevention or settlement of any dispute arising between the Parties concerning the interpretation or application of the provisions of this Agreement or where a Party considers that:
(a) a measure of the other Party is inconsistent with the obligations under this Agreement, or
(b) the other Party has otherwise failed to comply with its obligations under this Agreement.
Article 17.3. Election of Forum
1. Disputes concerning the same matter arising under this Agreement, the WTO Agreement or any other trade agreement to which the Parties are parties may be resolved in any such forum, at the option of the complaining Party.
2. For this purpose, two proceedings shall be understood as dealing with the same matter when they involve the same Parties, relate to the same measure and deal with an allegation of non-compliance with the same substantive obligation.
3. Once the claimant Party has requested the establishment of an arbitral tribunal under this Chapter or under an agreement referred to in paragraph 1, the forum selected shall be exclusive of any other forum.
Article 17.4. Consultations
1. Either Party may request in writing to the other Party consultations with respect to any matter referred to in Article 17.2 with the objective of reaching a mutually agreed solution. The consulting Party shall deliver the request to the other Party, explaining the reasons, identifying the measure at issue, and indicating the legal basis for the complaint.
2. The consulted Party shall respond in writing to the request for consultations referred to in paragraph 1 within ten (10) days of receipt of such request, unless the Parties agree on a different time limit.
3. Consultations shall be entered into in good faith.
4. Consultations shall be held within thirty (30) days from the date of receipt of the request, unless the Parties agree on a different time limit.
5. The consulted Party shall ensure expeditious and timely attention to the consultations formulated, including the participation of its competent authorities or other regulatory entities having technical expertise on the subject matter of such consultations.
6. The Parties shall make every effort to reach a mutually satisfactory resolution of the matter submitted for consultations in accordance with the provisions of this Article. To this end, each Party shall
(a) provide the necessary information to enable a full examination of the measure or matter subject to the consultations, and
(b) shall accord to confidential or proprietary information received in the course of consultations the same treatment as that accorded to it by the Party that provided the information.
7. Consultations shall be confidential and shall be held in person or by any technological means agreed by the Parties. In the event of face-to-face consultations, such consultations shall be held in the territory of the Party consulted, unless otherwise agreed by the Parties.
Article 17.5. Establishment of an Arbitral Tribunal
1. If no mutually satisfactory solution has been reached within the period of time set forth in Article 17.4.4, the complaining Party may request in writing to the Party complained against the establishment of an arbitral tribunal.
2. In the request for the establishment of an arbitral tribunal, the complaining Party shall state the reasons for its request, including identification of the measure or other matter at issue and an indication of the legal basis of the claim.
3. A Party may not request the establishment of an arbitral tribunal to review a proposed measure.
4. The date of establishment of the arbitral tribunal shall be the date on which its chairman is appointed.
Article 17.6. Terms of Reference of the Arbitral Tribunal
1, Unless otherwise agreed by the Parties within fifteen (15) days after receipt of the request for the establishment of the arbitral tribunal, the terms of reference of the arbitral tribunal shall be:
"Examine, in an objective manner and in the light of the relevant provisions of the Agreement, the matter referred to in the request for the establishment of the arbitral tribunal and make findings and rulings in accordance with Articles 17.12 and 17,13."
2. Where the complaining Party requires, in the request for the establishment of the arbitral tribunal, that the tribunal make findings on the extent of the adverse trade effects caused to it by the breach of the obligations of this Agreement, the terms of reference shall expressly so state.
Article 17.7. Qualifications of Arbitrators
1. Every referee shall:
(a) have expertise or experience in law, international trade, matters relating to the subject matter of this Agreement or the settlement of disputes arising under international trade agreements;
(b) be selected strictly on the basis of objectivity, impartiality, reliability and sound judgment;
(c) be independent, not be affiliated with, and not receive instructions from, any of the Parties; and
(d) comply with the Code of Conduct set out in Annex 17.2.
2. The chairman of the arbitral tribunal, in addition to meeting the requirements set out in paragraph 1, shall be a jurist.
3. Persons who have participated in any of the alternative means of dispute resolution referred to in Article 17.19 may not act as arbitrators in the same dispute.
Article 17.8. Selection of the Arbitral Tribunal
1. The arbitral tribunal shall consist of three (3) arbitrators.
2. Each Party shall, within twenty (20) days after receipt of the request for the establishment of the arbitral tribunal, appoint one arbitrator and one alternate arbitrator and propose up to three (3) candidates to serve as the presiding arbitrator of the arbitral tribunal. The chairman of the arbitral tribunal may not be a national or have his or her permanent residence in the territory of any Party, nor be or have been employed by any Party, unless otherwise agreed by the Parties. This information shall be notified in writing to the other Party.
3. If a Party fails to appoint its arbitrator within the time period specified in paragraph 2, the arbitrator shall be appointed by the other Party in accordance with the Rules of Procedure set out in Annex 17.1.
4. The Parties shall make every effort to appoint by mutual agreement the chairman of the arbitral tribunal, from among the candidates proposed by the Parties, within twenty (20) days after the expiration of the period provided for in paragraph 2. If the Parties are unable to agree on the chairman of the arbitral tribunal within the above-mentioned period, the chairman and his alternate shall be appointed by lot by the Parties in accordance with the Rules of Procedure.
5. In the event of the death, resignation or inability of an arbitrator to perform his or her duties, his or her alternate shall take over. If the alternate is unable to assume his or her function for the same reasons, a successor shall be selected in accordance with the provisions of this Article. The time limits of the proceedings shall be suspended, from the date of death, resignation or inability of the arbitrator to assume his functions, until the date of selection of the successor. The successor shall assume the functions and duties of the appointed arbitrator.
6. Any Party may challenge an arbitrator or a candidate as provided in the Rules of Procedure.
7. The members of the arbitral tribunal, by accepting appointment, shall undertake in writing to act in accordance with the provisions of this Chapter, the Rules of Procedure and this Agreement.
Article 17.9. Role of the Arbitral Tribunal
1. The function of the arbitral tribunal is to make an objective assessment of the matter submitted to it, including an analysis of the facts of the case and the applicability of and compliance with this Agreement. It shall also make such findings and determinations as are requested in the terms of reference, in accordance with Article 17.6, and as are necessary for the resolution of the dispute.
2. The arbitral tribunal shall interpret this Agreement in accordance with international law as set forth in Articles 31 and 32 of the Vienna Convention on the Law of Treaties 1969.
3. The findings and determinations of the arbitral tribunal may not add to or diminish the rights and obligations of the Parties under this Agreement.
Article 17.10. Applicable Law
The arbitral tribunal shall decide the dispute on the basis of the provisions of this Agreement and the protocols and instruments concluded thereunder.
Article 17.11. Rules of Procedure of the Arbitral Tribunal
1. Unless the Parties agree otherwise, the arbitral tribunal established under this Chapter shall follow the rules of procedure contained in the Annex. 17.1. The arbitral tribunal may establish, in consultation with the Parties, supplementary tules of procedure that do not conflict with the provisions of this Agreement and the Rules of Procedure set out in Annex 17.1.
2. The rules of procedure of the arbitral tribunal shall ensure:
(a) the opportunity for each Party to submit at least initial and rebuttal written submissions;
(b) the right of each Party to at least one hearing before the arbitral tribunal;
(c) the right of each Party to present oral arguments;
(d) hearings shall be closed to the public, unless the Parties agree otherwise;
(e) that the deliberations of the arbitral tribunal are confidential, as well as documents and pleadings designated as confidential or privileged by a Party, and
(f) the protection of information that either Party designates as confidential or proprietary information.
3. Notwithstanding paragraph 2, a Party may make public statements of its views on the dispute, but shall treat as confidential or privileged information, documents and written submissions that the other Party has provided to the arbitral tribunal and that the arbitral tribunal has designated as confidential or privileged.
4. Where a Party has provided information, documents or submissions classified as confidential or privileged, it shall, at the request of the other Party, within thirty (30) days thereafter, provide a non-confidential or non-proprietary summary of such information, documents or submissions, which may be made public.
5. At the request of a Party or on its own initiative, if both Parties so agree, the arbitral tribunal may seek information and technical advice from any person or entity it deems appropriate under the Rules of Procedure. The information or advice obtained shall not bind the arbitral tribunal. The arbitral tribunal shall provide the Parties with a copy of any opinion or advice obtained and an opportunity to comment.
6. The arbitral tribunal shall seek to reach its decisions by unanimity, including its award. If this is not possible, the arbitral tribunal may adopt them by majority.
7. Each Party shall bear the cost of the arbitrator it appoints or should have appointed pursuant to Article 17.8 and its expenses. The costs of the presiding arbitrator and other expenses associated with the conduct of the arbitral tribunal shall be borne by the Parties in equal shares, in accordance with the Rules of Procedure.
Article 17.12. Preliminary Report
1. The preliminary report shall be based on the relevant provisions of this Agreement, the submissions and arguments of the Parties, and any information and technical advice that the arbitral tribunal has obtained pursuant to Article 17.11.5.
2. Unless the Parties agree otherwise, within ninety (90) days of its establishment, or sixty (60) days in cases of urgency, the arbitral tribunal shall submit a preliminary report to the Parties.
3. In exceptional cases, when the arbitral tribunal considers that it cannot issue its preliminary report within ninety (90) days, or within sixty (60) days in cases of urgency, it shall inform the Parties in writing of the reasons for the delay and shall include an estimate of the time within which it will render its award. In no event shall the period of delay exceed an additional thirty (30) days, unless the Parties provide otherwise.
4. The preliminary report shall contain:
(a) a summary of the submissions and oral arguments of the Parties;
(b) the findings of fact and law;
(c) a determination on the merits as to whether or not a Party is in breach of its obligations under this Agreement, or any other determination called for in the terms of reference, and
(d) its recommendations, where applicable, that the Party complained against take action in accordance with this Agreement.
5. A Party may submit written observations on the preliminary report to the arbitral tribunal within fifteen (15) days after the notification of the preliminary report or any other time limit set by the arbitral tribunal.
6. After considering the written observations on the preliminary report, the arbitral tribunal may reconsider the preliminary report and conduct any further examination it deems appropriate.
Article 17.13. Award of the Arbitral Tribunal
1. The arbitral tribunal shall notify the Parties of the award within one hundred and twenty (120) days from the date of the establishment of the arbitral tribunal, unless the Parties agree on a different time period.
2. The award of the arbitral tribunal shall be final and binding on the Parties. It shall be made in accordance with Article 17.11.6, shall be reasoned, and shall be signed by the presiding arbitrator and the other arbitrators. The arbitrators may not cast dissenting votes, and shall maintain the confidentiality of the vote.
3. Unless the Parties agree otherwise, either Party may publish the arbitral tribunal's award after fifteen (15) days after it has been notified, subject to the protection of confidential or proprietary information.
Article 17.14. Request for Clarification of the Award
1. Within ten (10) days after the notification of the award, any Party may apply in writing to the arbitral tribunal for clarification of any finding or determination in the award.
2. The arbitral tribunal shall respond to such request within ten (10) days of its submission.
3. The filing of a request under paragraph 1 shall not affect the time limit referred to in Article 17.17.
Article 17.15. Suspension and Termination of Proceedings
1. The Parties may agree to suspend the work of the arbitral tribunal at any time during the proceedings for up to twelve (12) months following the date on which they reach such agreement. If the work of the arbitral tribunal remains suspended for more than twelve (12) months, the terms of reference of the arbitral tribunal shall terminate, unless the Parties agree otherwise. If the terms of reference of the arbitral tribunal have lapsed and the Parties have not reached a settlement of the dispute, nothing in this Article shall prevent a Party from initiating new proceedings concerning the same subject matter.
2. The Parties may terminate the arbitral tribunal proceedings at any time prior to the rendering of the award by a joint communication addressed to the presiding arbitrator.
Article 17.16. Compliance with the Award of the Arbitral Tribunal
1. Upon notification of the arbitral tribunal's award, the Parties shall agree on its enforcement, in accordance with the findings, conclusions and recommendations made by the arbitral tribunal.
2. Where the arbitral tribunal determines in its award that the measure of the Party complained against is inconsistent with the provisions of this Agreement, that Party shall, whenever possible, eliminate the inconsistency.
3. Unless the Parties agree otherwise, the Party complained against shall have a reasonable period of time to eliminate the nonconformity if it is impracticable to do so immediately.
4. The Parties shall endeavor to agree on the reasonable period of time. If the Parties are unable to agree within thirty (30) days after the notification of the award, any Party may, no later than forty-five (45) days after the notification of the award, refer the request to the presiding arbitrator to determine the period of the reasonable period of time.