Article 19.06. Consultations
1. Any Party may request in writing consultations with the other party with respect to any measure adopted or planned, or any other matter it considers that might affect the operation of this treaty in terms of article 19.03.
2. The party requesting consultations shall deliver a copy of the request to the other parties, which may participate in the same as the parties rejects in writing, provided that demonstrate its substantial trade interest in the matter, within ten (10) days following the submission of the request for consultations.
3. The parties entitled to:
a) Provide information to examine the manner in which the measure adopted or proposed or any other matter might affect the operation of this Treaty; and
b) Treat any confidential information exchanged in the course of consultations in the same manner as the party providing the information.
Article 19.07. Intervention by the Commission, Good Offices, Mediation and Conciliation
1. Consulting Any Party may request in writing that the Commission meet provided that:
a) An issue is not resolved in accordance with article 19.06 Within thirty (30) days after the delivery of the request for consultations; or
b) The Party to which it was addressed to the request for consultations did not reply within ten (10) days of the delivery of the same.
2. A Party may also request in writing that the Commission in accordance with article 18.04 (4) (General provisions).
3. The request referred to in paragraph 1 shall bring the measure or any other matter complained of and indicate the provisions of this Agreement that it considers applicable.
4. Unless it decides otherwise, the Commission shall convene within ten (10) days of the delivery of the request and with the aim of reaching a mutually satisfactory solution to the dispute, shall:
a) Convene technical advisers or create expert groups as it deems necessary;
b) Seek the good offices, conciliation or mediation a person or group of persons; or
c) Make recommendations.
5. Unless it decides otherwise, the Commission shall carry forward two or more before proceedings according to this article regarding the same measure. the Commission may consolidate two or more proceedings regarding other matters before under this article, when it deems appropriate to be considered jointly.
Article 19.08. Request for Integration of the Arbitration Panel
1. The Party that has requested the intervention of the Commission under Article 1907, may request in writing the establishment of an arbitral group when the issue has not been resolved within:
a) Thirty (30) days after the meeting of the Commission, or, if this is not done, thirty (30) days after the delivery of the request for a meeting of the Commission;
b) thirty (30) days after the Commission has met and has accumulated the most recent matter in accordance with Article 19.07; or
c) any other period that warring parties agree.
2. The party requesting the integration of the arbitral panel shall deliver the request to the party or parties against which makes its claim and, if any, to the other Party in accordance with paragraph 1 have the power to request the establishment of an arbitral panel. the latter shall be a period of ten (10) days of the receipt of the request, to express their interest in participating in the arbitration as a party complaining.
3. Within fifteen (15) days of the delivery of the request or, where appropriate, within fifteen (15) days after the expiry of the period referred to in paragraph 2, the Parties involved shall meet to integrate the arbitral group under article 19.11. such a meeting shall take place with the parties or attending.
4. A Party in accordance with paragraph 1 has the power to request the integration of the arbitral group and decide not to participate as a complaining party in accordance with the terms of paragraph 2, may participate only as a third party before the arbitral group in accordance with article 19.13 subject to express their interest in participating as such within ten (10) days of the receipt of the request for the integration of the arbitral panel.
5. If a Party, pursuant to paragraph 4, decides not to intervene as third party, refrain from initiating thereafter in respect of the same matter, in the absence of a significant change of economic or commercial circumstances:
a) A dispute settlement procedure under this chapter; and
b) A dispute settlement procedure in accordance with the understanding.
6. Unless otherwise agreed between the parties - the arbitral group shall be composed of and perform its functions in accordance with the provisions of this chapter.
Article 19.09. List of Arbitrators
1. The Parties shall establish by consensus a list of up to sixty (60) persons who have the necessary skills and the provision to be arbitrators, of which at least five (5) shall be nationals of each party and five (5) shall not be a national of either party.
2. The list of arbitrators may be modified every three (3) years. notwithstanding the above, at the request of a party, the Commission shall review the list of arbitrators before the expiry of this period.
3. Members of the roster of arbitrators shall meet the qualifications set out in article 7.10 (1).
Article 19.10. Qualities of Arbitrators
1. All the arbitrators shall meet the following qualifications:
a) Have expertise or experience in law and international trade or other matters related to this Treaty or in the settlement of disputes arising under international trade agreements;
b) If elected strictly according to their reliability and objectivity, probity, sound judgment;
c) Be independent, not linked with the parties and not receive instructions from the same; and
d) Comply with the code of conduct established by the Commission.
2. Persons that have participated in a dispute under article 4 (1907), may not be arbitrators for the same dispute.
Article 19.11. Integration of the Arbitral Group
1. In the event to the integration of the arbitral group warring parties shall observe the following procedure:
a) The arbitral group shall be composed of three (3) members;
b) The Parties involved shall endeavour to agree on the designation of the Chair of the arbitral panel;
c) If the parties fail to agree on the designation of the Chair of the arbitral panel, one appointed by lot, hereinafter. any person appointed as Chairman of the arbitral group shall be a member of the list referred to in article 1909 hours and shall not be a national of any of the Parties;
d) Each Party shall select one combatant (1) of the other litigants arbitrator National Party. notwithstanding the above, opposing parties concerned may agree that the arbitral group shall serve as arbitrators are not nationals of either party; and
e) If a Party fails to select a litigant, the arbitrator shall be appointed by lot from among nationals of the other party combatant included in the list referred to in article 1909 hours.
2. In the event that a party combatant composed of two or more countries of Central America, one of them elected, by lot shall represent the other in respect of the procedure set out in paragraph 1.
3. The arbitrators shall preferably be selected from the roster. any Party may challenge litigants at the meeting, without giving due to any person not included in the list referred to it as an arbitrator from the other party litigants.
4. Where a Party considers that an arbitrator litigants is in violation of the Code of Conduct, opposing parties shall consult and agreement of that arbitrator, contemporaneous and select a new one pursuant to the provisions of this article.
Article 19.12. Model Rules of Procedure
1. The Commission shall establish model rules of procedure, in accordance with the following principles:
a) The procedures shall ensure the right to a hearing before the arbitration panel as well as the opportunity to submit arguments and written responses; and
b) The hearings before the arbitration panel discussions and the initial report and written submissions and to all communications presented in the same, shall be of a confidential nature.
2. Unless otherwise agreed between the parties - the arbitral proceedings before the Group shall be governed by the Model Rules of Procedure.
3. Unless the parties agree otherwise, the terms of reference of the arbitration panel shall be:
"Review in the light of the provisions of this Treaty, the dispute referred to it in the request for a meeting of the Commission, and issue reports referred to in articles 19.15 and 19.16".
4. If the complaining party claims that a matter has been a cause of nullification or impairment of benefits in the sense of 19.03 Annex, the terms of reference shall so indicate.
5. Where a Party combatant request the arbitration panel to make findings as to the degree of adverse trade effects caused to the measure adopted by the other party, which it considers incompatible with this Agreement or to have caused nullification or impairment in the sense of 19.03 Annex, the terms of reference shall so indicate.
Article 19.13. Third Parties
A third party shall be entitled, upon written notice to the parties to the conflict, to attend hearings in accordance with the model rules of procedure, to be heard by the arbitral group as well as to provide and receive written submissions. such submissions shall be reflected in the final report of the arbitral panel.
Article 19.14. Information and Technical Advice
At the request of a party or on its own initiative, the arbitral panel litigant may seek information and technical advice from persons or institutions as it deems appropriate.
Article 19.15. Preliminary Report
1. The arbitral panel shall deliver a preliminary report based on the submissions and arguments presented by the parties and on any information received in accordance with article 19.13 19.14 and unless the parties to the conflict agree otherwise.
2. Unless the Parties decide otherwise, the arbitral group shall present to the parties, within ninety (90) days after the meeting at which has been integrated, a preliminary report shall contain:
a) The findings of fact, including any resulting from a request pursuant to article 19.12 (5);
b) The determination as to whether the measure at issue is or would be inconsistent with the obligations of this Agreement or cause nullification or impairment in the sense of annex 19.03 determination or any other requested in the terms of reference; and
c) The Hague, when its recommendations for the resolution of the dispute.
3. The arbitrators shall explain its vote in writing on matters in respect of which there is unanimous decision.
4. Warring parties may submit written comments to the arbitration panel on the initial report within fourteen (14) days following the submission.
5. In this case and after examining the written comments, the arbitral group may on its own initiative or at the request of a combatant Party:
a) Any proceeding that it considers appropriate; and
b) Reconsider its preliminary report.
Article 19.16. Final Report
1. The arbitration panel shall notify the Parties to the conflict its final report, decided by majority and, where appropriate, the written reasoned opinions on issues where there is unanimous decision within a period of thirty (30) days of the presentation of the initial report unless the parties agree otherwise.
2. No arbitration panel may disclose in its initial report or its final report, the identity of the arbitrators who have voted with the majority or minority.
3. The final report shall be published within fifteen (15) days of its notification to the parties to the conflict, unless they agree otherwise.
Article 19.17. Implementation of the Final Report
1. The final report shall be binding for the parties involved in the terms and within the time it orders. the timeframe for implementing the final report shall not exceed six (6) months from the date on which the last of warring parties has been notified of the final report, unless they agree otherwise.
2. When the final report of the arbitral panel declares that the measure is inconsistent with this Treaty, the respondent Party shall refrain from executing the measure or repealed.
3. When the final report of the arbitral panel declares that the measure is a cause of nullification or impairment in the sense of annex 19.03, it shall determine the level of nullification or impairment and may suggest that the adjustments it considers mutually satisfactory for the parties involved.
Article 19.18. Suspension of Benefits
1. Unless the parties to the conflict have notified the Commission that it has complied with satisfaction of the same final report within ten (10) days of the expiration of the period specified in the final report the arbitral panel shall determine whether the responding party has complied with the report.
2. The complaining party may suspend the application to the responding party of benefits arising from this Agreement that have an effect equivalent to the benefits, if not the arbitral Group decides:
a) A measure that is inconsistent with the obligations of this Treaty and that the responding party does not comply with the final report within the timeframe determined by the arbitral group; or
b) A measure that is a cause of nullification or impairment in the sense of annex 19.03 and warring parties fail to reach a mutually satisfactory agreement on the dispute within the timeframe determined by the arbitral group.
3. The suspension of benefits shall last until the defendant complies with the final report or until the parties reach a mutually satisfactory agreement on the dispute, as the case may be. however, if the defendant is composed of two or more Parties and one of them complies with the final report or reached a mutually satisfactory agreement with the complaining party, it shall terminate the suspension of benefits in respect of that Party.
4. In considering the benefits to be suspended in accordance with this article:
a) The complaining party should first seek to suspend benefits in the same as that sector or sectors affected by the measure or other matter that the arbitration panel has found to be inconsistent with the obligations of this Agreement or that has been a cause of nullification or impairment in the sense of annex 19.03; and
b) If the complaining party considers that it is not practicable or effective to suspend benefits in the same sector or sectors may suspend benefits in other sectors.
5. Once the benefits have been suspended pursuant to this article, the parties - Upon written request of a Party, shall establish an arbitral group if necessary to determine if it has complied with the final report or if it is manifestly excessive the level of benefits that the complaining party has suspended the respondent party in accordance with this article. to the extent possible, the arbitral group will be integrated with the same arbitrators who heard the dispute.
6. The proceedings before the arbitral group established for the purposes of paragraph 5 shall be settled in accordance with the Model Rules of Procedure provided for in article 19.12 and shall present its final report within sixty (60) days after the meeting at which the arbitral group has been integrated, or at any other time that warring parties agree. in the event that the arbitral group shall be composed of the same arbitrators who heard the dispute shall present its final report within thirty (30) days following the submission of the request referred to in paragraph 5.
Section B. Internal Procedures and Private Commercial Dispute Resolution
Article 19.19. Interpretation of the Treaty Before Domestic Judicial and Administrative Authorities.
1. The Commission shall endeavour to agree as soon as possible, an adequate response non-binding interpretation or, when:
a) At the request of a Party which considers that warrants the opinion of the Committee, on a question of interpretation or application of this agreement arises in a judicial or administrative proceeding of the other party; or
b) A Party notifies the receipt of a request for an opinion on a question of interpretation or application of this Treaty in a judicial or administrative proceeding of that Party.
2. The Party in whose territory the court or administrative proceedings or response presented in the interpretation of the Commission, in accordance with the procedures of that forum.
3. If the Commission is unable to agree on the interpretation or response, any Party may submit its own views to the court or administrative proceedings in accordance with the procedures of that forum.
Article 19.20. Rights of Individuals
No Party may grant a right of action under its law against the other Party on the ground that a measure of the other party is inconsistent with this Treaty, in accordance with international law.
Article 19.21. Alternative Means of Dispute Settlement between Individuals
1. Each Party shall promote and facilitate the arbitration and other means of alternative for the settlement of international commercial disputes between private parties in the Free Trade Area.
2. To this end, each Party shall provide appropriate procedures to ensure observance of agreements to arbitrate which has ratified, and the recognition and enforcement of arbitral awards in such disputes.
3. The Commission shall establish an advisory committee on private commercial disputes comprising persons with expertise or experience in the resolution of private international commercial disputes. once established, the Committee shall report and general recommendations to the Commission on the existence, use and effectiveness of arbitration and other procedures for the resolution of disputes.
Annex 19.03 . Nullification and Impairment
1. A Party may have recourse to the dispute settlement mechanism of this chapter where as a result of the application of a measure that is not inconsistent with the Treaty, deemed to impair or nullify the benefits that could reasonably have expected to receive the application:
a) Part Two (trade in goods);
b) Part Three (Technical Barriers to Trade);
c) Chapter 11 (cross-border trade in services); or
d) Chapter 12 (air transport).
2. With respect to any measure subject to an exception under article General 20.02 (Exceptions), a party may not invoke:
a) Paragraph 1 (a) or (b) To the extent that the benefit arises from any provision relating to cross-border trade in services of Part Two (trade in goods) or of Part Three (Technical Barriers to Trade); or
b) Paragraph 1 (c).
3. To determine the elements of nullification and impairment, the parties may take into account the principles set out in the jurisprudence of paragraph 1 (b) of article XXIII of GATT 1994.
Chapter 20. Exceptions
Article 20.01. Definitions
For purposes of this chapter:
Tax convention means a convention for the avoidance of double taxation or other international agreement or arrangement taxation;
The Fund: international Monetary Fund;
Payments for current international transactions means payments for current international transactions as defined under the Articles of Agreement of the International Monetary Fund;
International capital transactions means international capital transactions as defined under the Articles of Agreement of the International Monetary Fund; and
Transfers means international transactions and related international transfers and payments.
Article 20.02. General Exceptions
1. Article XX of GATT 1994 and its interpretative notes are hereby incorporated into and made an integral part of this Agreement for purposes of:
a) Part Two (trade in goods), except to the extent that some of its provisions apply to services or investment;
b) Part Three (Technical Barriers to Trade), except to the extent that some of its provisions apply to services or investment;
c) Chapter 15 (Competition policy), to the extent that some of its provisions apply to goods; and
d) Chapter 16 (Government procurement), to the extent that some of its provisions apply to goods.
2. This Treaty shall be incorporated into and form an integral part thereof, subparagraphs (a), (b) and (c) of article XIV of the GATS, for purposes of:
a) Part Two (trade in goods), to the extent that some of its provisions apply to services;
b) Part Three (Technical Barriers to Trade);
c) Chapter 11 (Cross-border trade in services);
d) Chapter 12 (Air transport);
e) Chapter 13 (Telecommunications);
f) Chapter 14 (Temporary entry for business persons);
g) Chapter 15 (Competition policy), to the extent that some of its provisions apply to services; and
h) Chapter 16 (Government procurement), to the extent that some of its provisions apply to services.
Article 20.03. National Security
Nothing in this Treaty shall be construed as:
a) To require a party to furnish or allow access to information the disclosure of which it considers contrary to its essential security interests;
b) Prevent a Party from taking any action which it considers necessary to protect its essential security interests:
i) Relating to trade in arms, munitions and war materiel and trade operations and on goods, materials, technology and services undertaken directly or indirectly for the purpose of supplying a military establishment or other establishment of defence;
ii) Taken in time of war or other serious international tension or;
iii) With regard to the implementation of national policies or international agreements in the field of non-proliferation of nuclear weapons or other nuclear explosive devices; or
c) To prevent any Party from taking action in pursuance of its obligations under the United Nations Charter for the maintenance of international peace and security.
Article 20.04. Balance of Payments
1. Nothing in this Treaty shall be construed as preventing a party from maintaining or adopting measures that restrict transfers where the party faces serious difficulties in their balance of payments, or threat thereof, provided that such restrictions are consistent with this article.
2. As soon as practicable after a party to apply a measure under this article, in accordance with the provisions of its international obligations, the Party: