Article 235. Panel of Experts
1. Each Party may, 90 days after the delivery of a request for consultations under Article 234(2) of this Agreement, request that a Panel of Experts be convened to examine a matter that has not been satisfactorily addressed through government consultations.
2. The provisions of Sub-Section 1 (Arbitration procedure) and Sub-Section 3 (Common provisions), of Section 3 (Dispute settlement procedures), and of Article 261 of Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement, as well as the Rules of Procedure in Annex XVI to this Agreement and the Code of Conduct for Arbitrators and Mediators ("Code of Conduct") set out in Annex XVII to this Agreement shall apply, except as otherwise provided in this Article.
3. At its first meeting after the entry into force of this Agreement, the Trade and Sustainable Development Sub- Committee shall establish a list of at least 15 individuals who are willing and able to serve as experts in panel procedures. Each Party shall propose at least five individuals to serve as experts. The Parties shall also select at least five individuals who are not nationals of either Party who may serve as chairperson to the Panel of Experts. The Trade and Sustainable Development Sub- Committee shall ensure that the list is always maintained at this level.
4. The list referred to in paragraph 3 of this Article shall comprise individuals with specialised knowledge or expertise in law, labour or environmental issues addressed in this Chapter, or the resolution of disputes arising under international agreements. They shall be independent, serve in their individual capacities and not take instructions from any organisation or government with regard to issues related to the matter at stake, or be affiliated with the government of any Party, and shall comply with Annex XVII to this Agreement.
5. For matters arising under this Chapter, the Panel of Experts shall be composed of experts from the list referred to in paragraph 3 of this Article, in accordance with Article 241 of this Agreement and rule 8 of the Rules of Procedure set out in Annex XVI to this Agreement.
6. The Panel of Experts may seek information and advice from either Party, the domestic advisory group(s) or any other source it deems appropriate. In matters related to the respect of multilateral agreements as set out in Article 221 and 222 of this Agreement, the Panel of Experts should seek information and advice from the ILO or MEA bodies.
7. The Panel of Experts shall issue its report to the Parties, in accordance with the relevant procedures set out in Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement, setting out the findings of facts, the applicability of the relevant provisions and the basic rationale behind any findings and recommendations that it makes. The Parties shall make the report publicly available within 15 days of its issuance.
8. The Parties shall discuss appropriate measures to be implemented taking into account the Panel of Experts' report and recommendations. The Party concerned shall inform its advisory groups and the other Party of its decisions on any action or measure to be implemented no later than three months after the public release of the report. The follow-up to the report and the recommendations of the Panel of Experts shall be monitored by the Trade and Sustainable Development Sub-committee. The advisory bodies and the Joint Civil Society Dialogue Forum may submit observations to the Trade and Sustainable Development Sub-Committee in this regard.
Chapter 14. Dispute Settlement
Section 1. Objective and Scope
Article 236. Objective
The objective of this Chapter is to establish an effective and efficient mechanism for avoiding and settling any dispute between the Parties concerning the interpretation and application of Title IV (Trade and Trade-related Matters) of this Agreement with a view to arriving at, where possible, a mutually agreed solution.
Article 237. Scope of Application
This Chapter shall apply with respect to any dispute concerning the interpretation and application of the provisions of Title IV (Trade and Trade-related Matters) of this Agreement, except as otherwise provided.
Section 2. Consultations and Mediation
Article 238. Consultations
1. The Parties shall endeavour to resolve any dispute referred to in Article 237 of this Agreement 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 to the other Party, copied to the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement, giving reasons for the request, including by identifying the measure at issue and the provisions referred to in Article 237 of this Agreement that it considers applicable.
3. Consultations shall be held within 30 days of the date of receipt of the request and take place, unless the Parties agree otherwise, in the territory of the Party to which the request is made. The consultations shall be deemed concluded within 30 days of the date of receipt of the request, unless both Parties agree to continue consultations. Consultations, in particular all information disclosed and positions taken by the Parties during the consultations, shall be confidential, and without prejudice to the rights of either Party in any further proceedings.
4. Consultations on matters of urgency, including those regarding perishable goods or seasonal goods or services shall be held within 15 days of the date of receipt of the request by the requested Party, and shall be deemed concluded within those 15 days unless both Parties agree to continue consultations.
5. If the Party to which the request is made does not respond to the request for consultations within ten days of the date of its receipt, or if consultations are not held within the timeframes laid down in paragraph 3 or in paragraph 4 of this Article 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 240 of this Agreement.
6. During the consultations each Party shall deliver sufficient factual information, so as to allow a complete examination of the manner in which the measure at issue could affect the operation and the application of this Agreement.
7. Where consultations concern the transport of energy goods through networks and one Party views the resolution of the dispute as urgent because of an interruption, in full or in part, of transport of natural gas, oil or electricity between the Parties the consultations shall be held within three days of the date of submission of the request, and shall be deemed concluded three days after the date of submission of the request unless both Parties agree to continue consultations.
Article 239. Mediation
Any Party may request the other Party to enter into a mediation procedure pursuant to Annex XV to this Agreement with respect to any measure adversely affecting its trade interests.
Section 3. Dispute Settlement Procedures
Subsection 1. Arbitration Procedure
Article 240. Initiation of the Arbitration Procedure
1. Where the Parties have failed to resolve the dispute by recourse to consultations as provided for in Article 238 of this Agreement, the Party that sought consultations may request the establishment of an arbitration panel in accordance with this Article.
2. The request for the establishment of an arbitration panel shall be made in writing to the other Party and the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement. The complaining Party shall identify in its request the measure at issue, and it shall explain how such measure is inconsistent with the provisions referred to in Article 237 of this Agreement in a manner sufficient to present the legal basis for the complaint clearly.
Article 241. Establishment of the Arbitration Panel
1. An arbitration panel shall be composed of three arbitrators.
2. Upon receipt of the request for the establishment of an arbitration panel, the Parties shall consult promptly and shall endeavour to reach an agreement on the composition of the arbitration panel. Notwithstanding paragraphs 3 and 4 of this Article, the Parties may at any time before the establishment of the arbitration panel decide to compose the arbitration panel by mutual agreement.
3. Either Party may request to apply the procedure for panel composition laid down in this paragraph after five days from the request for the establishment of a panel, if no agreement has been found on the composition of the arbitration panel. Each Party may appoint an arbitrator from the list established under Article 259 of this Agreement within ten days from the date of request to apply the procedure in this paragraph. If any of the Parties fails to appoint the arbitrator, the arbitrator shall, upon request of the other Party, be selected by lot by the chair or co-chairs of the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement, or their delegates, from the sub-list of that Party contained in the list established under Article 259 of this Agreement. Unless the Parties have reached an agreement concerning the chairperson of the arbitration panel, upon request of any of the Parties, the chair or co- chairs of the Strategic Partnership and Cooperation Forum in Trade configuration or their delegates, shall select by lot the chairperson of the arbitration panel from the sub-list of chairpersons contained in the list established under Article 259 of this Agreement.
4. In the event of selection by lot of one or more arbitrators, the draw shall take place within five days of the request to select by lot referred to in paragraph 3.
5. The date of establishment of the arbitration panel shall be the date on which the last of the three selected arbitrators accepted the appointment in accordance with the Rules of Procedure in Annex XVI to this Agreement.
6. Should any of the lists provided for in Article 259 of this Agreement not be established or not contain sufficient names at the time a request is made pursuant to paragraph 3, the arbitrators shall be drawn by lot. The draw shall take place from the individuals who have been formally proposed by each of the Parties or, in case one Party has failed to make such proposal, the draw shall be made from the individuals proposed by the other Party.
7. Unless the Parties agree otherwise, in respect of a dispute concerning Chapter 11 (Trade-related energy) of Title IV (Trade and Trade-related Matters) of this Agreement which a Party considers to be urgent because of an interruption, in full or in part, of any transport of natural gas, oil, or electricity or a threat thereof between the Parties, the procedure of selection by lot envisaged in paragraph 3 of this Article shall apply without recourse to the first sentence of paragraph 2 of this Article or to the other steps provided for in paragraph 3 of this Article, and the period referred to in paragraph 4 of this Article shall be two days.
Article 242. Preliminary Ruling on Urgency
If a Party so requests, the arbitration panel shall, within ten days of the date of its establishment, give a preliminary ruling on whether it deems the case to be urgent.
Article 243. Arbitration Panel Report
1. The arbitration panel shall notify an interim report to the Parties setting out the findings of fact, the applicability of relevant provisions and the basic rationale behind any findings and recommendations that it makes, no later than 90 days after the date of establishment of the arbitration panel. Where it considers that this deadline cannot be met, the chairperson of the arbitration panel shall notify the Parties and the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement, in writing, stating the reasons for the delay and the date on which the panel plans to notify its interim report. Under no circumstances should the interim report be notified later than 120 days after the date of establishment of the arbitration panel. The interim report shall not be made public.
2. A Party may submit a written request to the arbitration panel to review precise aspects of the interim report within 14 days of its notification.
3. In cases of urgency, including those involving perishable goods or seasonal goods or services, the arbitration panel shall make every effort to notify its interim report within 45 days and, in any case, no later than 60 days after the date of establishment of the arbitration panel. A Party may submit a written request to the arbitration panel to review precise aspects of the interim report, within 7 days of the notification of the interim report.
4. After considering any written comments by the Parties on the interim report, the arbitration panel may modify its report and make any further examination it considers appropriate. The findings of the final panel ruling shall include a sufficient discussion of the arguments made at the interim review stage, and shall answer clearly to the questions and observations of the two Parties.
5. In respect of a dispute concerning Chapter 11 (Trade-related energy) of Title IV (Trade and Trade-related Matters) of this Agreement which a Party considers to be urgent because of an interruption, in full or in part, of any transport of natural gas, oil or electricity or a threat thereof, between the Parties, the interim report shall be notified 20 days after the date of establishment of the arbitration panel, and any request pursuant to paragraph 2 of this Article shall be made within five days of the notification of the written report. The arbitration panel may also decide to dispense with the interim report.
Article 244. Conciliation for Urgent Energy Disputes
1. In respect of a dispute concerning Chapter 11 (Trade-related energy) of Title IV (Trade and Trade-related Matters) of this Agreement which a Party considers to be urgent because of an interruption, in full or in part, of any transport of natural gas, oil, or electricity or a threat thereof between the Parties, either Party may request the chairperson of the arbitration panel to act as a conciliator concerning any matter related to the dispute by making a request to the notified panel.
2. The conciliator shall seek an agreed resolution of the dispute or seek to agree a procedure to achieve such resolution. If within 15 days of his/her appointment he/she has failed to secure such agreement, he/she shall recommend a resolution to the dispute or a procedure to achieve such resolution and shall decide on the terms and conditions to be observed from a date which he/she shall specify until the dispute is resolved.
3. The Parties and the entities under their control or jurisdiction shall respect recommendations made under paragraph 2 on the terms and conditions for three months following the conciliator's decision or until resolution of the dispute, whichever is earlier.
4. The conciliator shall respect the Code of Conduct set out in Annex XVII to this Agreement.
Article 245. Notification of the Ruling of the Arbitration Panel
1. The arbitration panel shall notify its final ruling to the Parties and to the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement, within 120 days from the date of establishment of the arbitration panel. Where it considers that this deadline cannot be met, the chairperson of the arbitration panel shall notify the Parties and the Strategic Partnership and Cooperation Forum in Trade configuration in writing, stating the reasons for the delay and the date on which the panel plans to notify its ruling. Under no circumstances should the ruling be notified later than 150 days after the date of establishment of the arbitration panel.
2. In cases of urgency, including those involving perishable goods or seasonal goods or services, the arbitration panel shall make every effort to notify its ruling within 60 days from the date of its establishment. Under no circumstances should the ruling be notified later than 75 days after the date of its establishment.
3. In respect of a dispute concerning Chapter 11 (Trade-related Energy) of Title IV (Trade and Trade-related Matters) of this Agreement which a Party considers to be urgent because of an interruption, in full or in part, of any transport of natural gas, oil or electricity or a threat thereof between the Parties, the arbitration panel shall notify its ruling within 40 days from the date of its establishment.
Subsection 2. Compliance
Article 246. Compliance with the Arbitration Panel Ruling
The Party complained against shall take any measure necessary to comply promptly and in good faith with the arbitration panel ruling.
Article 247. Reasonable Period of Time for Compliance
1. If immediate compliance is not possible, the Parties shall endeavour to agree on the period of time to comply with the ruling. In such a case, the Party complained against shall, no later than 30 days after the receipt of the notification of the arbitration panel ruling, notify the complaining Party and the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement, of the time it will require for compliance ("reasonable period of time").
2. â If there is disagreement between the Parties on the reasonable period of time to comply with the arbitration panel ruling, the complaining Party shall, within 20 days of the date of receipt of the notification made under paragraph 1 by the Party complained against, request in writing the original arbitration panel to determine the length of the reasonable period of time. Such request shall be notified simultaneously to the other Party and to the Strategic Partnership and Cooperation Forum in Trade configuration. The original arbitration panel shall notify its ruling to the Parties and to the Strategic Partnership and Cooperation Forum in Trade configuration within 20 days from the date of submission of the request.
3. The Party complained against shall inform the complaining Party in writing of its progress to comply with the arbitration panel ruling at least one month before the expiry of the reasonable period of time.
4. The reasonable period of time may be extended by mutual agreement of the Parties.
Article 248. Review of Any Measure Taken to Comply with the Arbitration Panel Ruling
1. The Party complained against shall notify the complaining Party and the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement, before the end of the reasonable period of time of any measure that it has taken to comply with the arbitration panel ruling.
2. In the event that there is disagreement between the Parties concerning the existence or the consistency of any measure under paragraph 1, taken to comply with the provisions referred to in Article 237 of this Agreement, the complaining Party may request in writing the original arbitration panel to rule on the matter. Such request shall identify the specific measure at issue and explain how such measure is inconsistent with the provisions referred to in Article 237 of this Agreement, in a manner sufficient to present the legal basis for the complaint clearly. The original arbitration panel shall notify its ruling to the Parties and to the Strategic Partnership and Cooperation Forum in Trade configuration within 45 days of the date of submission of the request.
Article 249. Temporary Remedies In Case of Non-compliance
1. If the Party complained against fails to notify any measure taken to comply with the arbitration panel ruling before the expiry of the reasonable period of time, or if the arbitration panel rules that no measure taken to comply exists or that the measure notified under Article 248(1) of this Agreement, is inconsistent with that Party's obligations under the provisions referred to in Article 237 of this Agreement, the Party complained against shall, if so requested by the complaining Party and after consultations with that Party, present an offer for temporary compensation.
2. If the complaining Party decides not to request an offer for temporary compensation under paragraph 1 of this Article, or, in case such request is made, if no agreement on compensation is reached within 30 days after the end of the reasonable period of time or of the notification of the arbitration panel ruling under Article 248 of this Agreement that no measure taken to comply exists or that a measure taken to comply is inconsistent with the provisions referred to in Article 237 of this Agreement, the complaining Party shall be entitled, upon notification to the other Party and to the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement, to suspend concessions or obligations arising from any provision referred to in Article 237 of this
Agreement, at an adequate level, equivalent to the nullification or impairment caused by the violation. The notification shall specify the level of suspension of concessions or obligations. The complaining Party may implement the suspension at any moment after the expiry of ten days after the date of receipt of the notification by the Party complained against, unless the Party complained against has requested arbitration under paragraph 4 of this Article.
3. In suspending concessions or other obligations, the complaining Party may choose to increase its tariff rates to the level applied to other WTO Members on a volume of trade to be determined in such a way that the volume of trade multiplied by the increase of the tariff rates equals the value of the nullification or impairment caused by the violation.
4. If the Party complained against considers that the level of suspension is not equivalent to the nullification or impairment caused by the violation, it may request in writing the original arbitration panel to rule on the matter. Such request shall be notified to the complaining Party and to the Strategic Partnership and Cooperation Forum in Trade configuration before the expiry of the ten day period referred to in paragraph 2. The original arbitration panel shall notify its ruling on the level of the suspension of concessions or other obligations to the Parties and to the Strategic Partnership and Cooperation Forum in Trade configuration within 30 days of the date of submission of the request. Concessions or other obligations shall not be suspended until the original arbitration panel has notified its ruling, and any suspension shall be consistent with the arbitration panel ruling.
5. The suspension of concessions or other obligations and the compensation foreseen in this Article shall be temporary and shall not be applied after:
(a) the Parties have reached a mutually agreed solution pursuant to Article 254 of this Agreement; or
(b) the Parties have agreed that the measure notified under Article 248(1) of this Agreement brings the Party complained against into conformity with the provisions referred to in Article 237 of this Agreement; or
(c) any measure found to be inconsistent with the provisions referred to in Article 237 has been withdrawn or amended so as to bring it into conformity with those provisions, as ruled under Article 248(2) of this Agreement.
Article 250. Remedies for Urgent Energy Disputes
1. In respect of a dispute concerning Chapter 11 (Trade-related Energy) of Title IV (Trade and Trade-related Matters) of this Agreement which a Party considers to be urgent because of an interruption, in full or in part, of any transport of natural gas, oil, or electricity or a threat thereof between the Parties, the provisions of this Article on remedies shall apply.
2. By way of derogation from Articles 247, 248 and 249 of this Agreement, the complaining Party may suspend concessions or other obligations arising under Title IV (Trade and Trade-related Matters) of this Agreement to an adequate level, equivalent to the nullification or impairment caused by the Party failing to bring itself into compliance with the arbitration panel ruling within 15 days of its notification. That suspension may take effect immediately. Such suspension may be maintained as long as the Party complained against has not complied with the arbitration panel ruling.
3. Should the Party complained against dispute the existence of a failure to comply or the level of the suspension due to the failure to comply, it may initiate proceedings under Articles 249(4) and 251 of this Agreement which shall be examined expeditiously. The complaining Party shall be required to remove or adjust the suspension only once the Panel has ruled on the matter, and may maintain the suspension pending the proceedings.
Article 251. Review of Any Measure Taken to Comply after the Adoption of Temporary Remedies for Non-compliance
1. The Party complained against shall notify the complaining Party and the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement, of the measure it has taken to comply with the ruling of the arbitration panel following the suspension of concessions or other obligations or following the application of temporary compensation, as the case may be. With the exception of cases under paragraph 2 of this Article, the complaining Party shall terminate the suspension of concessions or other obligations within 30 days from the receipt of the notification. In cases where compensation has been applied, and with the exception of cases under paragraph 2 of this Article, the Party complained against may terminate the application of such compensation within 30 days from its notification that it has complied with the ruling of the arbitration panel.
2. If the Parties do not reach an agreement on whether the notified measure brings the Party complained against into conformity with the provisions referred to in Article 237 of this Agreement, within 30 days of the date of receipt of the notification, the complaining Party shall request in writing the original arbitration panel to rule on the matter. Such a request shall be notified simultaneously to the other Party and to the Strategic Partnership and Cooperation Forum in Trade configuration. The arbitration panel ruling shall be notified to the Parties and to the Strategic Partnership and Cooperation Forum in Trade configuration within 45 days of the date of submission of the request. If the arbitration panel rules that the measure taken comply with the provisions referred to in Article 237 of this Agreement, the suspension of concessions or other obligations or compensation, as the case may be, shall be terminated. Where relevant, the complaining Party shall adapt the level of suspension of concessions or other obligations to the level determined by the arbitration panel.
Article 252. Replacement of Arbitrators
If in an arbitration proceeding under this Chapter, the original panel, or some of its members, are unable to participate, withdraw, or need to be replaced because they do not comply with the requirements of the Code of Conduct set out in Annex XVII to this Agreement, the procedure set out in Article 241 of this Agreement shall apply. The time-limit for the notification of the arbitration panel ruling shall be extended by 20 days with the exception of the urgent disputes referred to in paragraph 7 of Article 241, for which the time-limit shall be extended by five days.
Subsection 3. Common Provisions
Article 253. Suspension and Termination of Arbitration and Compliance Procedures
The arbitration panel shall, at the written request of both Parties, suspend its work at any time for a period agreed by the Parties not exceeding 12 consecutive months. The arbitration panel shall resume its work before the end of that period at the written request of both Parties or at the end of this period at the written request of any Party. The requesting Party shall inform the chair or co-chairs of the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement, and the other Party, accordingly. If a Party does not request the resumption of the arbitration panel's work at the expiry of the agreed suspension period, the procedure shall be terminated. The suspension and termination of the arbitration panel's work are without prejudice to the rights of either Party in another proceeding subject to Article 260 of this Agreement.
Article 254. Mutually Agreed Solution
The Parties may reach a mutually agreed solution to a dispute under Title IV (Trade and Trade-related Matters) of this Agreement at any time. They shall jointly notify the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement, and the chairperson of the arbitration panel, where applicable, of any such solution. If the solution requires approval pursuant to the relevant domestic procedures of either Party, the notification shall refer to this requirement, and the dispute settlement procedure shall be suspended. If such approval is not required, or if the completion of any such domestic procedures is notified, the dispute settlement procedure shall be terminated.
Article 255. Rules of Procedure
1. Dispute settlement procedures under this Chapter shall be governed by the Rules of Procedure set out in Annex XVI to this Agreement and by the Code of Conduct set out in Annex XVII to this Agreement.
2. Any hearing of the arbitration panel shall be open to the public unless otherwise provided for in the Rules of Procedure.
Article 256. Information and Technical Advice
At the request of a Party, or upon its own initiative, the arbitration panel may obtain any information it deems appropriate for the arbitration panel proceeding from any source, including the Parties involved in the dispute. The arbitration panel also has the right to seek the opinion of experts as it deems appropriate. The arbitration panel shall consult the Parties before choosing such experts. Natural or legal persons established in the territory of a Party may submit amicus curiae briefs to the arbitration panel in accordance with the Rules of Procedure. Any information obtained under this Article shall be disclosed to each of the Parties and submitted for their comments.
Article 257. Rules of Interpretation
The arbitration panel shall interpret the provisions referred to in Article 237 of this Agreement, in accordance with customary rules of interpretation of public international law, including those codified in the Vienna Convention on the Law of Treaties of 1969. The panel shall also take into account relevant interpretations established in reports of panels and the Appellate Body adopted by the WTO Dispute Settlement Body (DSB). The rulings of the arbitration panel cannot add to or diminish the rights and obligations of the Parties provided under this Agreement.
Article 258. Decisions and Rulings of the Arbitration Panel
1. The arbitration panel shall make every effort to take any decision by consensus. Where, nevertheless, a decision cannot be arrived at by consensus, the matter at issue shall be decided by majority vote. The deliberations of the panel shall be confidential and dissenting opinions shall not be issued.
2. The rulings of the arbitration panel shall be unconditionally accepted by the Parties. They shall not create any rights or obligations for natural or legal persons. The rulings shall set out the findings of fact, the applicability of the relevant provisions referred to in Article 237 of this Agreement and the basic rationale behind any findings and conclusions that they make. The Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement, shall make the rulings of the arbitration panel publicly available in their entirety within ten days of their notification, unless it decides not to do so in order to ensure the confidentiality of information that is designated as confidential by the Party that provided it, on the basis of its legislation.
Section 4. General Provisions
Article 259. Lists of Arbitrators
1. The Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement, shall, no later than six months after the entry into force of this Agreement, establish a list of at least 15 individuals who are willing and able to serve as arbitrators. The list shall be composed of three sub-lists: one sub-list for each Party and one sub-list of individuals that are not nationals of either Party and who may serve as chairperson to the arbitration panel. Each sub-list shall include at least five individuals. The Strategic Partnership and Cooperation Forum in Trade configuration shall ensure that the list is always maintained at that level.
2. Arbitrators shall have specialised knowledge and experience of law and international trade. They shall be independent, serve in their individual capacities and not take instructions from any organisation or government, or be affiliated with the government of any of the Parties, and shall comply with the Code of Conduct set out in Annex XVII to this Agreement.
3. The Strategic Partnership and Cooperation Forum in Trade configuration may establish additional lists of 12 individuals with knowledge and experience in specific sectors covered by this Agreement. Subject to the agreement of the Parties, such additional lists shall be used to compose the arbitration panel in accordance with the procedure set out in Article 241 of this Agreement.
Article 260. Relation with WTO Obligations
1. Recourse to the dispute settlement provisions of this Chapter shall be without prejudice to any action in the WTO framework, including dispute settlement proceedings.
2. However, where a Party has, with regard to a particular measure, initiated a dispute settlement proceeding, cither under this Chapter or under the WTO Agreement, it may not institute a dispute settlement proceeding regarding the same measure in the other forum until the first proceeding has been concluded. In addition, a Party shall not seek redress of an obligation which is identical under this Agreement and under the WTO Agreement in the two fora. In such case, once a dispute settlement proceeding has been initiated, the Parties shall use the selected forum to the exclusion of the other, unless the forum selected fails for procedural or jurisdictional reasons to make findings on the claim secking redress of that obligation.
3. For the purposes of paragraph 2 of this Article:
(a) dispute settlement proceedings under the WTO Agreement are deemed to be initiated by a Party's request for the establishment of a panel under Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes contained in Annex 2 to the WTO Agreement (DSU) and are deemed to be concluded when the DSB adopts that panel's report, and the Appellate Body's report as the case may be, under Articles 16 and 17.14 of the DSU; and
(b) dispute settlement proceedings under this Chapter are deemed to be initiated by a Party's request for the establishment of an arbitration panel under Article 240 of this Agreement and are deemed to be concluded when the arbitration panel notifies its ruling under Article 245 of this Agreement to the Parties and to the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement.
4. Nothing in this Agreement shall preclude a Party from implementing the suspension of concessions or other obligations authorised by the DSB. The WTO Agreement shall not be invoked to preclude a Party from suspending concessions or other obligations under this Chapter.
Article 261. Time-limits
1. All time-limits laid down in this Chapter, including the time-limits for an arbitration panel to notify its ruling, shall be counted in calendar days from the day following the act or fact to which they refer, unless otherwise specified. 2. Any time-limit referred to in this Chapter may be modified by mutual agreement of the Parties to the dispute. The arbitration panel may at any time propose to the Parties to modify any time-limit referred to in this Chapter, stating the reasons for that proposal.
Title V . Economic Cooperation
Chapter 1. Economic Dialogue
Article 262.
1. The UK and Georgia shall facilitate the process of economic reform by improving the understanding of the fundamentals of their respective economies andthe formulation and implementation of economic policies.
2. The Parties shall strive to ensure sound macroeconomic policies.
Article 263.
To that end, the Parties agree to conduct a regular economic dialogue aimed at:
(a) exchanging information on macroeconomic trends and policies, as well as on structural reforms, including strategies for economic development;
(b) exchanging expertise and best practices in areas such as public finance, monetary and exchange rate policy frame- works, financial sector policy and economic statistics;
(c) reviewing status of bilateral cooperation in the economic, financial and statistical fields.
Chapter 2. Management of Public Finances and Financial Control
Article 264.
The Parties shall cooperate in the area of public internal financial control (PIFC) and external audit with the following objectives:
(a) further development and implementation of the PIFC system based on the principle of managerial accountability, and including a functionally independent internal audit function in the entire public sector, by means of harmonisation with generally accepted international standards and methodologies, on the basis of the PIFC policy paper approved by the Government of Georgia,
(b) to reflect in the PIFC policy paper if and under which conditions a financial inspection system may be implemented, in which case such function will be complaint driven and will complement but not duplicate the internal audit function;
(c) effective cooperation between the actors defined by the PIFC policy paper to foster the development of governance;
(d) supporting the Central Harmonisation Unit for PIFC and strengthening its competences;
(e) further strengthening of the State Audit Office of Georgia as a supreme audit institution of Georgia in terms of its independence, organisational and audit capacity, financial and human resources and implementation of internationally accepted external audit (INTOSAI) standards by the supreme audit institution; and
(f} exchange of information, experiences and good practices through inter alia personnel exchange and joint training in these fields.
Chapter 3. Taxation
Article 265.
The Parties shall cooperate to enhance good governance in the tax area, with a view to the further improvement of economic relations, trade, investment and fair competition.
Article 266.
With reference to Article 265 of this Agreement, the Parties recognise and commit themselves to implement the principles of good governance in the tax area, i.e. the
principles of transparency, exchange of information and fair tax competition. To that effect, the Parties will improve international cooperation in the tax area, facilitate the collection of legitimate tax revenues, and develop measures for the effective implementation of the above mentioned principles.
Article 267.
The Parties shall strive to enhance cooperation and sharing of experiences in combating tax fraud, in particular carousel fraud.
Article 268.
The Parties shall develop their cooperation in counteracting and fighting fraud and smuggling of excisable products. To that end, the Parties will look to strengthen their cooperation within the regional context.
Article 269.
A regular dialogue may take place on the issues covered by this Chapter.
Chapter 4. Statistics
Article 270.
The Parties shall develop and strengthen their cooperation on statistical issues, thereby contributing to the long-term objective of providing timely, internationally comparable and reliable statistical data. It is expected that a sustainable, efficient and professionally independent national statistical system shall produce information relevant for citizens, businesses and decision-makers in Georgia and in the UK, enabling them to take informed decisions on this basis. The national statistical system should respect the UN Fundamental Principles of Official Statistics, taking into account international standards and best practice, in order to align the national statistical system with internationally comparable norms and standards.