(i) Three months have elapsed from the date the award was rendered and no disputing party has commenced a proceeding to revise, set aside or annul the award, or
(ii) A court has dismissed an application to revise, set aside or annul the award and there is no further appeal, or
(iii) A court has allowed an application to revise, set aside or annul the award and the proceeding has been completed and there is not further appeal.
(9) If a disputing Contracting Party fails to abide by or comply with a final award, on delivery of a request by a Contracting Party whose investor was a party to the arbitration, an arbitral tribunal under Part Two of this Chapter may be established. The requesting Contracting Party may seek in such proceedings:
(a) A determination that the failure to abide by or comply with the final award is inconsistent with the obligations of this Agreement, and
(b) A recommendation that the Contracting Party abide by or comply with the final award.
Part Two: Settlement of Disputes between the Contracting Parties
Article 18. Scope, Consultations, Mediation and Conciliation
Disputes between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible, be settled amicably or through consultations, mediation or conciliation.
Article 19. Initiation of Proceedings
(1) At the request of either Contracting Party, a dispute concerning the interpretation or application of this Agreement may be submitted to an arbitral tribunal for decision not earlier than four months after such request has been notified to the other Contracting Party.
(2) A Contracting Party shall not initiate proceedings under this Part for a dispute regarding the infringement of rights of an investor, unless the other Contracting Party has failed to abide by or comply with the award rendered in a dispute that an investor has submitted to proceedings under Part One of this Chapter. In that case, the arbitral tribunal established under this Part, on delivery of a request by a Contracting Party whose investor was a party to the dispute, may award:
(a) A declaration that the failure to abide by or comply with the final award is in contravention of the obligations of the other Contracting Party under this Agreement; and
(b) A recommendation that the other Contracting Party abide by or comply with the final award.
Article 20. Formation and Venue of the Arbitral Tribunal
(1) Such arbitral tribunal shall be constituted ad hoc as follows: each Contracting Party shall appoint one member and these two members shall agree upon a national of a third State as their chairman. Such members shall be appointed within two months from the date one Contracting Party has informed the other Contracting Party that it intends to submit the dispute to an arbitral tribunal, the chairman of which shall be appointed within two further months.
(2) If the periods specified in paragraph (1) are not observed, either Contracting Party may, in the absence of any other relevant arrangement, invite the President of the International Court of Justice to make the necessary appointments. If the President of the International Court of Justice is a national of either of the Contracting Parties or if he is otherwise prevented from discharging the said function, the Vice-President or, in case of his inability, the member of the International Court of Justice next in seniority should be invited under the same conditions to make the necessary appointments.
(3) Members of an arbitral tribunal shall be independent and impartial in their work and have experience in international law and investment matters.
(4) The Venue of the arbitral tribunal shall be the country of residence of the chairman of the arbitral tribunal.
Article 21. Applicable Law
The arbitral tribunal will decide disputes in accordance with this Agreement and the applicable rules and principles of international law.
Article 22. Costs
Each Contracting Party shall pay the cost of its representation in the proceedings. The cost of the arbitral tribunal shall be paid for equally by the Contracting Parties, unless the tribunal directs that they be shared differently.
Chapter Three: Final Provisions
Article 23. Exclusions
The disputes settlement provisions of Chapter Two, shall not apply to the resolutions adopted by a Contracting Party which, for national security reasons, prohibit or restrict the acquisition of an investment in its territory, owned or controlled by its nationals, by investors of the other Contracting Party, according to the legislation of each Contracting Party.
Article 24. Application of the Agreement
This Agreement shall apply to investments of investors of one Contracting Party, prior to its entry into force, in accordance with the laws and regulations of the other Contracting Party in its territory. However, it shall not apply to disputes arising before the entry into force of this Agreement.
Article 25. Consultations
Each Contracting Party may propose to the other Contracting Party consultations on any matter relating to this Agreement. These consultations shall be held at a place and at a time agreed upon the Contracting Parties.
Article 26. Entry Into Force, Duration and Termination
(1) The Contracting Parties shall notify each other in writing on the compliance with their constitutional requirements in relation to the approval and entry into force of this Agreement.
(2) This Agreement shall enter into force thirty (30) days after the date of the final notification, through the diplomatic channels used by both Contracting Parties to notify the fulfilment of the requirements referred to in paragraph (1).
(3) This Agreement shall remain in force for a period of ten (10) years, which shall be extended for equal periods of time, unless either of the Contracting Parties gives to the other Contracting Party written notice of its intention to terminate the Agreement, through diplomatic channels, with twelve (12) months in advance, after the initial period of ten (10) years has elapsed, or after this period, at any time.
(4) The termination of this Agreement shall not affect the investments made during its validity, and its provisions shall continue to be effective with respect to such investments for a period of ten (10) years after the date of termination.
(5) This Agreement may be modified by mutual consent of the Contracting Parties and the agreed modification shall come into effect in conformity with the procedures established in paragraph (2).
Conclusion
DONE at................................................., in..............................................., in duplicate, in the Spanish, Icelandic and English languages, each text being equally authentic. In case of divergence of interpretation, the English text shall prevail.
For the Government of the United Mexican States:
For the Government of the Republic of Iceland: