Article 19.05. Committees
1. The Commission may create Committees other than those set out in annex 1905.
2. Each committee shall have the following functions:
a) To monitor the implementation of the chapters of this treaty within its competence;
b) Hear matters referred to it by a Party which considers that an existing or proposed measure of the other party affects the effective implementation of any commitment within chapters of this Treaty falling within its competence;
c) Seek technical reports to the competent authorities and to take the necessary steps to help resolve the matter;
d) The Commission to evaluate and recommend proposals for amendment or modification, in addition to the provisions of chapters of this treaty within its competence;
e) The Commission to propose the review of measures in force or in a Party deems to be inconsistent with the obligations of this Agreement or cause nullification or impairment in the sense of nullification and impairment (annex 20); and
f) Comply with the other tasks entrusted to it by the Commission under the provisions of this Agreement and other instruments deriving therefrom.
3. The Commission and the Sub-Commission shall supervise the work of all committees created or established under this Treaty.
4. Each committee may establish its own rules and procedures, which shall meet at the request of either party or the Commission.
Article 19.06. Subcommittees
1. For the purpose of delegate its responsibilities and permanently only for purposes of specific provisions under its jurisdiction, the Committee may establish one or more Sub-Committees shall supervise their work. Each sub-committee shall have the same functions as a Committee on matters assigned to it.
2. Similarly, each sub-committee shall report to the Committee has established on the fulfilment of its mandate.
3. The rules and procedures of a sub-committee may be established by the Committee itself that established it. The Sub-Committee shall meet at the request of either party or the relevant committee.
Article 19.07. Expert Groups
1. Notwithstanding article 19.01 (3) (a), a committee or sub-committee may also create Adhoc Expert groups, with the object of making the technical studies as it deems necessary for the performance of its duties, shall supervise their work. The Group
Experts shall comply strictly with which is entrusted with the deadlines. The Panel of Experts shall be reported to the Committee or Sub-Committee that created it.
2. The rules and procedures of a group of experts may be established by the Committee or Sub-Committee that created it.
Chapter 20. DISPUTE SETTLEMENT
Section A. Dispute Resolution
Article 20.01. Definitions
For purposes of this chapter:
Consultant Party: any Party that conducts consultations pursuant to Article 20.06;
Disputing party: the complaining Party or the Party complained against;
Disputing Parties: the complaining Party and the Party complained against;
Defendant Party: the party against whom a claim is made, which may be composed of one or more Parties; and
Claiming party: the party that makes a claim, which may be composed of one or more Parties.
Article 20.02. General Provisions
1. If the parties shall endeavour to agree on the interpretation and application of this Treaty and through cooperation and consultations shall endeavour to reach a mutually satisfactory resolution of any matter that might affect its operation.
2. All solutions on matters arising under the provisions of this chapter shall be consistent with this Treaty and shall not impair or nullify the benefits arising from the same to the parties, nor shall place obstacles to the achievement of the objectives of the Treaty.
3. The mutually satisfactory solutions reached between warring parties on matters arising under the provisions of this chapter shall be notified to the Commission within a period of fifteen (15) days of the Agreement.
Article 20.03. Scope
Except as otherwise provided in this Treaty, the procedure of this chapter shall apply:
a) To the avoidance or settlement of disputes between all the parties concerning the interpretation or application of this treaty; or
b) Where a Party considers that an existing or proposed measure of the other party is or would be inconsistent with the obligations of this Treaty or would cause nullification or impairment in the sense of annex 20.
Article 20.04. Election of the Fora
1. Disputes arising under the provisions of this Treaty and under the WTO agreement or agreements negotiated in accordance with the latter may be settled in either forum at the discretion of the complaining party.
2. When a Party has requested the establishment of an arbitral panel under Article 2008, or has requested the establishment of a Panel under Article 6 of the Understanding, the Forum selected in accordance with paragraph 1 is exclusive.
Article 20.05. Cases of Urgency
1. In cases of urgency including those cases referred to in paragraphs 2 and 3, the warring parties and the arbitral groups shall make every effort to accelerate the proceedings.
2. In cases of perishable agricultural goods, fish and fish products that are perishable:
a) Consulting a Party may request in writing that the Commission meet whenever an issue is not resolved in accordance with article 20.06 within fifteen (15) days of the delivery of the request for consultations; and
b) The Party that has requested the intervention of the Commission under article 2007 may request in writing, the establishment of an arbitral group when the issue has not been resolved within fifteen (15) days after the meeting of the Commission or, if it has not been made within fifteen (15) days after the delivery of the request for a meeting of the Commission.
3. In cases of urgency other than those referred to in paragraph 2, the Parties shall, as far as possible, to halve the periods specified in articles 2007 and 2008 to request the Commission and the establishment of an arbitral group respectively.
Article 20.06. Consultations
1. Any Party may request in writing to the other party holding consultations 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 20.
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. Through consultations under this article and the provisions referred to in article 4 (1904) (General provisions), the Parties shall make every effort to reach a mutually satisfactory resolution of any matter. To this end, the parties are 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 20.07. Intervention of 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 20.06 within thirty (30) days after the delivery of the request for consultations, unless the parties agree to another deadline by consensus; or
b) The Party to which it was addressed to the request for consultations had not replied 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 4 (1904) (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 other alternative means of dispute settlement; or
c) Make recommendations.
5. Unless it decides otherwise, the Commission shall carry forward two (2) 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 20.08. Request for Integration of the Arbitration Panel
1. The Party that has requested the intervention of the Commission under article 2007 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 meeting of the Commission and the most recent matter pursuant to article 5 (2007); or
c) Any deadline disputing 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. The request for the integration of the arbitral panel shall be made in writing and shall indicate whether consultations have been held, and in the event that the Commission has been met, actions taken; identify the specific measures in conflict and provide a brief summary of the legal basis of the complaint to the dispute clearly present sufficient.
4. 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 20.11. Such a meeting shall take place with the parties or attending.
5. 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 when it has a substantial interest in accordance with article 20.13 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.
6. If a Party, pursuant to paragraph 5, decides not to intervene as a complaining party or 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.
7. 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 20.09. List of Arbitrators
1. Before the entry into force of this Treaty, the parties agree to establish the list of arbitrators and the national list of arbitrators of "non-Party countries. For this purpose, each party shall appoint five (5) National arbitrators which shall form the list of arbitrators "National" and five (5) arbitrators of non- party, which shall form the list of arbitrators of "non-Party countries.
2. The rosters of arbitrators may be modified every three (3) years. Notwithstanding the above, at the request of a party, the Committee may revise the rosters of arbitrators before the expiry of this period.
3. Members of the roster of arbitrators shall meet the qualifications set out in article 20.10 (1).
Article 20.10. 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 either of 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 (2007), may not be arbitrators for the same dispute.
Article 20.11. 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) In the event that the warring parties fail to agree on the designation of the Chair of the arbitral panel shall be selected by lot from the list of arbitrators of "non-Party countries;
d) Each Party shall select one arbitrator litigants national of the other party "combatant between the list of arbitrators". Notwithstanding the above, opposing parties concerned may agree that the arbitral group shall serve as arbitrators of countries not part of a party;
e) If a Party fails to select a litigant, the arbitrator shall be appointed by lot from among the members of the nationals of other combatant Party included in the list of arbitrators ".
2. In the event that a party combatant composed of two (2) 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 that is not included in the lists and that is proposed 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 20.12. Model Rules of Procedure
1. The Commission shall establish the 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 otherwise agreed between the parties to the conflict, 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 article 20.15 and 20.16".
4. If the complaining party claims that a matter has been a cause of nullification or impairment of benefits in the sense of annex 20, 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 that it considers incompatible with this Agreement or to have caused nullification or impairment in the sense of annex 20, the terms of reference shall so indicate.
Article 20.13. Third Parties
In accordance with article 1.01 (2) (Establishment of a free trade area), a third party shall have the opportunity to be heard by the arbitral group in accordance with the model rules of procedure and submit a written submissions. Such communications shall also be made available to the parties to the conflict.
Article 20.14. 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 20.15. 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 20.14, unless the parties agree otherwise. The preliminary report also reflect communications by third parties.
2. Unless otherwise agreed between the parties - the arbitration panel 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 20.12 (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 20, or any other determination 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) Seek the views of the Parties to the conflict;
b) Reconsider its preliminary report; and
c) Any steps it deems appropriate.
Article 20.16. 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 20.17. 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 20, it shall determine the level of nullification or impairment and may suggest that the adjustments it considers mutually satisfactory for the parties involved.
Article 20.18. Suspension of Benefits
1. The conflict unless the parties to notify the Commission has been completed to the satisfaction of the same final report within fifteen (15) 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 20, annex 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 respondent consists of two or more parties (2), and one 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 20; 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 they have not 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 20.12 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. Domestic and Private Commercial Dispute Settlement Proceedings
Article 20.19. Interpretation of the Treaty to Domestic Judicial and Administrative Bodies
1. The Commission shall endeavour to agree as soon as possible, an adequate response non-binding interpretation or, when:
a) A Party considers that a matter of interpretation or application of this agreement arises out or in a judicial or administrative proceeding of the other party warrants the interpretation of the Commission; 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 20.20. 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 latter party is inconsistent with this Treaty.