(a) To ensure compliance with the provisions of this Agreement;
(b) To monitor the implementation of the Agreement and evaluate the results obtained in its application;
(c) Seek to resolve disputes that may arise regarding the interpretation or application of this Agreement;
(d) Supervise the work of all committees and working groups established under this Agreement and recommend appropriate actions;
(e) Determining the amount of remuneration and expenses that will be paid to the arbitrators; and
(f) Consider any other matter that may affect the operation of this Agreement.
3. The Commission may:
(a) Establish and delegate responsibilities to committees and working groups;
(b) Progress in the implementation of the objectives of this Agreement through the adoption of any change in accordance with its domestic law: (1)
(i) In the programme of release comecial through tariff relief under article 22.3 (effect);
(ii) The rules of origin, and
(iii) Sections of government procurement (annex 13).
(c) To seek the advice of non-governmental persons or groups;
(d) To approve and modify the model rules of procedure referred to in article 16.10 (rules of procedure for arbitral tribunals); and
(e) If the parties so agree, take any other action in the exercise of its functions.
4. The Commission shall establish its rules and procedures. all decisions of the Commission shall be taken by mutual agreement.
5. The Committee shall meet at least once a year in regular session. the regular meetings of the Commission shall be chaired successively by each party.
Article 15.2. Coordinators of the Free Trade Agreement
Each Party shall designate a coordinator who will work together in preparations for Commission meetings and shall appropriate follow-up to decisions of the Commission.
Chapter 16. Settlement of Disputes
Article 16.1. Objectives
1. The Parties shall at all times endeavour to agree on the interpretation and application of this Agreement and shall make every effort through cooperation and consultations or other means, to reach a mutually satisfactory resolution of any matter that might affect its operation.
2. The objective of this chapter is to provide an effective, efficient and transparent process (settlement of disputes between the parties concerning their rights and obligations under this Agreement.
Article 16.2. Scope of Application
1. Except as otherwise provided in this Agreement, the dispute settlement provisions of this chapter shall apply:
(a) For the avoidance or the settlement of disputes between the parties concerning the interpretation or application of this Agreement; or
(b) Where a Party considers that a measure of the other party is or would be inconsistent with the obligations of this Agreement or that the other party has breached otherwise in respect of the obligations under this agreement; or
(c) Where a Party considers that an actual or proposed measure of the other party cause nullification or impairment in the sense of 16.2.1. annex
2. In accordance with Article 16.3, this chapter is without prejudice to the rights of the Parties to have recourse to dispute settlement procedures available under other agreements to which they are party.
3. Any matter concerning the interpretation, application or implementation of chapters, environmental and labour shall be resolved through the application of the procedures provided for in the relevant chapters.
Article 16.3. Choice of Forum
1. In the event of any dispute arising under this Agreement and under another Free Trade Agreement to which both parties are parties or the WTO Agreement, the complaining party may select the forum in which to settle the dispute.
2. Once the complaining party has requested the establishment of an arbitral tribunal under the agreement referred to in paragraph 1. the Forum selected shall be exclusive of the other.
Article 16.4. Inquiries
1. Any Party may request in writing to the other party for consultations regarding any existing or draft measure in that party that considers incompatible with this Agreement or any other matter it considers that might affect the operation of this Agreement.
2. Any request for consultations shall give the reasons for the request including identification of the measure in force or project or other subject matter and noting the legal basis of the complaint.
3. The Party to which it was addressed to the request for consultations shall respond in writing within a period of ten (10) days from the date of its receipt.
4. The parties shall enter into consultations within a period of no more than:
(a) Within fifteen (15) days after the date of receipt of the request for matters concerning perishable goods; or
(b) Within thirty (30) days after the date of receipt of the request for all other matters.
5. During the consultations, the parties to the dispute shall make every effort to reach a mutually satisfactory resolution of any matter subject to consultations in accordance with this article. to this end, the parties involved in the consultations shall provide sufficient information to enable a full examination of how the actual or proposed measure or any other matter might affect the operation and application of this Agreement. the consultations shall be confidential and without prejudice to the rights of any party.
6. With a view to seeking a mutually agreed solution of the matter, the consulting Party may make proposals to the party who consulted, give due consideration to the proposals made.
7. Consultations may be held in person or by any technological means available to the parties. if in person, consultations shall take place in the capital of the Party, unless they agree otherwise.
Article 16.5. Refusal to Consultations
If the party consulted fails to respond to the request for consultations within ten (10) days of the receipt of the request, the consulting party may refer to the Commission without waiting for within the periods referred to in Article 16.6.
Article 16.6. Intervention of the Commission
1. Consulting Any Party may request in writing that the Commission meet whenever an issue is not resolved in any of the following cases:
(a) In the cases specified in Article 16.5;
(a) Within thirty (30) days of the delivery of the request for consultations;
(b) Within fifteen (15) days of delivery of a request for consultations in matters regarding perishable goods; or
(d) Other period as may be agreed by the parties,
2. The party requesting the intervention of the Commission shall explain the reasons for the request including identification of the measure or other matter at issue and an indication of the legal basis of the dispute.
3. Unless it decides otherwise, the Commission shall convene within ten (10) days of the delivery of the request and shall undertake without delay to the settlement of the dispute.
4. In order to assist the parties to reach a mutually satisfactory resolution of the dispute, the Commission may:
(a) Convene technical advisers or create such working groups or expert as it deems necessary;
(b) Recourse to conciliation or mediation; or
(c) Make recommendations.
4. Unless it decides otherwise, the Commission shall carry forward two or more before proceedings according to this article regarding the same measure or matter. the Commission may consolidate two or more proceedings regarding other matters before under this article, when it deems appropriate to be considered jointly.
5. A Party may also request in writing a meeting of the Commission where consultations have been held pursuant to chapter 6 (sanitary and phytosanitary measures) and chapter 7 (Technical Barriers to Trade), which replaced the consultations provided for in article 16.4.
6. The Committee may meet in person or by any technological means that is available to the parties to enable them to comply with this stage of the procedure.
Article 16.7. Establishment of an Arbitral Tribunal
1. The complaining party may request by means of a written notification addressed to the other party, the establishment of an arbitral tribunal if the parties involved in the consultations failure to resolve the matter within:
(a) Fifteen (15) days of the meeting of the Commission under Article 16.6;
(b) Fifteen (15) days of the meeting of the Committee to discuss the most recent matter has been submitted, when they have acquired several procedures under article 16.6.4;
(c) Thirty (30) days after a Party has delivered a request for consultations under Article 16.6 in a matter concerning perishable goods, if the Commission has not convened pursuant to Article 16.6;
(d) Fifty-five (55) days after a Party has delivered a request for consultations under Article 16.4, if the Commission has not convened pursuant to article 16.6.3; or
(e) Any time period that the parties agree to consultants.
2. The complaining party shall deliver the request to the other party indicating the reasons for the request including identification of the measure or other matter at issue and an indication of the legal basis of the complaint.
3. Unless otherwise agreed by the parties to the dispute, the arbitral tribunal shall be established and perform its functions in accordance with the provisions of this chapter.
4. The date of establishment of the arbitral tribunal shall be the date on which the Chair is appointed.
5. An arbitral tribunal may not be established to review a proposed measure. article 16.8: composition of arbitral tribunals
Article 16.8. Composition of Arbitral Tribunals
1. The arbitral tribunal shall consist of three members.
2. In the written notification pursuant to article 16.7, the complaining party has requested the establishment of an arbitral tribunal shall appoint one member to the arbitral tribunal.
3. Within fifteen (15) days of the receipt of the notification referred to in paragraph 2, the respondent party shall appoint one member to the arbitral tribunal.
4. Within fifteen (15) days of the appointment of the second arbitrator, the parties to the dispute shall designate by common agreement the third arbitrator who shall be the Chair of the arbitral tribunal.
5. If all three (3) arbitrators have not been designated or appointed within thirty (30) days after the date of receipt of the notice of claim to the arbitral tribunal referred to in paragraph 2, the necessary appointments shall be made at the request of either party by the Secretary-General of ALADI within three (3) days after the expiry of the period of thirty (30) days.
6. The Chairman of the arbitral tribunal shall not be a national of any of the Parties or permanent residence in the territory of any of them, nor be employed by any of the parties or have had any involvement in the case in any capacity.
7. Each Party shall endeavour to select panellists litigant who have expertise or experience relevant to the subject matter of the dispute.
8. All arbitrators shall:
(a) Have expertise or experience in law and international trade or other matters covered by this Agreement or the resolution of disputes arising under international trade agreements;
(b) Strictly be chosen on the basis of its objectivity, impartiality, reliability and sound judgment;
(c) Be independent, not be linked with one of the Parties and not receive instructions from the same; and
(d) Comply with the Code of Conduct for arbitrators established in the Understanding on Rules and Procedures Governing the Settlement of Disputes of the WTO Agreement.
9. No arbitrator may be in a dispute individuals who have participated in accordance with article 16.6.3
10. If any of the arbitrators appointed in accordance with this article abandoned or is unable to serve as a replacement arbitrator shall be appointed within fifteen (15) days in accordance with the selection procedure used to select the original arbitrator and the replacement shall have all the powers and duties of the original arbitrator. if it has not been possible desginarlo within that period, the appointment shall be made at the request of either party by the Secretary-General of ALADI within thirty (30) days.
Article 16.9. Functions of Arbitral Tribunals
1. The function of an arbitral tribunal is to make an objective assessment of the dispute referred to it, and formulate the necessary findings for settling the dispute submitted to them.
2. The conclusions and the report of the arbitral tribunal shall be binding on the parties to the dispute.
3. The arbitral tribunal shall take its decisions by consensus. if the arbitral tribunal is unable to reach consensus it may take its decisions by a majority of its members.
Article 16.10. Rules of Procedure for Arbitral Tribunals
1. Unless the parties to the dispute otherwise agree, the proceedings of the arbitral tribunal shall be governed by the Model Rules of Procedure.
2. Unless the parties to the dispute otherwise agree within twenty (20) days after the date of delivery of the request for the establishment of an arbitral tribunal the arbitral tribunal shall be:
"review in the light of the relevant provisions of the Agreement, the matter referred to in the request for the establishment of an arbitral tribunal pursuant to article 16.7 and issue the findings and determinations to resolve the dispute".
3. If a party in its request for the establishment of the arbitral tribunal has identified a measure that has caused nullification or impairment of benefits in accordance with annex 16.2.1, the terms of reference shall so indicate.
4. At the request of a party to the dispute or on its own initiative, the arbitral panel may seek scientific information and technical advice from experts as it deems appropriate. any information obtained in this way must be delivered to the parties to the dispute to its comments.
5. Unless the arbitral tribunal determines otherwise given the particular circumstances of the case, each Party to the dispute shall bear the costs of its appointed arbitrator. the costs of the Chairman of the arbitral tribunal and other expenses associated with the proceedings shall be borne in equal parts by the parties to the dispute.
6. If a party wishes the arbitral tribunal to make findings about the level of adverse trade effects caused to the other party a breach of the obligations of this Agreement; or a measure determined to have caused nullification or impairment in accordance with article 16.2.1, the terms of reference shall so indicate.
Article 16.11. Preliminary Report
1. The report of the arbitral tribunal shall be drafted without the presence of the Parties and shall be based on the relevant provisions of this Agreement and the submissions and arguments of the Parties.
2. Unless the parties to the dispute otherwise agree, the arbitral tribunal shall:
(a) Within a period of ninety (90) days of the nomination of the last arbitrator selected; or
(b) In cases of urgency including those relating to perishable goods within forty five (45) days of the nomination of the last arbitrator selected,
present a preliminary report to the dispute to the Parties.
3. The initial report shall contain:
(a) The findings of fact; including any resulting from a request pursuant to article 16.10.6
(b) The determination of the arbitral tribunal as to whether a Party in the dispute has breached its obligations under this Agreement or whether the measure of that Party is a cause of nullification or impairment in the sense of annex 16.2.1 determination or any other requested in the terms of reference; and
(c) The decision of the arbitral tribunal in the settlement of the dispute.
4. In exceptional cases, when the arbitral tribunal considers that it cannot issue its preliminary report within ninety (90) days or within forty five (45) days in cases of urgency, in writing to inform the Parties to the dispute of the reasons for the delay and shall at the same time an estimate of the period within which will issue its report. in no case should the period of delay shall not exceed a further period of thirty (30) days unless the parties to the dispute otherwise.
5. A Party to the dispute may submit written comments to the arbitral tribunal on the preliminary report within fifteen (15) days of the presentation of the report or within such other period of time as agreed by all in the dispute.
6. After considering any written comments on the initial report the arbitral tribunal may reconsider its report and make any further examination that it considers appropriate.
Article 16.12. Final Report
The arbitral tribunal shall present to the parties to the dispute a final report and, where appropriate, the individual views on issues on which has not been unanimous decision within thirty (30) days of the presentation of the initial report unless the parties to the dispute agree otherwise. the parties to the dispute shall make available to the public the final report within fifteen (15) days, subject to the protection of confidential information.
Article 16.13. Implementation of the Final Report
1. The final report of the arbitral tribunal shall be final and binding on the parties to the dispute and shall not be subject to appeal.
2. In its final report if the arbitral tribunal determines that a Party has not complied with its obligations under this Agreement or that measure is a party causing nullification or impairment in the sense of 16.2.1 Annex, the decision shall, whenever possible, to eliminate the non-conformity or the nullification or impairment.
3. Unless the parties to the dispute agree otherwise, they shall implement the decision of the arbitral tribunal contained in the final report within a reasonable period of time if it is not practicable to comply immediately.
4. If the arbitral tribunal finds that a measure of a Party is in conformity with its obligations under this Agreement, that Party shall notify the other party either of those stages, legislative, regulatory or administrative, that Party shall adopt to implement the decision of the arbitral tribunal.
5. The reasonable period of time shall be determined by agreement between the parties to the dispute, or in the absence of such agreement within forty five (45) days from the public disclosure of the final report to the dispute, either party may refer the matter to which the arbitral tribunal shall determine the reasonable period of time after consultation with the other party in the contraversia.
Article 16.14. Compliance Within the Prudential Deadline
1. In case of disagreement as to the existence or consistency of measures to comply with the ruling or to the consistency with this agreement of the measures taken within reasonable period of time, the dispute shall be settled under the dispute settlement procedure of this chapter, with intervention, whenever possible, of the arbitral tribunal has taken note of the matter.
2. The arbitral tribunal shall circulate its report to the parties to the dispute within sixty (60) days from the date on which the matter was referred to it. if the arbitral tribunal considers that it cannot provide its report within this period, shall be communicated in writing to the parties to the dispute the reasons for the delay and the date on which it may be submitted. in no case should the period of delay shall not exceed a further period of thirty (30) days unless the parties to the dispute otherwise.
Article 16.15. Compensation and Suspension of Benefits
1. If the responding party does not in conformity with this agreement of the measure declared incompatible with the decision of the arbitral tribunal in accordance with article 16.12 within the reasonable period of time determined in accordance with article 16.13, that Party shall, if it is required, enter into negotiations with the complaining party with a view to finding a mutually acceptable compensation.
2. If the arbitral tribunal decides that the measure adopted by a Party is causing nullification or impairment in the sense of 16.2.1 Annex, and has eliminated the inconsistency within the reasonable period of time established in accordance with article 16.13, that Party shall, if it is required, enter into negotiations with the complaining party with a view to finding a mutually acceptable compensation.
3. If the parties do not agree on compensation within thirty (30) days after the expiry of the reasonable period of time, pursuant to article 16.13 The Party
A claimant may suspend the respondent party, the application of benefits of equivalent effect. the notice shall specify the level of benefits that the Party intends to suspend. benefits shall not be suspended while the complaining party is in negotiations in accordance with paragraphs 1 or 2.
4. If the parties have agreed to a mutually satisfactory compensation and a party considers that the other party has not complied with the terms of the Agreement may thereafter notify the other party in writing of its intention to suspend the application of benefits of equivalent effect with respect to the respondent party. the notice shall specify the level of benefits that the Party intends to suspend.
5. Compensation and suspension of benefits are temporary measures. neither compensation and suspension of benefits is preferred to the implementation of the decision to bring a measure into conformity with this Agreement. compensation and suspension of benefits shall only be applied until it has eliminated the measure found to be inconsistent with this Agreement; or the party that must implement the decision of the arbitral tribunal has made, or until they reach a mutually satisfactory solution.
6. In considering what benefits to suspend pursuant to paragraph 3:
(a) The complaining party shall first seek to suspend benefits in the same sector or sectors affected by the measure that the arbitral tribunal has found to be inconsistent with this Agreement or causing nullification or impairment in accordance with annex 16.2.1; 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. the communication in which it announces such a decision shall indicate the reasons on which it is based.
7. Upon written request of the Party concerned, the original arbitral panel shall determine whether the level of benefits that the complaining party has suspended is excessive in accordance with paragraph 3. if the arbitral tribunal cannot be established with its original Members shall apply the procedure laid down in Article 16.8.
8. The arbitral tribunal shall issue its ruling within sixty (60) days of the request made in accordance with paragraph 6, or if the arbitral tribunal cannot be established with its original members, from the date on which the last arbitrator is appointed. the decision of the arbitral tribunal shall be final and binding. the decision shall be communicated to the parties to the dispute and making available to the public.
Article 16.16. Compliance Review
1. Without prejudice to the procedures set out in Article 16.15, if the responding party considers that it has eliminated the non-conformity or the nullification or impairment found by the arbitral tribunal may refer the matter to the arbitral tribunal by written notification to the other party. the arbitral tribunal shall issue its report on the matter within 90 days of such notification.
2. If the arbitral tribunal decides that the responding party has eliminated the non-conformity or the nullification or impairment, it shall reinstate the complaining party without delay the benefits which has been suspended pursuant to Article 16.15.
Chapter 17. Labour
Article 17.1. Common Commitments
1. The parties reaffirm their obligations as members of the International Labor Organization (ILO) and their commitments under
The ILO Declaration on Fundamental Principles and Rights at Work and its follow-up (1998). each Party shall endeavour to ensure that such principles and rights set forth in article 17.5, are recognized and protected by its national legislation.
2. Recognizing the right of each party to establish its own domestic labor standards and to adopt or modify its labour laws, each Party shall endeavour to ensure that its laws provide for labor standards consistent with the internationally recognized labor rights set forth in article 17.5.
Article 17.2. Compliance with National Legislation
1. Without prejudice to the sovereign rights of each party to establish its own national policies and priorities and to establish, manage and regulate its own labor laws and regulations, the parties undertake to apply their own labor laws.
2. The Parties recognize that it is inappropriate to encourage trade or investment by weakening or reducing the protections provided for in its domestic labour legislation.
Article 17.3. Labor Cooperation
1. The Parties recognise the importance of bilateral cooperation to strengthen actions on labour matters. to this end, the parties agree to develop activities in the areas of cooperation set out in the list below, which is not an exclusive:
(a) Fundamental labour rights and their effective application;
(b) Decent work;