Article 263. Rules of Procedure
1. Dispute settlement procedures under this Chapter shall be governed by the Rules of Procedure set out in Annex XX to this Agreement and by the Code of Conduct set out in Annex XXI 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 264. 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 265. Rules of Interpretation
The arbitration panel shall interpret the provisions referred to in Article 245 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 266. 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 245 of this Agreement and the basic rationale behind any findings and conclusions that they make. The Association Committee in Trade configuration, as set out in Article 408(4) 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.
Article 267. Referrals to the Court of Justice of the European Union
1. The procedures set out in this Article shall apply to disputes concerning the interpretation and application of a provision of this Agreement which imposes upon a Party an obligation defined by reference to a provision of Union law.
2. Where a dispute raises a question of interpretation of a provision of Union law referred to in paragraph 1, the arbitration panel shall not decide the question, but request the Court of Justice of the European Union to give a ruling on the question. In such cases, the deadlines applying to the rulings of the arbitration panel shall be suspended until the Court of Justice of the European Union has given its ruling. The ruling of the Court of Justice of the European Union shall be binding on the arbitration panel.
Section 4. General Provisions
Article 268. Lists of Arbitrators
1. The Association Committee in Trade configuration, as set out in Article 408(4) 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 Association Committee 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 XXI to this Agreement.
3. The Association Committee 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 249 of this Agreement.
Article 269. 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, either 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 seeking 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 248 of this Agreement and are deemed to be concluded when the arbitration panel notifies its ruling under Article 253 of this Agreement to the Parties and to the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement.
4. Nothing in this Agreement shall preclude a Party from implementing the suspension of obligations authorised by the DSB. The WTO Agreement shall not be invoked to preclude a Party from suspending obligations under this Chapter.
Article 270. 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.
Chapter 15. General Provisions on Approximation Under Title IV
Article 271. Progress In Approximation In Trade-related Areas
1. For the purposes of facilitating the assessment of the approximation, referred to in Article 419 of this Agreement, of Georgian law to Union law in the trade-related areas of Title IV (Trade and Trade-related Matters) of this Agreement, the Parties shall regularly, and at least once a year, discuss the progress in approximation according to the agreed timeframes provided for in Chapters 3, 4, 5, 6 and 8 of Title IV (Trade and Trade-related Matters) of this Agreement in the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, or one of its Sub- Committees established under this Agreement.
2. Upon request by the Union, and for the purposes of such discussion, Georgia shall submit to the Association Committee in Trade configuration or one of its Sub-Committees, as appropriate, information in writing on progress in approximation and on the effective implementation and enforcement of approximated domestic law, in relation to the relevant Chapters of Title IV (Trade and Trade-related Matters) of this Agreement.
3. Georgia shall inform the Union when it considers that it has completed the approximation provided for in any of the Chapters referred to in paragraph 1.
Article 272. Repeal of Inconsistent Domestic Law
As part of the approximation, Georgia shall repeal provisions of its domestic law or remove administrative practices which are inconsistent with Union law that is the object of approximation provisions under Title IV (Trade and Trade- related Matters) of this Agreement or with its domestic law approximated to the Union law accordingly.
Article 273. Assessment of Approximation In Trade-related Areas
1. The assessment of approximation by the Union referred to in Title IV (Trade and Trade-related Matters) of this Agreement shall start after Georgia has informed the Union pursuant to Article 271(3) of this Agreement, unless otherwise provided for in Chapters 4 and 8 of Title IV (Trade and Trade-related Matters) of this Agreement.
2. The Union shall assess whether the law of Georgia has been approximated to Union law and whether it is implemented and enforced effectively. Georgia shall provide the Union with all necessary information to enable such assessment, in a language to be mutually agreed.
3. The assessment by the Union pursuant to paragraph 2 shall take into account the existence and operation of relevant infrastructure, bodies and procedures in Georgia necessary for the effective implementation and enforcement of the law of Georgia.
4. The assessment by the Union pursuant to paragraph 2 shall take account of the existence of any provisions of domestic law or administrative practices that are inconsistent with Union law that is the object of approximation provisions under Title IV (Trade and Trade-related Matters) of this Agreement or with the domestic law approximated to the Union law accordingly.
5. The Union shall inform Georgia within a timeframe to be determined in accordance with Article 276(1) of this Agreement about the results of its assessment, unless otherwise provided. The Parties may discuss the assessment in the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, or its relevant Sub- Committees in accordance with Article 419(4) of this Agreement, unless otherwise provided.
Article 274. Developments Relevant to Approximation
1. Georgia shall ensure the effective implementation of the domestic law approximated under Title IV (Trade and Trade-related Matters) of this Agreement and undertake any action necessary to reflect the developments in Union law in its domestic law, in accordance with Article 418 of this Agreement.
2. The Union shall inform Georgia about any final Commission proposals to adopt or amend Union law relevant to approximation obligations incumbent on Georgia under Title IV (Trade and Trade-related Matters) of this Agreement.
3. Georgia shall inform the Union of actions, including legislative proposals and administrative practices, which may affect the fulfilment of its approximation obligations under Title IV (Trade and Trade-related Matters) of this Agreement.
4. Upon request, the Parties shall discuss the impact of any proposals or actions referred to under paragraphs 2 and 3 on the law of Georgia or on the compliance with the obligations under Title IV (Trade and Trade-related Matters) of this Agreement.
5. If, after an assessment has been made under Article 273 of this Agreement, Georgia modifies its domestic law to take account of changes on approximation in Chapters 3, 4, 5, 6 and 8 of Title IV (Trade and Trade-related Matters) of this Agreement, a new assessment by the Union shall be conducted pursuant to Article 273 of this Agreement. If Georgia takes any other action that could have an effect on the implementation and enforcement of the approximated domestic law, a new assessment by the Union may be conducted pursuant to Article 273 of this Agreement.
6. If the circumstances so require, particular benefits accorded by the Union based on an assessment that the law of Georgia had been approximated to Union law and was implemented and enforced effectively may be temporarily suspended, if Georgia does not approximate its domestic law to take account of changes to Title IV (Trade and Trade-related Matters) of this Agreement concerning approximation, if the assessment referred to in paragraph 5 of this Article shows that the law of Georgia is no longer approximated to the Union law, or if the Association Council fails to take a decision to update Title IV (Trade and Trade-related Matters) of this Agreement in line with developments in Union law.
7. If the Union intends to implement any such suspension, it shall promptly notify Georgia. Georgia may refer the matter to the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, within three months of the notification, providing a statement of reasons in writing. The Association Committee in Trade configuration shall discuss the matter within three months from the referral. If the matter is not referred to the Association Committee in Trade configuration, or if it cannot be resolved by this Committee within three months from the referral, the Union may implement the suspension of benefits. The suspension shall be promptly lifted if the Association Committee in Trade configuration subsequently resolves the matter.
Article 275. Exchange of Information
The exchange of information in relation to approximation under Title IV (Trade and Trade-related Matters) of this Agreement shall take place through the contact points established in Article 222(1) of this Agreement.
Article 276. General Provision
1. The Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, shall adopt procedures to facilitate the assessment of the approximation and to ensure the effective exchange of information pertaining to approximation, including the timeframes for assessment and the form, content and language of the exchanged information.
2. Any reference to a specific Union act in Title IV (Trade and Trade-related Matters) of this Agreement covers amendments, supplements and replacement measures published in the Official Journal of the European Union before 29 November 2013.
3. The provisions of Chapters 3, 4, 5, 6 and 8 of Title IV (Trade and Trade-related Matters) of this Agreement shall prevail over the provisions set out in this Chapter to the extent that there is a conflict. 4. Claims of violation of the provisions of this Chapter shall not be pursued under Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement.
Title V. ECONOMIC COOPERATION
Chapter 1. Economic Dialogue
Article 277.
1. The EU and Georgia shall facilitate the process of economic reform by improving the understanding of the fundamentals of their respective economies and the formulation and implementation of economic policies.
2. Georgia shall strive to establish a functioning market economy and to gradually approximate its economic and financial regulations to those of the EU, while ensuring sound macroeconomic policies.
Article 278.
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 frameworks, financial sector policy and economic statistics;
(c) exchanging information and experiences on regional economic integration, including the functioning of the European economic and monetary union;
(d) reviewing status of bilateral cooperation in the economic, financial and statistical fields.
Chapter 2. Management of Public Finances and Financial Control
Article 279.
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 and EU good practices, 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 280.
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 281.
With reference to Article 280 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, as subscribed to by Member States at EU level. To that effect, without prejudice to EU and Member States competences, 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 282.
The Parties shall also enhance and strengthen their cooperation aimed at the development of the Georgia's tax system and administration, including the enhancement of collection and control capacity, ensure effective tax collection and reinforce the fight against tax fraud and tax avoidance. The Parties shall strive to enhance cooperation and sharing of experiences in combating tax fraud, in particular carousel fraud.
Article 283.
The Parties shall develop their cooperation and harmonise policies in counteracting and fighting fraud and smuggling of excisable products. This cooperation will include, inter alia, the gradual approximation of excise rates on tobacco products, as far as possible, taking into account the constraints of the regional context, and in line with the World Health Organisation Framework Convention on Tobacco Control. To that end, the Parties will look to strengthen their cooperation within the regional context.
Article 284.
A regular dialogue will take place on the issues covered by this Chapter.
Article 285.
Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XXII to this Agreement in accordance with the provisions of that Annex.
Chapter 4. Statistics
Article 286.
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 EU, 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 the EU acquis in statistics, including the European Statistics Code of Practice, in order to align the national statistical system with the European norms and standards.
Article 287.
Cooperation shall aim at:
(a) further strengthening the capacity of the national statistical system, focusing on the sound legal basis, production of adequate data and metadata, dissemination policy and user friendliness, taking into account various groups of users, in particular public and private sectors, academic community and other users;
(b) progressive alignment of the statistical system of Georgia with the European Statistical System;
(c) fine-tuning of data provision to the EU, taking into account the application of relevant international and European methodologies, including classifications;
(d) enhancing the professional and management capacity of the national statistical staff to facilitate the application of European statistical standards and to contribute to the development of the Georgian statistical system;
(e) exchanging experience between the Parties on the development of statistical know-how, and
(f) promoting total quality management of all statistical production processes and dissemination.
Article 288.
The Parties shall cooperate within the framework of the European Statistical System in which Eurostat is the European statistical authority. The cooperation shall include a focus on the areas of:
(a) macroeconomic statistics, including national accounts, foreign trade statistics, balance of payments statistics, foreign direct investment statistics;
(b) demographic statistics, including censuses and social statistics;
(c) agricultural statistics, including agricultural censuses and environment statistics;
(d) business statistics, including business registers and use of administrative sources for statistical purposes;
(e) energy statistics, including balances;
(f) regional statistics;
(g) horizontal activities, including statistical classifications, quality management, training, dissemination, use of modern information technologies, and
(h) other relevant areas.
Article 289.
The Parties shall, inter alia, exchange information and expertise and shall develop their cooperation, taking into account the already accumulated experience in the reform of the statistical system launched within the framework of various assistance programmes. Efforts shall be directed towards further alignment with the EU acquis in statistics, on the basis of the national strategy for the development of the Georgian statistical system, and taking into account the development of the European Statistical System. The emphasis in the statistical data production process shall be the further development of sample surveys and use of administrative records, while taking into account the need to reduce the response burden. The data shall be relevant for the designing and monitoring of policies in key areas of social and economic life.
Article 290.
A regular dialogue shall take place on the issues covered by this Chapter. To the extent possible, the activities undertaken within the European Statistical System, including training, should be open for Georgian participation.
Article 291.
Gradual approximation of Georgian legislation wherever relevant and applicable to the EU acquis in statistics shall be carried out in accordance with the annually updated Statistical Requirements Compendium which is considered by the Parties as annexed to this Agreement (Annex XXIII).
Title VI. OTHER COOPERATION POLICIES
Chapter 1. Transport
Article 292.
The Parties shall:
(a) expand and strengthen their transport cooperation in order to contribute to the development of sustainable transport systems;
(b) promote efficient, safe and secure transport operations as well as intermodality and interoperability of transport systems, and
(c) endeavour to enhance the main transport links between their territories.
Article 293.
This cooperation shall cover, inter alia the following areas:
(a) development of a sustainable national transport policy covering all modes of transport, particularly with a view to ensuring environmentally friendly, efficient, safe and secure transport systems and promoting the integration of these considerations in the sphere of transport into other policy areas;
(b) development of sector strategies in light of the national transport policy, including legal requirements for the upgrading of technical equipment and transport fleets to meet international standards as defined by Annexes XXIV and XV-D to this Agreement, for road, rail, aviation, maritime transport, and intermodality, including timetables and milestones for implementation, administrative responsibilities as well as financing plans;
(c) strengthening of the infrastructure policy in order to better identify and evaluate infrastructure projects in the various modes of transport;
(d) development of funding policies focusing on maintenance, capacity constraints and missing link infrastructure as well as activating and promoting the participation of the private sector in transport projects;
(e) accession to relevant international transport organisations and agreements including procedures for ensuring strict implementation and effective enforcement of international transport agreements and conventions;
(f) scientific and technical cooperation and exchange of information for the development and improvement of technologies in transport, such as intelligent transport systems; and
(g) promotion of the use of intelligent transport systems and information technology in managing and operating all relevant modes of transport as well as supporting intermodality and cooperation in the use of space systems and commercial applications facilitating transport.
Article 294.
1. Cooperation shall also aim at improving the movement of passengers and goods, increasing fluidity of transport flows between Georgia, the EU and third countries in the region, by removing administrative, technical and other obstacles, improving transport networks and upgrading the infrastructure in particular on the main networks connecting the Parties. This cooperation shall include actions to facilitate border-crossings.
2. Cooperation shall include information exchange and joint activities:
(a) at regional level, in particular taking into consideration and integrating progress achieved under various regional transport cooperation arrangements such as Eastern Partnership Transport Panel, the Transport Corridor Europe- Caucasus-Asia (TRACECA), the Baku process and other transport initiatives;
(b) at international level, including with regard to international transport organisations and international agreements and conventions ratified by the Parties, and
(c) in the framework of the various transport agencies of the EU.
Article 295.
A regular dialogue will take place on the issues covered by this Chapter.
Article 296.
Georgia shall carry out approximation of its legislation to the EU acts and international instruments referred to in Annexes XXIV and XV-D to this Agreement in accordance with the provisions of those Annexes.
Chapter 2. Energy Cooperation
Article 297.
The cooperation should be based on the principles of partnership, mutual interest, transparency and predictability and shall aim at market integration and regulatory convergence in the energy sector, taking into account the need to ensure access to secure, environmentally friendly and affordable energy.
Article 298.
The cooperation should cover, inter alia the following areas:
(a) energy strategies and policies;
(b) the development of competitive, transparent and efficient energy markets allowing third parties with non-discriminatory access to networks and consumers following EU standards, including the development of the relevant regulatory framework, as required;
(c) cooperation on regional energy issues and the possible accession of Georgia to the Energy Community Treaty in respect of which Georgia has a status of observer at present;
(d) development of an attractive and stable investment climate by addressing institutional, legal, fiscal and other conditions;
(e) energy infrastructures of common interest, in order to diversify energy sources, suppliers and transportation routes in an economic and environmentally sound manner;
(f) enhancement of security of energy supply, increasing market integration and gradual regulatory approximation towards key elements of the EU acquis;