5. Where more than one Party requests the establishment of an arbitration panel relating to the same matter or where the request involves more than one Party complained against, and whenever feasible, a single arbitration panel should be established.
6. A Party which is not a party to the dispute shall be entitled, on delivery of a written notice to the parties to the dispute, to make written submissions to the arbitration panel, receive written submissions, including annexes, from the parties to the dispute, attend hearings and make oral statements.
Article 15.7. Composition of the Arbitration Panel
1. The arbitration panel shall comprise three arbitrators appointed in accordance with paragraphs 2 to 4.
2. In the written request pursuant to paragraph 2 of Article 15.6 (Establishment of the Arbitration Panel), the complaining Party shall appoint one arbitrator. In addition, the complaining Party shall present a list of four individuals who are willing to serve as the third arbitrator.
3. Within 30 days from the receipt of the request, the Party complained against shall appoint a second arbitrator and present a second list of four individuals who are willing to serve as the third arbitrator. If the Party complained against fails to appoint the second arbitrator within these 30 days, the first arbitrator shall appoint the second arbitrator from the list established in paragraph 2 within 10 days.
4. Within 30 days from the appointment of the second arbitrator, the parties to the dispute shall jointly appoint a third arbitrator taking into account the individuals proposed in the lists presented pursuant to paragraphs 2 and 3. If the third arbitrator has not been appointed within 60 days from the appointment of the second arbitrator, the two appointed arbitrators shall appoint the third arbitrator jointly within 30 days. The third arbitrator shall not be a national or permanent resident of a State Party. The third arbitrator thus appointed shall be the Chair of the arbitration panel.
5. Arbitrators must have specialised knowledge and experience in law and international trade. 6. The arbitrators appointed to serve in an arbitration panel shall be independent,
serve in their individual capacities, shall not take instructions from any organisation or government and shall not act as representatives nor be affiliated with the government or any governmental organisation of a Party. A person who has acted in any capacity in previous phases of the dispute settlement procedure or who does not have the necessary
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independence with regard to the positions of the parties to the dispute shall not act as an arbitrator in an arbitration panel.
7. Any arbitrator may be challenged by any party to the dispute if circumstances give rise to justifiable doubts as to the arbitratorâs objectivity, reliability, sound judgment or independence. If the other party to the dispute does not agree with the challenge or the challenged arbitrator does not withdraw within 15 days from the date when the evidence in support of the challenge was notified in writing to the other party to the dispute, the party to the dispute making the challenge may request that such matter be referred to the Chair of the arbitration panel whose decision shall be final. In case the challenged arbitrator is the Chair, the challenge shall be referred to the other two arbitrators.
8. Whenever possible, the arbitration panel referred to in Articles 15.13 (mplementation of the Arbitral Award) and 15.14 (Compensation and Suspension of Benefits) shall comprise the same arbitrators who issued the arbitral award.
9. If an arbitrator resigns, is removed or becomes unable to act, a successor shall be appointed in the same manner as prescribed for the appointment of the original arbitrator. The work of the arbitration panel shall be suspended pending appointment of the successor.
Article 15.8. Rules of Procedure
1. Annex XIX (Rules of Procedure) shall apply with respect to the proceedings of the arbitration panel, unless the parties to the dispute agree otherwise.
2, The Joint Committee shall review and complete Annex XIX (Rules of Procedure) at its first meeting.
3. Where a procedural question arises that is not covered by this Agreement, an arbitration panel may, after consultation with the parties to the dispute, adopt an appropriate procedure that is consistent with this Agreement.
Article 15.9. Applicable Law
The arbitration panel shall examine the matter referred to it in the request for the establishment of an arbitration panel in the light of the relevant provisions of this Agreement, in accordance with the rules of interpretation of public international law.
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Article 15.10. Hearings
1. The hearings of the arbitration panel shall be open to the public, unless the parties to the dispute agree otherwise. The hearings of the arbitration panel shall be partially or completely closed to the public for the discussion of information, which a party to the dispute has designated as confidential.
2. The location of any hearing of the arbitration panel, ifit is held in person, shall be decided by mutual agreement of the parties to the dispute, failing which, it shall be decided by the arbitration panel.
Article 15.11. Interim Reports and Arbitral Award
1. The arbitration panel should submit an interim report containing its findings and rulings to the parties to the dispute no later than 90 days from the date of establishment of the arbitration panel. A party to the dispute may submit written comments to the arbitration panel within 14 days from the receipt of the interim report. The arbitration panel should present to the parties to the dispute an arbitral award within 30 days from the receipt of the interim report.
2, The arbitral award, as well as any ruling under Articles 15.13 (Implementation of the Arbitral Award) and 15.14 (Compensation and Suspension of Benefits), shall be communicated to the Parties. The award, as well as the rulings, shall be made public, unless the parties to the dispute decide otherwise.
3. The arbitral award, as well as any ruling of the arbitration panel under this Chapter shall be final and binding upon the parties to the dispute.
4. Decisions of the arbitration panel shall be taken by a majority of the arbitrators if consensus cannot be reached. The arbitration panel shall not disclose any minority opinions.
Article 15.12. Suspension or Termination of Arbitration Panel Proceedings
1. Where the parties to the dispute agree, an arbitration panel may suspend its work at any time for a period not exceeding 12 months. If the work of an arbitration panel has been suspended for more than 12 months, the arbitration panelâs authority for considering the dispute shall lapse, unless the parties to the dispute agree otherwise.
2. The complaining Party may withdraw its complaint at any time before the interim report has been issued. Such withdrawal shall be without prejudice to its right to introduce anew complaint regarding the same issue at a later point in time, unless the parties to the dispute agree otherwise.
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3. The parties to the dispute may agree at any time to terminate the proceedings of an arbitration panel established under this Agreement by jointly notifying in writing the Chair of that arbitration panel.
Article 15.13. Implementation of the Arbitral Award
1. The Party complained against shall promptly comply with the ruling in the arbitral award, If it is impracticable to comply immediately, the parties to the dispute shall endeavour to agree on a reasonable period of time to do so. In the absence of such agreement within 45 days from the issuance of the arbitral award, either party to the dispute may request the original arbitration panel to determine the length of the reasonable period of time, in light of the particular circumstances of the case. The ruling of the arbitration panel should be given within 60 days from the receipt of that request.
2. The Party complained against shall, within the time period established in accordance with paragraph 1, notify the other party to the dispute of the measure adopted in order to comply with the ruling in the arbitral award, as well as provide a description of how the measure ensures compliance in a manner that allows the other party to the dispute to assess the measure.
3. In case of disagreement as to the existence of a measure complying with the ruling in the arbitral award or to the consistency of that measure with the ruling in the arbitral award, such disagreement shall be decided by the same arbitration panel upon request of either party to the dispute before compensation can be sought or suspension of benefits can be applied in accordance with Article 15.14 (Compensation and Suspension of Benefits). Such request shall identify the specific measure at issue and explain how such measure does not comply with the arbitral award in a manner to present the legal basis for the complaint. The ruling of the arbitration panel should be rendered within 90 days from the receipt of that request.
Article 15.14. Compensation and Suspension of Benefits
1. If the Party complained against does not comply with an arbitral award of the arbitration panel referred to in Article 15.13 (implementation of the Arbitral Award), or notifies the complaining Party that it does not intend to comply with the ruling in the arbitral award, that Party shall, if so requested by the complaining Party, enter into consultations with a view to agreeing on mutually acceptable compensation. If no such agreement has been reached within 20 days from the receipt of the request, the complaining Party shall be entitled to suspend the application of benefits granted under this Agreement but only equivalent to the benefits affected by the measure that the arbitration panel has found to be inconsistent with this Agreement.
2. In considering what benefits to suspend, the complaining Party should first seek
to suspend benefits in the same sector or sectors as that affected by the measure that the arbitration panel has found to be inconsistent with this Agreement. The complaining Party
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that considers it is not practicable or effective to suspend benefits in the same sector or sectors may suspend benefits in other sectors indicating the reasons that justify its decision.
3. The complaining Party shall notify the Party complained against of the benefits which it intends to suspend, the grounds for such suspension and when suspension will commence, no later than 30 days before the date on which the suspension is due to take effect. Within 15 days from the receipt of that notification, the Party complained against may request the original arbitration panel to rule on whether the benefits which the complaining Party intends to suspend are equivalent to the benefits affected by the measure found to be inconsistent with this Agreement, and whether the proposed suspension is in accordance with paragraphs 1 and 2. Within 10 days from the date of the request for the arbitration panel referred to in this paragraph, the complaining Party shall present a document indicating the methodology it has used to calculate the level of the suspension of benefits. The ruling of the arbitration panel should be given within 45 days from the receipt of that request. Benefits shall not be suspended until the arbitration panel has issued its ruling.
4. Compensation and suspension of benefits shall be temporary measures and shall only be applied by the complaining Party until the measure found to be inconsistent with this Agreement has been withdrawn or amended so as to bring it into conformity with this Agreement, or until the parties to the dispute have resolved the dispute otherwise.
5. At the request of a party to the dispute, the original arbitration panel shall rule on the conformity with the arbitral award of any implementing measures adopted after the suspension of benefits and, in light of such ruling, whether the suspension of benefits should be terminated or modified. The ruling of the arbitration panel should be given within 30 days from the receipt of that request.
Article 15.15. Time Periods
1. Any time period mentioned in this Chapter may be extended by mutual agreement of the parties to the dispute or by the arbitration panel upon request of a Party to the dispute.
2. When an arbitration panel considers that it cannot comply with a timeframe imposed on it under this Chapter, it shall inform the parties to the dispute in writing and provide an estimate of the additional time required. Any additional time required should not exceed 30 days.
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Article 15.16. Costs
The costs of arbitration shall be borne by the parties to the dispute in equal shares. Each party to the dispute shall bear its own legal and other costs incurred in relation to the arbitration. The arbitration panel may decide that the costs be distributed differently taking into account the particular circumstances of the case.
Article 15.17. Confidentiality
1. The Parties shall treat as confidential the information which has been designated as confidential by a Party submitting the information to the arbitration panel.
2. Written submissions of a party to the dispute shall not be published by the other party to the dispute or by the arbitration panel without explicit consent of the party to the dispute that presented the submission.
3. A party to the dispute shall, upon request of another party to the dispute, provide a non-confidential summary of the information contained in its written submission that may be disclosed to the public.
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Chapter 16. FINAL PROVISIONS
Article 16.1. Annexes and Appendices
The Annexes and Appendices, Records of Understandings, and footnotes to this Agreement constitute an integral part of this Agreement.
Article 16.2. Amendments
1. Any Party may submit proposals for amendments to this Agreement to the Joint Committee for consideration and recommendation.
2. Amendments to this Agreement other than those referred to in Article 14 Joint Committee) shall be subject to ratification, acceptance or approval.
3. Unless otherwise agreed, amendments shall enter into force on the first day of the third month following the date on which at least one EFTA State and one MERCOSUR State have deposited their instrument of ratification, acceptance or approval with the Depositary. In relation to an EFTA State ora MERCOSUR State depositing its instrument of ratification, acceptance or approval after the date on which at least one EFTA State and one MERCOSUR State have deposited their instrument of ratification, acceptance or approval with the Depositary, the amendment shall enter into force on the first day of the third month following the deposit of its instrument.
4. Amendments regarding issues related only to one or several EFTA States and one or several MERCOSUR States shall be agreed upon by the State Parties concerned.
5. The text of the amendments and the instruments of ratification, acceptance or approval shall be deposited with the Depositary.
6. A State Party may apply an amendment provisionally, subject to its domestic legal requirements. Provisional application of amendments shall be notified to the Depositary. The provisional application of an amendment shall begin:
(a) for an EFTA State, on the first day of the third month following the date of its notification to the Depositary, provided that at least one MERCOSUR State has notified its intention to apply the amendment provisionally or deposited its instruments of ratification, acceptance or approval; and
(b) for a MERCOSUR State, on the first day of the third month following the date of its notification to the Depositary, provided that at least one EFTA
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State has notified its intention to apply the amendment provisionally or deposited its instrument of ratification, acceptance or approval.
Article 16.3. Accession
1. Any State becoming a Member of EFTA or MERCOSUR, may accede to this Agreement on terms and conditions agreed by the State Parties and the acceding State.
2. In relation to an acceding State, this Agreement shall enter into force on the first day of the third month following the date on which the acceding State and the last State Party have deposited their instruments of ratification, acceptance or approval of the terms of accession.
Article 16.4. Withdrawal and Expiration
1. The MERCOSUR States may collectively withdraw from this Agreement by means of a written notification to the Depositary. Any EFTA State may withdraw from this Agreement by means of a written notification to the Depositary.
2, The withdrawal shall take effect six months from the date on which the notification is received by the Depositary.
3. Any EFTA State which withdraws from the Convention establishing the European Free Trade Association shall, ipso facto on the same day as the withdrawal takes effect, cease to be a Party to this Agreement.
4. Any MERCOSUR State which withdraws from the Treaty establishing the Common Market of the South shall, ipso facto, on the same day as the withdrawal takes effect, cease to be a Party to this Agreement.
5. Without prejudice to paragraphs 3 and 4, any State Party withdrawing from the Convention establishing the European Free Trade Association or from the Treaty establishing the Common Market of the South shall promptly notify the Depositary of the
initiation of the withdrawal process. The Depositary shall promptly notify the other Parties.
6. If all the EFTA States withdraw or if all the MERCOSUR States collectively withdraw, this Agreement shall, ipso facto, be terminated.
Article 16.5. Entry Into Force
1. This Agreement is subject to ratification, acceptance or approval. The instruments of ratification, acceptance or approval shall be deposited with the Depositary.
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2. This Agreement shall enter into force on the first day of the third month following the date on which at least one EFTA State and one MERCOSUR State have deposited their instrument of ratification, acceptance or approval with the Depositary.
3. In relation to an EFTA State ora MERCOSUR State depositing its instrument of ratification, acceptance or approval after the date on which at least one EFTA State and a MERCOSUR State have deposited their instrument of ratification, acceptance or approval with the Depositary, this Agreement shall enter into force on the first day of the third month following the deposit of its instrument.
4. A State Party may apply this Agreement provisionally, subject to its domestic legal requirements. Provisional application of this Agreement shall be notified to the Depositary. The provisional application shall begin:
a) for an EFTA State, on the first day of the third month following the date of its notification to the Depositary, provided that at least one MERCOSUR State has notified its intention to apply this Agreement provisionally or deposited its instrument of ratification, acceptance or approval; and
b) for a MERCOSUR State, on the first day of the third month following the date of its notification to the Depositary, provided that at least one EFTA State has notified its intention to apply this Agreement provisionally or deposited its instrument of ratification, acceptance or approval.
Article 16.6. Depositary 1. the Government of Norway Shall Act as Depositary.
2. An original of this Agreement and of any amendment shall be lodged with Paraguay.
3. Paraguay shall coordinate the actions of the MERCOSUR States.
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IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement.
Done at Rio de Janeiro, this 16" day of September 2025, in two originals in English, one of which shall be deposited with the Depositary and the other shall be lodged with Paraguay. The Depositary shall transmit certified copies to all the Parties. For internal approval purposes, official translations of the authentic text shall be prepared by the Parties and exchanged through diplomatic channels.
For Iceland For the Argentine Republic
wscinttiesâmgatce sscigintey tthe sos eens
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ANNEX XII
REFERRED TO IN ARTICLE 8.21
FINANCIAL SERVICES
ANNEX XII REFERRED TO IN ARTICLE 8.21
FINANCIAL SERVICES
Article 1. Scope and Definitions
1. This Annex applies to measures by the State Parties affecting trade in financial snag 1 services.
2. For the purposes of subparagraph (b) of Article 8.2 (Definitions) of the Agreement, âservices supplied in the exercise of governmental authorityâ means:
(a) activities conducted by a central bank or monetary authority or by any other public entity in pursuit of monetary or exchange rate policies;
(b) activities forming part of a statutory system of social security or public retirement plans; and
(c) other activities conducted by a public entity for the account or with the guarantee or using the financial resources of the Government.
3. For the purposes of subparagraph (b) of Article 8.2 (Definitions) of the Agreement, ifa State Party allows any of the activities referred to in subparagraphs 2 (b) or 2 (c) to be conducted by its financial service suppliers in competition with a public entity or a financial service supplier, âservicesâ shall include such activities.
4. Subparagraph (c) of Article 8.2 (Definitions) of the Agreement shall not apply to services covered by this Annex.
5. For the purposes of this Annex:
(a) âfinancial serviceâ means any service ofa financial nature offered by a financial service supplier of a State Party. Financial services include all insurance and insurance-related services, and all banking and other financial services (excluding insurance). Financial services include the following activities:
Insurance and insurance-related services
(i) direct insurance (including co-insurance): (aa) life;
1 For the purposes of this Annex, âtrade in financial servicesâ shall be understood in accordance with the
definition contained in subparagraph 1 (a) of Article 8.2 (Definitions) of the Agreement.
(ii) (iii) (iv)
(bb) non-life; reinsurance and retrocession; insurance intermediation, such as brokerage and agency;
services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services;
Banking and other financial services (excluding insurance)
(v) (vi)
(vii)
(viii)
(%) (*)
(xi)
(xii)
(xiii)
(xiv)
acceptance of deposits and other repayable funds from the public;
lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction;
financial leasing;
all payment and money transmission services, including credit, charge and debit cards, travellers cheques and bankers drafts;
guarantees and commitments;
trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following:
(aa) money market instruments (including cheques, bills, certificates of deposits);
(bb) foreign exchange;
(cc) derivative products including, but not limited to, futures and options;
(dd) exchange rate and interest rate instruments, including products such as swaps, forward rate agreements;
(ee) transferable securities;
(ff) other negotiable instruments and financial assets, including bullion;
participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues;
money broking;
asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depositary and trust services;
settlement and clearing services for financial assets, including securities, derivative products and other negotiable instruments;
(xv) provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services;
(xvi) advisory, intermediation and other auxiliary financial services on all the activities listed in subparagraphs (v) through (xv), including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy.
(b) âfinancial service supplierâ means any natural or juridical person of a State Party wishing to supply or supplying financial services but the term âfinancial service supplierâ does not include a public entity;