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4. The arbitration panel shall consist of three members who shall be appointed in accordance with Articles 6 and 9 - 15 of the Permanent Court of Arbitration Rules 2012 (PCA Rules 2012), mutatis mutandis. The date of establishment of the arbitration panel shall be the date on which the Chairperson is appointed.
5. Each member of the arbitration panel shall:
(a) have demonstrated expertise or experience in law, international trade or other matters covered by this Agreement;
(b) be chosen strictly on the basis of objectivity, reliability, and sound judgment;
(c) be independent of, and not be affiliated with or take instructions from, a Party; and
(d) serve in their individual capacities and not take instructions from any organisation or government with regard to matters related to the dispute.
6. The Chairperson of the arbitration panel shall also have experience in dispute settlement procedures and shall not be a national of a Party, shall not be employed by a Party, or shall not have dealt with the dispute in any capacity.
7. If a member of the arbitration panel fails to participate in the arbitration or has to be replaced in the course of the arbitration proceedings, the work of the arbitration panel shall be suspended until the successor member is appointed. In such a case, any relevant period of time for the arbitration panel proceedings shall be suspended until the successor member is appointed.
8. 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 to examine complaints relating to the same matter. A single arbitration panel shall organise its examination and present its findings and recommendations, if any, to the parties to the disputes in such a manner that the rights which the parties to the disputes would have enjoyed had separate arbitration panels examined the complaints are in no way impaired.
9. If more than one arbitration panel is established to examine the complaints relating to the same matter, the parties to the dispute shall endeavour to ensure that the same individuals serve as members on each of the separate arbitration panels. The members of the arbitration panels shall consult with each other and the parties to the disputes to ensure, to the greatest extent possible, that the timetables for the arbitration panelsâ processes are harmonised.
10. | Where feasible, the arbitration panel referred to in Articles 14.10 (Implementation of the Final Panel Report) and 14.11 (Compensation and Suspension of Concessions or Other Obligations) shall comprise the same arbitrators as the original arbitration panel. Where this is not feasible, the appointment ofa replacement arbitrator shall be conducted in accordance with the selection procedure for the original arbitrator.
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Article 14.5. Third Parties
1. A Party which is not a party to the dispute but considers that it has a substantial interest in a matter before the arbitration panel may notify the parties to the dispute of its intent to participate as a Third Party no later than 10 days after the date of the request made pursuant to paragraph 1 of Article 14.4 (Establishment of Arbitration Panel). The notifying Party shall simultaneously provide a copy of the notification to the other Parties.
2. A Third Party shall have the right to: (a) make written submissions to the arbitration panel;
(b) receive written submissions, including annexes, from the parties to the dispute;
(c) attend hearings of the arbitration panel with the parties to the dispute; and
(d) â make oral statements to the arbitration panel and respond to questions from the arbitration panel.
3. Regarding any confidential information, a Third Party shall have the same rights and obligations as the parties to the dispute.
4. If a Third Party provides any submissions or other documents to the arbitration panel, it shall at the same time provide them to the parties to the dispute and any other Third Parties.
5. An arbitration panel may, with the agreement of the parties to the dispute, grant additional or supplemental rights to Third Parties regarding their participation in arbitration panel proceedings.
Article 14.6. Terms of Reference
Unless the parties to the dispute otherwise agree within 20 days from the receipt of the request for the establishment of the arbitration panel, the terms of reference for the arbitration panel shall be:
âTo examine, in light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of an arbitration panel pursuant to Article 14.4 (Establishment of Arbitration Panel), to make findings of law and fact, and determinations on whether the measure at issue is not in conformity with the Agreement or the Party complained against has otherwise failed to carry out its obligations under this Agreement together with the reasons therefor, and to issue a written report for the resolution of the dispute. The arbitration panel may make recommendations for the resolution of the dispute and the implementation of the ruling.â
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Article 14.7. Procedures of the Arbitration Panel
1. Unless otherwise specified in this Agreement or agreed between the parties to the dispute, the procedures of the arbitration panel shall be governed by Articles 5, 17, and 19 - 41 of the PCA Rules 2012, mutatis mutandis.
2. The arbitration panel shall examine the matter referred to it in the request for the establishment of an arbitration panel in light of the relevant provisions of this Agreement interpreted in accordance with the rules of interpretation of public international law.
3. The arbitration panel shall consult regularly with the parties to the dispute and provide adequate opportunities for the parties to the dispute to develop a mutually agreed solution.
4. The language of any proceedings shall be English. The venue for the hearings of the arbitration panel shall be decided by agreement between the parties to the dispute. If there is no agreement, the venue shall be decided by the arbitration panel, in consultation with the parties to the dispute. The hearings shall be open to the public to observe, unless the parties to the dispute agree otherwise at the organisational meeting referred to in paragraph 7. For discussions of any confidential information, the hearings shall be closed. The hearings shall be conducted in a manner that seeks to ensure the safety of the arbitration panel proceedings and the protection of personal data and privacy.
5. There shall be no ex parte communication with the arbitration panel concerning matters under its consideration.
6. All documents or information submitted by a party to the dispute to the arbitration panel, shall, at the same time, be transmitted by that Party to the other party to the dispute.
7. As soon as practicable after its establishment, the arbitration panel shall convene an organisational meeting with the parties to the dispute to determine the timetable of the arbitration panel proceedings and other organisational matters, including means of submission of documents related to the arbitration panel proceedings.
8. The Parties shall treat as confidential the information submitted to the arbitration panel which has been designated as confidential by the Party submitting the information.
9. The arbitration panel shall take its decision by consensus. In the event where the arbitration panel is unable to reach a consensus, it may take its decision by a majority vote. Any member may furnish separate opinions on matters not unanimously agreed. The arbitration panel shall not disclose which members are associated with majority or minority opinions.
Article 14.8. Panel Reports
1. The arbitration panel should submit an initial report containing its findings and rulings to the parties to the dispute not later than 120 days from the date of establishment
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of the arbitration panel. In cases of urgent matters, including those on perishable goods, the arbitration panel shall endeavour to submit its initial report within 60 days of the date ofits establishment. A party to the dispute may submit written comments to the arbitration panel within 15 days from the receipt of the initial report. The arbitration panel should present to the parties to the dispute a final report within 30 days from the submission of the initial report.
2. The final report, as well as any report under Articles 14.10 (Implementation of the Final Panel Report) and 14.11 (Compensation and Suspension of Concessions or Other Obligations), shall be communicated to the Parties and at any time thereafter a party to the dispute may make the final report publicly available subject to the protection of any confidential information contained in the final report.
3. Any tuling of the arbitration panel under any provision of this Chapter shall be final and binding upon the parties to the dispute.
Article 14.9. 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. Within this period, the suspended arbitration panel proceedings shall resume on request of a party to the dispute. In the event of such suspension, any relevant period of time for the arbitration panel shall be extended by the period of time that the work was suspended. 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 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 Chairperson of that arbitration panel.
3. An arbitration panel may, at any stage of the proceedings prior to release of the final report, propose that the parties to the dispute seek to settle the dispute amicably.
Article 14.10. Implementation of the Final Panel Report
1. The Party complained against shall promptly comply with the ruling in the final report. 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 final report, a party to the dispute may request the Chairperson of the arbitration panel, by way of notification to the Chairperson and the other party to the dispute, to determine the length of the reasonable period of time, in light of the particular circumstances of the case. Such a request shall be made within 120 days of the date of the issuance of the final report. The Chairperson of the arbitration panel shall present the parties to the dispute with a determination of the reasonable period of time and the reasons for such determination within 60 days from the receipt of that request by the Chairperson.
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2. The Party complained against shall notify the other party to the dispute of any measure adopted to comply with the ruling in the final report. It shall include in the notification a detailed description of how the measure ensures compliance sufficient to allow the other party to the dispute to assess the measure.
3. In case of disagreement as to the existence of a measure adopted to comply with the ruling in the final report or to the consistency of that measure with the ruling, such disagreement shall be decided by the same arbitration panel upon the request of a party to the dispute before compensation can be sought or suspension of benefits can be applied in accordance with Article 14.11 (Compensation and Suspension of Concessions or Other Obligations). The request may only be made after the expiry of the period of time established in accordance with paragraph 1 or after a notification made pursuant to paragraph 2, whichever is earlier. The ruling of the arbitration panel should be rendered within 120 days from the receipt of that request.
Article 14.11. Compensation and Suspension of Concessions or other Obligations
1. The Party complained against shall, if so requested by the complaining Party, enter into consultations with a view to agreeing on mutually acceptable compensation, if:
(a) the Party complained against does not comply with the ruling in the final panel report in accordance with paragraph 1 of Article 14.10 (Implementation of the Final Panel Report) or notifies the complaining Party that it does not intend to comply with the ruling in the final panel report; or
(b) the arbitration panel to which the matter is referred pursuant to paragraph 3 of Article 14.10 (Implementation of the Final Panel Report) rules that the Party complained against has failed to comply with the ruling in the final panel report.
2. If no such agreement has been reached within 30 days from the receipt of the request or the parties to the dispute have agreed on compensation but the Party complained against has failed to observe the terms and conditions of that agreement, the complaining Party shall be entitled to suspend the application of concessions or other obligations at a level equivalent to those affected by a measure or matter that the arbitration panel has determined not to be in conformity with the obligations under this Agreement.
3. In considering what concession or other obligations to suspend, the complaining Party should first seek to suspend concession or other obligations in the same sector or sectors as that in which the arbitration panel has determined that a measure or matter is not in conformity with the obligations under this Agreement. If the complaining Party considers that it is not practicable or effective to suspend concession or other obligations in the same sector or sectors, it may suspend concession or other obligations in other sectors.
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4. The complaining Party shall notify the Party complained against of the concession or other obligations which it intends to suspend, indicating the level of the intended suspension, the relevant sector or sectors in which it proposes to suspend such concessions or other obligations, the grounds for such suspension and when suspension will commence. The suspension may take effect 30 days after the date of the receipt of the notification. Within 20 days from the receipt of that notification, the Party complained against may request the original arbitration panel to rule on whether the proposed suspension is in accordance with paragraphs 2 and 3. The suspension shall not commence until the arbitration panel has issued its ruling or where a mutually agreed solution has been reached. The ruling of the arbitration panel should be given within 60 days from the receipt of that request.
5. Compensation and suspension of concessions or other obligations shall be temporary measures. The suspension shall only be applied 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 a mutually satisfactory solution is reached. Neither compensation nor suspension is preferred to full elimination of the non-conformity as determined in the report of the arbitration panel. Compensation is voluntary and, if granted, shall be consistent with this Agreement.
6. Upon request of a party to the dispute, the original arbitration panel shall rule on the conformity with the final report of any implementing measures adopted after the suspension of concessions or other obligations and, in light of such ruling, whether the suspension of concessions or other obligations should be terminated or modified. The ruling of the arbitration panel should be given within 30 days from the receipt of that request. If the arbitration panel determines that the Party complained against has complied with the ruling in the final panel report, the complaining Party shall promptly terminate the suspension of concessions or other obligations.
Article 14.12. Time Periods
1. Any time period mentioned in this Chapter may be modified by mutual agreement of the parties to the dispute or extended, upon request of a party to the dispute, by the arbitration panel.
2. If 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.
Article 14.13. Costs Unless the Parties to the Dispute Agree Otherwise, Each Party to the Dispute Shall
bear its own legal and other costs incurred in relation to the arbitration. Unless the parties to the dispute agree otherwise, the costs of the members of the arbitration panel and other
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expenses associated with the arbitration panel proceedings shall be borne by the parties to the dispute in equal shares.
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Chapter 15. FINAL PROVISIONS
Article 15.1. Annexes, Appendices and Footnotes
The Annexes, Appendices and footnotes to this Agreement constitute an integral part of this Agreement.
Article 15.2. Amendments
1. A Party may submit proposals for amendments to this Agreement to the Joint Committee for consideration and recommendation.
2. Any amendments to this Agreement shall be made in writing. Except as otherwise provided for in Article 13.1 (Joint Committee), amendments to this Agreement 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 Thailand have deposited their instrument of ratification, acceptance or approval with the Depositary. In relation to an EFTA State depositing its instrument of ratification, acceptance or approval after the date on which at least one EFTA State and Thailand 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 Thailand shall be agreed upon by the Parties concerned.
5. The text of the amendments and the instruments of ratification, acceptance or approval shall be deposited with the Depositary.
6. A Party may apply an amendment provisionally, subject to its domestic legal requirements. Provisional application of amendments shall be notified to the Depositary.
Article 15.3. Accession
1. Any State becoming a Member of EFTA may accede to this Agreement on terms and conditions agreed by the Parties and the acceding State.
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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 both the acceding State has deposited an instrument of accession with the Depositary indicating its acceptance of the terms and conditions and the last Party has deposited its instrument of ratification, acceptance or approval of the terms and conditions of accession with the Depositary.
Article 15.4. Withdrawal and Expiration
1. Each Party may withdraw from this Agreement by means of a written notification to the Depositary. The withdrawal shall take effect six months from the date on which the notification is received by the Depositary. If Thailand withdraws, this Agreement shall expire when its withdrawal becomes effective.
2. 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.
Article 15.5. Entry Into Force
1. This Agreement shall be subject to ratification, acceptance or approval. The instruments of ratification, acceptance or approval shall be deposited with the Depositary.
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 Thailand have deposited their instrument of ratification, acceptance or approval with the Depositary in relation to Thailand and that EFTA State.
3. In relation to an EFTA State depositing its instrument of ratification, acceptance or approval after the date on which at least one EFTA State and Thailand 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. After the entry into force of this Agreement, in accordance with paragraph 2, a Party may apply this Agreement provisionally, subject to its domestic legal requirements. Provisional application of this Agreement shall be notified to the Depositary.
Article 15.6. DepositaryThe Government of Norway Shall Act as Depositary.
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IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement.
Done at Davos, this 23 day of January 2025, in one original in English, which shall be deposited with the Depositary, who shall transmit certified copies to all the Parties.
For Iceland For the Kingdom of Thailand
For the Principality of Liechtenstein
For the Kingdom of Norway
For the Swiss Confederation
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