Title:Institutional Arrangements and Dispute Settlement proc.
Title2: Chapter 20
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:42517                                     Chapter Twenty 
 
                               Institutional Arrangements 
                           and Dispute Settlement Procedures 
 
 
                                Section A - Institutions 
 
 
            Article 2001:  The Free Trade Commission 
 
            1.   The Parties hereby establish the Free Trade Commission, 
            comprising cabinet-level representatives of the Parties or 
            their designees. 
 
            2.   The Commission shall: 
 
                 (a)  supervise the implementation of this Agreement; 
 
                 (b)  oversee its further elaboration; 
 
                 (c)  resolve disputes that may arise regarding its 
                      interpretation or application; 
 
                 (d)  supervise the work of all committees and working 
                      groups established under this Agreement, referred to 
                      in Annex 2001.2; and  
 
                 (e)  consider any other matter that may affect the 
                      operation of this Agreement. 
 
            3.   The Commission may: 
 
                 (a)  establish, and delegate responsibilities to, ad hoc 
                      or standing committees, working groups or expert 
                      groups;  
 
                 (b)  seek the advice of non-governmental persons or 
                      groups; and 
 
                 (c)  take such other action in the exercise of its 
                      functions as the Parties may agree. 
 
            4.   The Commission shall establish its rules and procedures.  
            All decisions of the Commission shall be taken by consensus, 
            except as the Commission may otherwise agree. 
 
            5.   The Commission shall convene at least once a year in 
            regular session.  Regular sessions of the Commission shall be 
            chaired successively by each Party. 
 
 
 
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            Article 2002:  The Secretariat 
 
            1.   The Commission shall establish and oversee a Secretariat 
            comprising national Sections. 
 
            2.   Each Party shall: 
 
                 (a)  establish a permanent office of its Section; 
 
                 (b)  be responsible for  
 
                      (i)  the operation and costs of its Section, and 
 
                      (ii) the remuneration and payment of expenses of 
                           panelists and members of committees and 
                           scientific review boards established under this 
                           Agreement, as set out in Annex 2002.2; 
 
                 (c)  designate an individual to serve as Secretary for its 
                      Section, who shall be responsible for its 
                      administration and management; and  
 
                 (d)  notify the Commission of the location of its 
                      Section's office. 
 
            3.   The Secretariat shall: 
 
                 (a)  provide assistance to the Commission; 
 
                 (b)  provide administrative assistance to   
 
                      (i)  panels and committees established under Chapter 
                           Nineteen (Review and Dispute Settlement in 
                           Antidumping and Countervailing Duty Matters), in 
                           accordance with the procedures established 
                           pursuant to Article 1908, and 
 
                      (ii) panels established under this Chapter, in 
                           accordance with procedures established pursuant 
                           to Article 2012; and 
 
                 (c)  as the Commission may direct 
 
                      (i)  support the work of other committees and groups 
                           established under this Agreement, and 
 
                      (ii) otherwise facilitate the operation of this 
                           Agreement. 
 
 
 
                             Section B - Dispute Settlement 
 
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            Article 2003:  Cooperation 
 
                 The Parties shall at all times endeavor to agree on the 
            interpretation and application of this Agreement, and shall 
            make every attempt through cooperation and consultations to 
            arrive at a mutually satisfactory resolution of any matter that 
            might affect its operation. 
 
 
            Article 2004:  Recourse to Dispute Settlement Procedures 
 
                 Except for the matters covered in Chapter Nineteen (Review 
            and Dispute Settlement in Antidumping and Countervailing Duty 
            Matters) and as otherwise provided in this Agreement, the 
            dispute settlement provisions of this Chapter shall apply with 
            respect to the avoidance or settlement of all disputes between 
            the Parties regarding the interpretation or application of this 
            Agreement or wherever a Party considers that an actual or 
            proposed measure of another Party is or would be inconsistent 
            with the obligations of this Agreement or cause nullification 
            or impairment in the sense of Annex 2004. 
 
 
            Article 2005:  GATT Dispute Settlement 
 
            1.   Subject to paragraphs 2, 3 and 4, disputes regarding any 
            matter arising under both this Agreement and the General 
            Agreement on Tariffs and Trade, any agreement negotiated 
            thereunder, or any successor agreement (GATT), may be settled 
            in either forum at the discretion of the complaining Party.   
 
            2.   Before a Party initiates a dispute settlement proceeding 
            in the GATT against another Party on grounds that are 
            substantially equivalent to those available to that Party under 
            this Agreement, that Party shall notify any third Party of its 
            intention.  If a third Party wishes to have recourse to dispute 
            settlement procedures under this Agreement regarding the 
            matter, it shall inform promptly the notifying Party and those 
            Parties shall consult with a view to agreement on a single 
            forum.  If those Parties cannot agree, the dispute normally 
            shall be settled under this Agreement. 
 
            3.   In any dispute referred to in paragraph 1 where the 
            responding Party claims that its action is subject to Article 
            104 (Relation to Environmental and Conservation Agreements) and 
            requests in writing that the matter be considered under this 
            Agreement, the complaining Party may, in respect of that 
            matter, thereafter have recourse to dispute settlement 
            procedures solely under this Agreement. 
 
 
 
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            4.   In any dispute referred to in paragraph 1 that arises 
            under Section B of Chapter Seven (Sanitary and Phytosanitary 
            Measures) or Chapter Nine (Standards-Related Measures): 
 
                 (a)  concerning a measure adopted or maintained by a Party 
                      to protect its human, animal or plant life or health, 
                      or to protect its environment, and 
 
                 (b)  that raises factual issues concerning the 
                      environment, health, safety or conservation, 
                      including directly related scientific matters, 
 
            where the responding Party requests in writing that the matter 
            be considered under this Agreement, the complaining Party may, 
            in respect of that matter, thereafter have recourse to dispute 
            settlement procedures solely under this Agreement. 
 
            5.   The responding Party shall deliver a copy of a request 
            made pursuant to paragraph 3 or 4 to the other Parties and to 
            its Section of the Secretariat.  Where the complaining Party 
            has initiated dispute settlement proceedings regarding any 
            matter subject to paragraph 3 or 4, the responding Party shall 
            deliver its request no later than 15 days thereafter.  On 
            receipt of such request, the complaining Party shall promptly 
            withdraw from participation in those proceedings and may 
            initiate dispute settlement procedures under Article 2007. 
 
            6.   Once dispute settlement procedures have been initiated 
            under Article 2007 or dispute settlement proceedings have been 
            initiated under the GATT, the forum selected shall be used to 
            the exclusion of the other, unless a Party makes a request 
            pursuant to paragraph 3 or 4. 
 
            7.   For purposes of this Article, dispute settlement 
            proceedings under the GATT are deemed to be initiated by a 
            Party's request for a panel, such as under Article XXIII:2 of 
            the General Agreement on Tariffs and Trade 1947, or for a 
            committee investigation, such as under Article 20.1 of the 
            Customs Valuation Code. 
 
            Consultations 
 
            Article 2006:  Consultations 
 
            1.   Any Party may request in writing consultations with any 
            other Party regarding any actual or proposed measure or any 
            other matter that it considers might affect the operation of 
            this Agreement. 
 
            2.   The requesting Party shall deliver the request to the 
            other Parties and to its Section of the Secretariat. 
 
 
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            3.   Unless the Commission otherwise provides in its rules and 
            procedures established under Article 2001(4), a third Party 
            that considers it has a substantial interest in the matter 
            shall be entitled to participate in the consultations on 
            delivery of written notice to the other Parties and to its 
            Section of the Secretariat. 
 
            4.   Consultations on matters regarding perishable agricultural 
            goods shall commence within 15 days of the date of delivery of 
            the request. 
 
            5.   The consulting Parties shall make every attempt to arrive 
            at a mutually satisfactory resolution of any matter through 
            consultations under this Article or other consultative 
            provisions of this Agreement.  To this end, the consulting 
            Parties shall: 
 
                 (a)  provide sufficient information to enable a full 
                      examination of how the actual or proposed measure or 
                      other matter might affect the operation of this 
                      Agreement; 
 
                 (b)  treat any confidential or proprietary information 
                      exchanged in the course of consultations on the same 
                      basis as the Party providing the information; and 
 
                 (c)  seek to avoid any resolution that adversely affects 
                      the interests under this Agreement of any other 
                      Party. 
 
            Initiation of Procedures 
 
            Article 2007:  Commission - Good Offices, Conciliation and 
                           Mediation 
 
            1.   If the consulting Parties fail to resolve a matter 
            pursuant to Article 2006 within: 
 
                 (a)  30 days of delivery of a request for consultations, 
 
                 (b)  45 days of delivery of such request if any other 
                      Party has subsequently requested or has participated 
                      in consultations regarding the same matter, 
 
                 (c)  15 days of delivery of a request for consultations in 
                      matters regarding perishable agricultural goods, or 
 
                 (d)  such other period as they may agree, 
 
            any such Party may request in writing a meeting of the 
            Commission. 
 
 
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            2.   A Party may also request in writing a meeting of the 
            Commission where: 
 
                 (a)  it has initiated dispute settlement proceedings under 
                      the GATT regarding any matter subject to Article 
                      2005(3) or (4), and has received a request pursuant 
                      to Article 2005(5) for recourse to dispute settlement 
                      procedures under this Chapter; or 
 
                 (b)  consultations have been held pursuant to Article 513 
                      (Working Group on Rules of Origin), Article 723 
                      (Sanitary and Phytosanitary Measures - Technical 
                      Consultations) and Article 914 (Standards-Related 
                      Measures - Technical Consultations).  
 
            3.   The requesting Party shall state in the request the 
            measure or other matter complained of and indicate the 
            provisions of this Agreement that it considers relevant, and 
            shall deliver the request to the other Parties and to its 
            Section of the Secretariat. 
 
            4.   Unless it decides otherwise, the Commission shall convene 
            within 10 days of delivery of the request and shall endeavor to 
            resolve the dispute promptly. 
 
            5.   The Commission may: 
 
                 (a)  call on such technical advisers or create such 
                      working groups or expert groups as it deems 
                      necessary, 
 
                 (b)  have recourse to good offices, conciliation, 
                      mediation or such other dispute resolution 
                      procedures, or 
 
                 (c)  make recommendations,  
 
            as may assist the consulting Parties to reach a mutually 
            satisfactory resolution of the dispute. 
 
            6.   Unless it decides otherwise, the Commission shall 
            consolidate two or more proceedings before it pursuant to this 
            Article regarding the same measure.  The Commission may 
            consolidate two or more proceedings regarding other matters 
            before it pursuant to this Article that it determines are 
            appropriate to be considered jointly. 
 
            Panel Proceedings 
 
 
 
 
 
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            Article 2008:  Request for an Arbitral Panel 
 
            1.   If the Commission has convened pursuant to Article 
            2007(4), and the matter has not been resolved within: 
 
                 (a)  30 days thereafter, 
 
                 (b)  30 days after the Commission has convened in respect 
                      of the matter most recently referred to it, where 
                      proceedings have been consolidated pursuant to 
                      Article 2007(6), or 
 
                 (c)  such other period as the consulting Parties may 
                      agree, 
 
            any consulting Party may request in writing the establishment 
            of an arbitral panel.  The requesting Party shall deliver the 
            request to the other Parties and to its Section of the 
            Secretariat.  
 
            2.   On delivery of the request, the Commission shall establish 
            an arbitral panel.  
 
            3.   A third Party that considers it has a substantial interest 
            in the matter shall be entitled to join as a complaining Party 
            on delivery of written notice of its intention to participate 
            to the disputing Parties and its Section of the Secretariat.  
            The notice shall be delivered at the earliest possible time, 
            and in any event no later than seven days after the date of 
            delivery of a request by a Party for the establishment of a 
            panel. 
 
            4.   If a third Party does not join as a complaining Party in 
            accordance with paragraph 3, it normally shall refrain 
            thereafter from initiating or continuing: 
 
                 (a)  a dispute settlement procedure under this Agreement, 
                      or  
 
                 (b)  a dispute settlement proceeding in the GATT on 
                      grounds that are substantially equivalent to those 
                      available to that Party under this Agreement, 
 
            regarding the same matter in the absence of a significant 
            change in economic or commercial circumstances. 
 
            5.   Unless otherwise agreed by the disputing Parties, the 
            panel shall be established and perform its functions in a 
            manner consistent with the provisions of this Chapter. 
 
 
 
 
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            Article 2009:  Roster 
 
            1.   The Parties shall establish by January 1, 1994 and 
            maintain a roster of up to 30 individuals who are willing and 
            able to serve as panelists.  The roster members shall be 
            appointed by consensus for terms of three years, and may be 
            reappointed. 
 
            2.   Roster members shall: 
 
                 (a)  have expertise or experience in law, international 
                      trade, other matters covered by this Agreement or the 
                      resolution of disputes arising under international 
                      trade agreements, and shall be chosen strictly on the 
                      basis of objectivity, reliability and sound judgment; 
 
                 (b)  be independent of, and not be affiliated with or take 
                      instructions from, any Party; and 
 
                 (c)  comply with a code of conduct to be established by 
                      the Commission. 
 
 
            Article 2010:  Qualifications of Panelists 
 
            1.   All panelists shall meet the qualifications set out in 
            Article 2009(2). 
 
            2.   Individuals may not serve as panelists for a dispute in 
            which they have participated pursuant to Article 2007(5). 
 
 
            Article 2011:  Panel Selection 
 
            1.   Where there are two disputing Parties, the following 
            procedures shall apply: 
 
                 (a)  The panel shall comprise five members. 
 
                 (b)  The disputing Parties shall endeavor to agree on the 
                      chair of the panel within 15 days of the delivery of 
                      the request for the establishment of the panel.  If 
                      the disputing Parties are unable to agree on the 
                      chair within this period, the disputing Party chosen 
                      by lot shall select within five days as chair an 
                      individual who is not a citizen of that Party. 
 
                 (c)  Within 15 days of selection of the chair, each 
                      disputing Party shall select two panelists who are 
                      citizens of the other disputing Party. 
 
 
 
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                 (d)  If a disputing Party fails to select its panelists 
                      within such period, such panelists shall be selected 
                      by lot from among the roster members who are citizens 
                      of the other disputing Party. 
 
            2.   Where there are more than two disputing Parties, the 
            following procedures shall apply: 
 
                 (a)  The panel shall comprise five members. 
 
                 (b)  The disputing Parties shall endeavor to agree on the 
                      chair of the panel within 15 days of the delivery of 
                      the request for the establishment of the panel.  If 
                      the disputing Parties are unable to agree on the 
                      chair within this period, the Party or Parties on the 
                      side of the dispute chosen by lot shall select within 
                      10 days a chair who is not a citizen of such Party or 
                      Parties. 
 
                 (c)  Within 15 days of selection of the chair, the Party 
                      complained against shall select two panelists, one of 
                      whom is a citizen of a complaining Party, and the 
                      other of whom is a citizen of another complaining 
                      Party.  The complaining Parties shall select two 
                      panelists who are citizens of the Party complained 
                      against. 
 
                 (d)  If any disputing Party fails to select a panelist 
                      within such period, such panelist shall be selected 
                      by lot in accordance with the citizenship criteria of 
                      subparagraph (c). 
 
            3.   Panelists shall normally be selected from the roster.  Any 
            disputing Party may exercise a peremptory challenge against any 
            individual not on the roster who is proposed as a panelist by a 
            disputing Party within 15 days after the individual has been 
            proposed. 
 
            4.   If a disputing Party believes that a panelist is in 
            violation of the code of conduct, the disputing Parties shall 
            consult and if they agree, the panelist shall be removed and a 
            new panelist shall be selected in accordance with this Article. 
 
 
            Article 2012:  Rules of Procedure 
 
            1.   The Commission shall establish by January 1, 1994 Model 
            Rules of Procedure, in accordance with the following 
            principles: 
 
                 (a)  the procedures shall assure a right to at least one 
                      hearing before the panel as well as the opportunity 
 
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                      to provide initial and rebuttal written submissions; 
                      and 
 
                 (b)  the panel's hearings, deliberations and initial 
                      report, and all written submissions to and 
                      communications with the panel shall be confidential.  
 
 
            2.   Unless the disputing Parties otherwise agree, the panel 
            shall conduct its proceedings in accordance with the Model 
            Rules of Procedure. 
 
            3.   Unless the disputing Parties otherwise agree within 20 
            days from the date of the delivery of the request for the 
            establishment of the panel, the terms of reference shall be:   
 
                 "To examine, in the light of the relevant provisions 
                 of the Agreement, the matter referred to the 
                 Commission (as set out in the request for a 
                 Commission meeting) and to make findings, 
                 determinations and recommendations as provided in 
                 Article 2016(2)." 
 
            4.   If a complaining Party wishes to argue that a matter has 
            nullified or impaired benefits, the terms of reference shall so 
            indicate. 
 
            5.   If a disputing Party wishes the panel to make findings as 
            to the degree of adverse trade effects on any Party of any 
            measure found not to conform with the obligations of the 
            Agreement or to have caused nullification or impairment in the 
            sense of Annex 2004, the terms of reference shall so indicate. 
 
 
            Article 2013:  Third Party Participation 
 
                 A Party that is not a disputing Party, on delivery of a 
            written notice to the disputing Parties and to its Section of 
            the Secretariat, shall be entitled to attend all hearings, to 
            make written and oral submissions to the panel and to receive 
            written submissions of the disputing Parties. 
 
 
            Article 2014:  Role of Experts 
 
                 On request of a disputing Party, or on its own initiative, 
            the panel may seek information and technical advice from any 
            person or body that it deems appropriate, provided that the 
            disputing Parties so agree and subject to such terms and 
            conditions as such Parties may agree. 
 
 
 
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            Article 2015:  Scientific Review Boards 
 
            1.   On request of a disputing Party or, unless the disputing 
            Parties disapprove, on its own initiative, the panel may 
            request a written report of a scientific review board on any 
            factual issue concerning environmental, health, safety or other 
            scientific matters raised by a disputing Party in a proceeding, 
            subject to such terms and conditions as such Parties may agree. 
 
            2.   The board shall be selected by the panel from among highly 
            qualified, independent experts in the scientific matters, after 
            consultations with the disputing Parties and the scientific 
            bodies set out in the Model Rules of Procedure established 
            pursuant to Article 2012(1).  
 
            3.   The participating Parties shall be provided:  
 
                 (a)  advance notice of, and an opportunity to provide 
                      comments to the panel on, the proposed factual issues 
                      to be referred to the board; and 
 
                 (b)  a copy of the board's report and an opportunity to 
                      provide comments on the report to the panel. 
 
            4.   The panel shall take the board's report and any comments 
            by the Parties on the report into account in the preparation of 
            its report. 
 
 
            Article 2016:  Initial Report 
 
            1.   Unless the disputing Parties otherwise agree, the panel 
            shall base its report on the submissions and arguments of the 
            Parties and on any information before it pursuant to Article 
            2014 or 2015. 
 
            2.   Unless the disputing Parties otherwise agree, the panel 
            shall, within 90 days after the last panelist is selected or 
            such other period as the Model Rules of Procedure established 
            pursuant to Article 2012(1) may provide, present to the 
            disputing Parties an initial report containing: 
 
                 (a)  findings of fact, including any findings pursuant to 
                      a request under Article 2012(5);  
 
                 (b)  its determination as to whether the measure at issue 
                      is or would be inconsistent with the obligations of 
                      this Agreement or cause nullification or impairment 
                      in the sense of Annex 2004, or any other 
                      determination requested in the terms of reference; 
                      and 
 
 
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                 (c)  its recommendations, if any, for resolution of the 
                      dispute. 
 
            3.   Panelists may furnish separate opinions on matters not 
            unanimously agreed.  
 
            4.   A disputing Party may submit written comments to the panel 
            on its initial report within 14 days of presentation of the 
            report. 
 
            5.   In such an event, and after considering such written 
            comments, the panel, on its own initiative or on the request of 
            any disputing Party, may: 
 
                 (a)  request the views of any participating Party; 
 
                 (b)  reconsider its report; and 
 
                 (c)  make any further examination that it considers 
                      appropriate. 
 
 
            Article 2017:  Final Report 
 
            1.   The panel shall present to the disputing Parties a final 
            report, including any separate opinions on matters not 
            unanimously agreed, within 30 days of presentation of the 
            initial report, unless the disputing Parties otherwise agree. 
 
            2.    No panel may, either in its initial report or its final 
            report, disclose which panelists are associated with majority 
            or minority opinions. 
 
            3.   The disputing Parties shall transmit to the Commission the 
            final report of the panel, including any report of a scientific 
            review board established under Article 2015, as well as any 
            written views that a disputing Party desires to be appended, on 
            a confidential basis within a reasonable period of time after 
            it is presented to them. 
 
            4.   Unless the Commission decides otherwise, the final report 
            of the panel shall be published 15 days after it is transmitted 
            to the Commission. 
 
            Implementation of Panel Reports 
 
            Article 2018:  Implementation of Final Report 
 
            1.   On receipt of the final report of a panel, the disputing 
            Parties shall agree on the resolution of the dispute, which 
            normally shall conform with the determinations and 
 
 
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            recommendations of the panel, and shall notify their Sections 
            of the Secretariat of any agreed resolution of any dispute. 
 
            2.   Wherever possible, the resolution shall be 
            non-implementation or removal of a measure not conforming with 
            this Agreement or causing nullification or impairment in the 
            sense of Annex 2004 or, failing such a resolution, 
            compensation. 
 
 
            Article 2019:  Non-Implementation - Suspension of Benefits 
 
            1.   If in its final report a panel has determined that a 
            measure is inconsistent with the obligations of this Agreement 
            or causes nullification or impairment in the sense of Annex 
            2004 and the Party complained against has not reached agreement 
            with any complaining Party on a mutually satisfactory 
            resolution pursuant to Article 2018(1) within 30 days of 
            receiving the final report, such complaining Party may suspend 
            the application to the Party complained against of benefits of 
            equivalent effect until such time as they have reached 
            agreement on a resolution of the dispute. 
 
            2.   In considering what benefits to suspend pursuant to 
            paragraph 1: 
 
                 (a)  a complaining Party should first seek to suspend 
                      benefits in the same sector or sectors as that 
                      affected by the measure or other matter that the 
                      panel has found to be inconsistent with the 
                      obligations of this Agreement or to have caused 
                      nullification or impairment in the sense of Annex 
                      2004; and  
 
                 (b)  a complaining Party that considers it is not 
                      practicable or effective to suspend benefits in the 
                      same sector or sectors may suspend benefits in other 
                      sectors. 
 
            3.   On the written request of any disputing Party delivered to 
            the other Parties and its Section of the Secretariat, the 
            Commission shall establish a panel to determine whether the 
            level of benefits suspended by a Party pursuant to paragraph 1 
            is manifestly excessive. 
 
            4.   The panel proceedings shall be conducted in accordance 
            with the Model Rules of Procedure.  The panel shall present its 
            determination within 60 days after the last panelist is 
            selected or such other period as the disputing Parties may 
            agree.   
 
 
 
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                            Section C - Domestic Proceedings 
                       and Private Commercial Dispute Settlement 
 
 
            Article 2020:  Referrals of Matters from Judicial or 
                           Administrative Proceedings 
 
            1.   If an issue of interpretation or application of this 
            Agreement arises in any domestic judicial or administrative 
            proceeding of a Party that any Party considers would merit its 
            intervention, or if a court or administrative body solicits the 
            views of a Party, that Party shall notify the other Parties and 
            its Section of the Secretariat.  The Commission shall endeavor 
            to agree on an appropriate response as expeditiously as 
            possible. 
 
            2.   The Party in whose territory the court or administrative 
            body is located shall submit any agreed interpretation of the 
            Commission to the court or administrative body in accordance 
            with the rules of that forum. 
 
            3.   If the Commission is unable to agree, any Party may submit 
            its own views to the court or administrative body in accordance 
            with the rules of that forum. 
 
 
            Article 2021:  Private Rights 
 
                 No Party may provide for a right of action under its 
            domestic law against any other Party on the ground that a 
            measure of another Party is inconsistent with this Agreement. 
 
 
            Article 2022:  Alternative Dispute Resolution 
 
            1.   Each Party shall, to the maximum extent possible, 
            encourage and facilitate the use of arbitration and other means 
            of alternative dispute resolution for the settlement of 
            international commercial disputes between private parties in 
            the free trade area. 
 
            2.   To this end, each Party shall provide appropriate 
            procedures to ensure observance of agreements to arbitrate and 
            for the recognition and enforcement of arbitral awards in such 
            disputes. 
 
            3.   A Party shall be deemed to be in compliance with paragraph 
            2 if it is a party to and is in compliance with the 1958 United 
            Nations Convention on the Recognition and Enforcement of 
            Foreign Arbitral Awards or the 1975 Inter-American Convention 
            on International Commercial Arbitration. 
 
 
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            4.   The Commission shall establish an Advisory Committee on 
            Private Commercial Disputes comprising persons with expertise 
            or experience in the resolution of private international 
            commercial disputes.  The Committee shall report and provide 
            recommendations to the Commission on general issues referred to 
            it by the Commission respecting the availability, use and 
            effectiveness of arbitration and other procedures for the 
            resolution of such disputes in the free trade area. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                                               Annex 2001.2                                             
                  ____________ 
 
 
                                      Annex 2001.2 
 
                             Committees and Working Groups 
 
 
            A.   Committees: 
 
                 1.   Committee on Trade in Goods (Article 316) 
 
                 2.   Committee on Trade in Worn Clothing (Annex 300-B, 
                      Section 9.1) 
 
                 3.   Committee on Agricultural Trade (Article 706) 
 
                      -    Advisory Committee on Private Commercial 
                           Disputes Regarding Agricultural Goods (Article 
                           707) 
 
                 4.   Committee on Sanitary and Phytosanitary Measures 
                      (Article 722) 
 
                 5.   Committee on Standards-Related Measures (Article 913) 
 
                      -    Land Transportation Standards Subcommittee 
                           (Article 913(5)) 
 
                      -    Telecommunications Standards Subcommittee 
                           (Article 913(5))  
 
                      -    Automotive Standards Council (Article 913(5)) 
 
                      -    Subcommittee on Labelling of Textile and Apparel 
                           Goods (Article 913(5)) 
 
                 6.   Committee on Small Business (Article 1021) 
 
                 7.   Financial Services Committee (Article 1412) 
 
                 8.   Advisory Committee on Private Commercial Disputes 
                      (Article 2022(4)) 
 
 
 
 
 
 
 
 
 
 
                                         20-16  
 
 
 
 
 
 
  
 
 
 
 
 
                                                               Annex 2001.2                                             
                  ____________ 
 
 
            B.   Working Groups: 
 
                 1.   Working Group on Rules of Origin (Article 513) 
 
                      -    Customs Subgroup (Article 513(6)) 
 
                 2.   Working Group on Agricultural Subsidies (Article 
                      705(6)) 
 
                 3.   Bilateral Working Group (Mexico - United States) 
                      (Annex 703.2(A)(25)) 
 
                 4.   Bilateral Working Group (Canada - Mexico) (Annex 
                      703.2(B)(13)) 
 
                 5.   Working Group on Trade and Competition (Article 1504) 
 
                 6.   Temporary Entry Working Group (Article 1605) 
 
 
            C.   Other Committees and Working Groups Established under this 
                 Agreement 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                         20-17  
 
 
 
 
 
 
  
 
 
 
 
 
                                                               Annex 2002.2                                             
                  ____________ 
 
 
                                      Annex 2002.2 
 
                          Remuneration and Payment of Expenses 
 
 
            1.   The Commission shall establish the amounts of remuneration 
            and expenses that will be paid to the panelists, committee 
            members and members of scientific review boards. 
 
            2.   The remuneration of panelists or committee members and 
            their assistants, members of scientific review boards, their 
            travel and lodging expenses, and all general expenses of 
            panels, committees or scientific review boards shall be borne 
            equally by: 
 
                 (a)  in the case of panels or committees established under 
                      Chapter Nineteen (Review and Dispute Settlement in 
                      Antidumping and Countervailing Duty Matters), the 
                      involved Parties, as they are defined in Article 
                      1911; or 
 
                 (b)  in the case of panels and scientific review boards 
                      established under this Chapter, the disputing 
                      Parties. 
 
            3.   Each panelist or committee member shall keep a record and 
            render a final account of the person's time and expenses, and 
            the panel, committee or scientific review board shall keep a 
            record and render a final account of all general expenses.  The 
            Commission shall establish amounts of remuneration and expenses 
            that will be paid to panelists and committee members. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                         20-18  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                 Annex 2004                                              
                   __________ 
 
 
                                       Annex 2004 
 
                              Nullification and Impairment 
 
 
            1.   If any Party considers that any benefit it could 
            reasonably have expected to accrue to it under any provision 
            of: 
 
                 (a)  Part Two (Trade in Goods), except for those 
                      provisions of Annex 300-A (Automotive Sector) or 
                      Chapter Six (Energy) relating to investment, 
 
                 (b)  Part Three (Technical Barriers to Trade), 
 
                 (c)  Chapter Twelve (Cross-Border Trade in Services), or 
 
                 (d)  Part Six (Intellectual Property), 
 
            is being nullified or impaired as a result of the application 
            of any measure that is not inconsistent with this Agreement, 
            the Party may have recourse to dispute settlement under this 
            Chapter. 
 
            2.   A Party may not invoke: 
 
                 (a)  paragraph 1(a) or (b), to the extent that the benefit 
                      arises from any cross-border trade in services 
                      provision of Part Two, or 
 
                 (b)  paragraph 1(c) or (d),  
 
            with respect to any measure subject to an exception under 
            Article 2101 (General Exceptions).  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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