# EUR-Lex - 52014PC0237 - EN

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# 52014PC0237

**Proposal for a COUNCIL DECISION on a position to be taken by the European Union within the Association Council set up by the Association Agreement between the European Union and its Member States, of the one part, and Central America, of the other part, as regards the adoption of decisions in the Association Council on the Rules of Procedure of the Association Council and those of the Association Committee, on the Rules of Procedure governing Dispute Settlement under Title X and the Code of Conduct for members of panels and mediators, on the List of Panellists and on the List of Trade and Sustainable Development Experts /* COM/2014/0237 final - 2014/0130 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

The Association
Agreement between the European Union and its Member States, of the one part,
and Central America, of the other part (hereinafter referred to as
"Agreement") was signed on 29 June 2012, and it has been
provisionally applied since 1 August 2013 with Nicaragua, Honduras and Panama,
since 1st October 2013 with El Salvador and Costa Rica and since 1st
December 2013 with Guatemala.

Article 5(2) of
the Agreement stipulates that the Association Council shall adopt its own Rules
of Procedure.

Article 7(3) of
the Agreement stipulates that the Association Council shall adopt the Rules of
Procedure of the Association Committee.

Article 8(6) of
the Agreement stipulates that the Association Council shall adopt the Rules of
Procedure of the Subcommittees.

Article 297(2)
stipulates that the Association Council shall endorse a list of a list of
seventeen experts with expertise in environmental law, international trade or
the resolution of disputes arising under international agreements and a list of
seventeen experts with expertise in labour law, international trade or the
resolution of disputes arising under international agreements.

Article 325(1)
stipulates that the Association Council shall establish a list of thirty six
individuals who are willing and able to serve as panellists in the meaning of
Title X of Part IV of the Agreement on dispute settlement.

Article 328(1)
stipulates that the Association Council shall adopt rules of procedure as well
as a code of conduct, governing dispute settlement under Title X of the
Agreement,

The attached
proposal constitutes the proposal for a Council decision approving the position
that the European Union will be taking in the Association Council on the above
mentioned issues.

2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES

The Rules of Procedure of the Association
Council and those of the Association Committee, the Rules of Procedure
governing Dispute Settlement under Title X and the Code of Conduct for members
of panels and mediators, the list of panellists and the list of Trade and
Sustainable Development experts have been previously discussed and agreed with Central
America in the framework of the preparation of the first Association Council
for the implementation of the Agreement. The discussions started before the Agreement
was provisionally applied in March 2013. They could, however, only be finalised
after the Agreement was provisionally applied also with the whole region in
December 2013. The final text of this proposal is the result of these detailed discussions.

On 30 July 2010 (TPC note m.d. 452/10) the
Commission asked the Member States to submit candidates for the establishment
of the Dispute Settlement rosters. The proposed EU individuals to serve as
arbitrators or experts on the Trade and Sustainable Development Title for this
Agreement have been chosen from the nominations that were sent by the Member
States.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 217 in conjunction
with Article 218(9) thereof, the Commission is submitting a proposal to the
Council for a decision on establishing the position to be adopted on the
Union’s behalf in the Association Council set up by this Agreement.

2014/0130 (NLE)

Proposal for a

COUNCIL DECISION

on a position to be taken by the European
Union within the Association Council set up by the Association Agreement
between the European Union and its Member States, of the one part, and Central
America, of the other part, as regards the adoption of decisions in the
Association Council on the Rules of Procedure of the Association Council and
those of the Association Committee, on the Rules of Procedure governing Dispute
Settlement under Title X and the Code of Conduct for members of panels and
mediators, on the List of Panellists and on the List of Trade and Sustainable
Development Experts

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 217 in conjunction
with Article 218(9) thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)       On 23 April 2007, the
Council authorised the Commission to negotiate an Association Agreement on
behalf of the European Union and its Member States with Central America. The
negotiating directives were amended on 10 March 2010 to include Panama in the negotiation process.

(2)       These negotiations were concluded
at the occasion of the EU-Latin American and Carribean Summit in Madrid in May 2010.

(3)       The Association Agreement
between the European Union and its Member States, of the one part, and Central America, of the other part (hereinafter referred to as ‘the Agreement’)[1] was initialled on 22
March 2011 and signed on 29 June 2012.

(4)       Pursuant to Article 353(4)
of the Agreement, the Agreement has been provisionally applied since 1 August
2013 with Nicaragua, Honduras and Panama, since 1st October 2013 with El Salvador and Costa Rica and since 1st December 2013 with Guatemala.

(5)       Article 4 of the Agreement
establishes an Association Council, which shall oversee the fulfilment of the
objectives of this Agreement and supervise its implementation.

(6)       Article 6 of the Agreement
stipulates that the Association Council shall have the power to take decisions
in the cases provided for in this Agreement in order to attain the objectives
of this Agreement.

(7)       Article 5(2) of the
Agreement stipulates that the Association Council shall adopt its own Rules of
Procedure.

(8)       Article 7(3) of the
Agreement stipulates that the Association Council shall adopt the Rules of
Procedure of the Association Committee.

(9)       Article 8(6) of the
Agreement stipulates that the Association Council shall adopt the Rules of
Procedure of the Subcommittees.

(10)     Article 297(2) stipulates
that the Association Council shall endorse a list of a list of seventeen
experts with expertise in environmental law, international trade or the
resolution of disputes arising under international agreements and a list of
seventeen experts with expertise in labour law, international trade or the
resolution of disputes arising under international agreements.

(11)     Article 325(1) stipulates
that the Association Council shall establish a list of thirty six individuals who
are willing and able to serve as panellists in the meaning of Title X of the
Agreement on Dispute Settlement.

(12)     Article 328(1) stipulates
that the Association Council shall adopt rules of procedure as well as a code
of conduct, governing Dispute Settlement under Title X of the Agreement.

(13)     The Union should determine
the position to be taken as regards the adoption of the Rules of Procedure of
the Association Council and those of the Association Committee, the Rules of
Procedure governing Dispute Settlement under Title X and the Code of Conduct
for members of panels and mediators, the list of panellists as well as the list
of Trade and Sustainable Development experts,

HAS ADOPTED THIS DECISION:

Article 1

The position to be taken by the European
Union in the Association Council, set up by the Association Agreement between
the European Union and its Member States, of the one part, and Central America,
of the other part, as regards the adoption of the Rules of Procedure of the
Association Council and those of the Association Committee, the Rules of
Procedure governing Dispute Settlement under Title X and the Code of Conduct
for members of panels and mediators, the list of panellists as well as the list
of Trade and Sustainable Development experts shall be based on the draft
decisions of the Association Council annexed to this Decision.

Minor changes to the draft Association
Council Decisions may be agreed to by the representatives of the Union in the Association Council without further decision of the Council.

Article 2

After its adoption, the Decision of the
Association Council shall be published in the Official Journal of the
European Union.

Article 3

This Decision shall enter into force on the date of its adoption.

Done at Brussels,

For
the Council

The
President

[1]               OJ L346, 15.12.2012.

ANNEX I

DECISION
No 1/[...] OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL

of
[...]

adopting
its Rules of Procedure and those of the Association Committee

THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL,

Having regard to the Association Agreement
between the European Union and its Member States, on the one hand, and Central
America, on the other, (hereinafter referred to as ‘the Agreement’) and in
particular Article 4, 5(2), 7(3) and 8(6), thereof,

Whereas:

(1)          Pursuant to Article
353(4), Part IV of the Agreement has been applied since 1 August 2013 with Nicaragua, Honduras and Panama, since 1st October 2013 with El Salvador and Costa Rica and since 1st December 2013 with Guatemala.

(2)          In order to contribute to
the effective implementation of the Agreement, its institutional framework
should be established as soon as possible.

(3)          Save as otherwise
specified in the Agreement, it is for the Association Council to supervise the
implementation of the Agreement and to establish its own rules of procedure as
well as those of the Association Committee and Sub Committees,

HAS DECIDED AS FOLLOWS:

Sole Article

The Rules of Procedure of the Association
Council and those of the Association Committee and the Sub-Committees, as set
out in Annexes A and B respectively, are hereby adopted.

This decision shall enter into force on the
date of its adoption,

Done at ..., xxxx.

For the EU-Central America Association
Council

[...] For Costa Rica || [...] For El Salvador || [...] For Guatemala ||

||

[...] For Honduras || [...] For Nicaragua [...] For the European Union || [...] For Panama

ANNEX
A to DECISION No 1/[...] OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL

of
[...]

Rules of Procedure of the Association Council

Article 1

Composition

1.           The Association Council
that is established in accordance with Article 4(1) of the Association
Agreement between the European Union and its Member States, of the one hand,
and Central America, of the other (hereinafter referred to as the “Agreement”)
shall perform its duties as provided for in Article 4(2) of the Agreement and
take responsibility for general implementation of the Agreement, as well as any
other bilateral, multilateral or international question of common interest.

2.           As provided for in
Articles 5 and 345 of the Agreement, the Association Council shall be composed
of representatives of the European Union and representatives of each of the
Republics of the CA Party, at ministerial level as appropriate and taking into
consideration the specific issues to be addressed at any given session.

3.           Pursuant to Article 345 of
the Agreement, when the Association Council performs exclusively or principally
the tasks conferred upon it in Part IV of the Agreement, it shall be composed
of representatives of the EU Party and the Ministers of each of the Republics
of the CA Party with
responsibility for trade-related matters.

4.           As provided for in Article
352(3) of the Agreement, the Republics of the CA Party shall act collectively
in the decision making of the institutional framework of the Agreement; the
adoption of decisions and recommendations shall require their consensus.

5.           Any Parties to the
Agreement having completed the procedure laid down in Article 353(2) or 353(4),
shall become Members of the Association Council.

6.           The Association Council
shall grant the status of observers to any Parties to the Agreement not having
completed the procedure laid down in Article 353(2) or 353(4).

7.           Reference to the Parties
in these Rules of Procedure is in accordance with the definition provided for
in Article 352 of the Agreement.

Article 2

Chairmanship

The EU Party and the CA Party shall hold
the Chair of the Association Council, alternately, for a period of 12 months.
The Chair shall be a Member of the Association Council. The first period shall
begin on the date of the first Association Council meeting and end on 31
December of the same year.

Article 3

Meetings

1.           The Association Council
shall meet regularly at a period not exceeding two years. Special sessions of
the Association Council may be held if the Parties so agree, at the request of
a Party.

2.           Each session of the
Association Council shall be held where appropriate and at a date agreed by the
Parties.

3.           The meetings of the
Association Council shall be jointly convened by the Secretaries of the
Association Council, in agreement with the Chair of the Association Council.

4.           By way of exception, and
if the Parties agree, the meetings of the Association Council may be held by
technological means, such as video-conference.

Article 4

Representation

1.           The members of the
Association Council may be represented if unable to attend. If a member wishes
to be so represented, he or she must notify in writing to the Chair, of the
name of his or her representative before the meeting at which he or she is to
be so represented.

2.           The representative of a
member of the Association Council shall exercise all the rights of that member.

Article 5

Delegations

1.           The members of the
Association Council may be accompanied by officials. Before each meeting, the
Chairman shall be informed, through the Secretariat, of the intended
composition of the delegation of each Party.

2.           The Association Council
may, by agreement between the Parties, invite non-members to attend its
meetings as observers or in order to provide information on particular
subjects.

Article 6

Secretariat

An official of the EU Party and an official
of the CA Party shall act jointly as Secretaries of the Association Council.

Article 7

Correspondence

1.           Correspondence addressed
to the Association Council shall be directed to the Secretary of either the EU
Party or of the Republic of the CA Party, which in turn will inform the other
Secretary.

2.           The Secretariat shall
ensure that correspondence is forwarded to the Chair and, where appropriate,
circulated to the other members of the Association Council.

3.           The Secretariat shall send
the correspondence to the General Secretariat of the European Commission, the
European External Action Service, the Permanent Representations of the Member
States and to the General Secretariat of the Council of the European Union, as
well as to the Embassies of the Republics of the CA Party established in
Brussels, Belgium, with copy, as applicable, to the ministries responsible of
foreign affairs or the ministries responsible for trade-related matters.

4.           Communications from the
Chair of the Association Council shall be sent to the addressees by the
Secretariat and circulated, where appropriate, to the other members of the
Association Council at the addresses indicated in the third paragraph.

Article 8

Confidentiality

1.           Unless otherwise decided,
the meetings of the Association Council shall not be public.

2.           When a Party submits to
the Association Council information designated as confidential, the other Party
shall treat that information in respect of the procedure described in Article
336(2) of the Agreement.

3.           Each Party may decide on
the publication of the decisions and recommendations of the Association Council
in its respective official publication.

Article 9

Agendas
for the meetings

1.           The Chair shall draw up a
provisional agenda for each meeting. It shall be dispatched by the Secretaries
of the Association Council to the addressees referred to in Article 7 not later
than 15 calendar days before the beginning of the meeting.

The provisional agenda shall include the items
in respect of which the Chair has received a request for inclusion in the
agenda not later than 21 calendar days before the beginning of the meeting,
save that such items shall not be written into the provisional agenda the
supporting documentation for which has not been forwarded to the Secretaries
not later than the date of dispatch of the agenda.

2.           The agenda shall be
adopted by the Association Council at the beginning of each meeting. An item
other than those appearing on the provisional agenda may be placed on the
agenda if the Parties so agree.

3.           The Chair may reduce, in
consultation with the Parties, the time periods specified in paragraph 1 in
order to take account of the requirements of a particular case.

Article 10

Minutes

1.           Draft minutes of each
meeting shall be drawn up jointly by the two Secretaries.

2.           The minutes shall, as a
general rule, indicate in respect of each item on the agenda:

(a)     the documentation submitted to the
Association Council;

(b)     statements which a member of the
Association Council has asked to be entered; and

(c)     issues agreed to by the Parties, such
as decisions adopted, the statements agreed upon and any conclusions, among
others.

3.           The draft minutes shall be
submitted to the Association Council for approval. They shall be approved
within 45 calendar days after each Association Council meeting. Once approved,
the minutes shall be signed by the Chair and the two Secretaries. A certified
true copy shall be forwarded to each of the addressees referred to in Article
7.

Article 11

Decisions
and recommendations

1.           The Association Council
shall take decisions and make recommendations by mutual agreement between the
Parties which shall be signed by each of the Members during the Association
Council meetings. Observers shall not take part in the decision making of the
Association Council.

2.           The Association Council
may also take decisions or make recommendations by written procedure if the
Parties so agree. For this purpose, the text of the proposal shall be
circulated in writing by the Chair of the Association Council to its Members
and Observers pursuant to Article 7, with a time limit of no less than 21
calendar days within which Members must make known any reservations or
amendments they wish to make. Once the text is agreed to, the decision or
recommendation shall be signed independently and successively by the
representatives of the EU Party and each of the Republics of the CA Party.

3.           The acts of the
Association Council shall be entitled ‘Decision’ or ‘Recommendation’
respectively within the meaning of Article 6 of the
Agreement. The Secretariat of the Association Council
shall give any decision or recommendation a serial number, the date of adoption
and a description of their subject-matter. Each decision shall provide for the
date of its entry into force and shall be signed by the Parties.

4.           The decisions and
recommendations of the Association Council shall be authenticated by the two
Secretaries.

5.           The decisions and
recommendations shall be forwarded to each of the addressees referred to in
Article 7 of these rules of Procedure.

6.           Each Party may decide to
order publication of the decisions and recommendations of the Association
Council in its respective official publication.

Article 12

Languages

1.           The official languages of
the Association Council shall be Spanish and another of the official languages
of the Agreement agreed by the Parties.

2.           Unless otherwise decided,
the Association Council shall base its deliberations on documentation prepared
in these languages.

Article 13

Expenses

1.           Each Party shall meet any
expenses it incurs as a result of participating in the meetings of the
Association Council, both with regard to staff, travel and subsistence
expenditure and with regard to postal and telecommunications expenditure.

2.           Expenditure in connection
with the organisation of meetings and reproduction of documents shall be borne
by the Party hosting the meeting.

3.           Expenditure in connection
with interpreting at meetings and translation of documents into or from Spanish
and the other official language of the Association Council as referred to in
Article 12(1) of these Rules of Procedure shall be borne by the Party hosting
the meeting. Interpreting and translation into or from other languages shall be
borne directly by the requesting Party.

Article 14

Association
Committee

1.           In accordance with Article
7 of the Agreement, the Association Council shall be assisted in carrying out
its duties by the Association Committee. The Committee shall be composed of
representatives of the EU Party, on the one hand, and of representatives of the
CA Party, on the other hand, at the level determined by the Agreement.

2.           The Association Committee
shall prepare the meetings and the deliberations of the Association Council[1], implement the
decisions of the Association Council where appropriate and, in general, ensure
continuity of the association relationship and the proper functioning of the
Agreement. It shall consider any matter referred to it by the Association Council
as well as any other matter which may arise in the course of the day-to-day
implementation of the Agreement. It shall submit proposals or any draft
decisions/recommendations to the Association Council for its approval. In accordance with Article 7(4) of the Agreement, the Association
Council may empower the Association Committee to take decisions on its behalf.

3.           In cases where the
Agreement refers to an obligation to consult or a possibility of consultation
or where the Parties decide by mutual agreement to consult each other, such
consultation may take place within the Association Committee, except as otherwise specified in the Agreement. The
consultation may continue in the Association Council if the two Parties so
agree.

Article 15

Amendment
of Rules of Procedure

These Rules of Procedure may be amended
according to the provisions of Article 11.

ANNEX
B to DECISION No 1/[...] OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL

of
[...]

Rules of Procedure of the Association Committee and
Sub-Committees

Article 1

Composition

1.           The Association Committee
that is established in accordance with Article 7 of the Association Agreement
between the European Union and its Member States, on the one hand, and Central
America, on the other, (hereinafter “the Agreement”) shall perform its duties
as provided for in the Agreement and take responsibility for general
implementation of the Agreement.

2.           As provided for in
Articles 7(1) and 346 of the Agreement, the Association Committee shall be
composed of representatives of the European Union and representatives of each
of the Republics of the CA Party, at senior official level, which have
competence over the specific issues to be addressed at any given session.

3.           Any Parties to the
Agreement having completed the procedure laid down in Article 353(2) or 353(4),
shall become Members of the Association Committee.

4.           The Association Committee
shall grant the status of observers to any Parties to the Agreement not having
completed the procedure laid down in Article 353(2) or 353(4).

5.           Pursuant to Article 346 of
the Agreement, when the Association Committee performs principally or
exclusively the tasks conferred upon it in Part IV of the Agreement, it shall
be composed of senior officials of the Parties having responsibility for trade-related
matters. A representative of the Party chairing the Association Committee shall
act as chairperson.

6.           As provided for in Article
352(3) of the Agreement, the Republics of the CA Party shall act collectively
in the decision making of the institutional framework of the Agreement; the
adoption of decisions and recommendations shall require their consensus.

7.           Reference to the Parties
in these Rules of Procedure is in accordance with the definition provided for
in Article 352 of the Agreement.

Article 2

Chairmanship

The EU Party and the CA Party shall hold the Chair of the Association
Committee, alternately, for a period of 12 months. The Chair shall be a Member
of the Association Committee. The first period shall begin on the date of the
first Association Committee meeting and end on 31 December of the same year.

Article 3

Meetings

1.           Save as otherwise agreed
by the Parties, the Association Committee shall meet regularly, at least once a
year. Special sessions of the Association Committee may be held if the Parties
so agree, at the request of a Party.

2.           Each meeting of the
Association Committee shall be convened by the Chair at a date and place agreed
by the Parties. The convening notice of the meeting shall be issued by the
Secretariat of the Association Committee to the Members no later than 28
calendar days prior to the start of the session, unless the Parties agree
otherwise.

3.           Whenever it is possible,
the regular meeting of the Association Committee shall be convened in due time
in advance of the regular meeting of the Association Council.

4.           By way of exception and if
the Parties agree, the meetings of the Association Committee may be held by any
agreed technological means.

Article 4

Representation

1.           Each Party shall notify to
the other Parties the list of its representatives in the Association Committee
(hereinafter referred to as 'Members') for the different issues to be
addressed. The list shall be administered by the Secretariat of the Association
Committee.

2.           A Member wishing to be represented
by an alternate representative for a particular meeting shall notify in writing
to the other Parties of the Association Committee of the name of his or her
alternate representative before that meeting takes place. The alternate
representative of a Member shall exercise all the rights of that Member.

Article 5

Delegations

The Members of the Association Committee
may be accompanied by other officials. Before each meeting, the Parties shall
be informed, through the Secretariat, of the intended composition of the
delegations attending the meeting.

Article 6

Secretariat

An official of the EU Party and an official
of a Republic of the CA Party, who shall rotate in accordance with guidelines
established to that effect by the Republics of the CA Party, shall act jointly
as Secretaries of the Association Committee.

Article 7

Correspondence

1.           Correspondence addressed
to the Association Committee shall be directed to the Secretary of either the
EU Party or of the Republic of the CA Party, which in turn will inform the
other Secretary.

2.           The Secretariat shall
ensure that correspondence addressed to the Association Committee is forwarded
to the Chair of the Committee and circulated, where appropriate, as documents
referred to in Article 8 of these Rules of Procedure.

3.           Correspondence from the
Chair of the Association Committee shall be sent to the Parties by the
Secretariat and circulated, where appropriate, as documents referred to in
Article 8 of these Rules of Procedure.

Article 8

Documents

1.           Where the deliberations of
the Association Committee are based on written supporting documents, such
documents shall be numbered and circulated by the Secretariat to the Members.

2.           Each Secretary shall be
responsible for circulating the documents to the appropriate Members of his or
her side in the Association Committee and systematically copying the other
Secretary.

Article 9

Confidentiality

1.           Unless otherwise decided,
the meetings of the Association Committee shall not be public.

2.           When a Party submits to
the Association Committee, Sub-Committees, Working Groups or any other bodies,
information designated as confidential, the other Party shall treat that
information in respect of the procedure described in Article 336(2) of the
Agreement.

3.           Each Party may decide on
the publication of the decisions and recommendations of the Association
Committee in its respective official publication.

Article 10

Agendas
for the Meetings

1.           A provisional agenda for
each meeting shall be drawn up by the Secretariat of the Association Committee
on the basis of proposals made by the Parties. It shall be forwarded, together
with the relevant documents, to the Chair of the Association Committee and its
Members no later than 15 calendar days before the beginning of the meeting as
documents referred to in Article 8 of these Rules of Procedure.

2.           The provisional agenda
shall include items in respect of which the Secretariat of the Association
Committee has received a request for inclusion in the agenda by a Party,
together with the relevant documents, no later than 21 calendar days before the
beginning of the meeting.

3.           The agenda shall be
adopted by the Association Committee at the beginning of each meeting. Items
other than those appearing on the provisional agenda may be placed on the agenda
if the Parties so agree.

4.           The Chairperson of the
session of the Association Committee may, upon agreement, invite observers on
an ad-hoc basis to attend its meetings or experts in order to provide
information on specific subjects.

5.           The Chairperson of the
session of the Association Committee may reduce, in consultation with the
Parties, the time periods specified in paragraphs 1 and 2 in order to take
account of the requirements of a particular case.

Article 11

Minutes

1.           Draft minutes of each meeting
shall be drawn up jointly by the two Secretaries, normally within 21 calendar
days from the end of the meeting.

2.           The minutes shall, as a
general rule, indicate in respect of each item on the agenda:

(a)     the documentation submitted to the
Association Committee;

(b)     statements which a Member of the
Association Committee has asked to be entered; and

(c)     issues agreed to by the Parties, such
as decisions adopted, recommendations made, statements agreed upon and any
conclusions on specific items, among others.

3.           The minutes shall also
include a list of Members or their alternate representatives who took part in
the meeting, a list of the Members of the delegations accompanying them and a
list of any observers or experts to the meeting.

4.           The minutes shall be
approved in writing by all Parties within 28 calendar days of the date of the
meeting. Once approved, the minutes shall be signed by the Chair and the two
Secretaries of the Association Committee. A certified true copy shall be
forwarded to each of the Parties.

5.           Unless
otherwise agreed, the Association Committee shall adopt an action plan
reflecting the actions agreed during the meeting and its implementation shall
be reviewed in the following meeting.

Article 12

Decisions
and recommendations

1.           In the specific cases
where the Agreement confers the power to take decisions or where such power has
been delegated to it by the Association Council, the Association Committee
shall take decisions and make recommendations by mutual agreement between the
Parties, which shall be signed by each of the Members of the Association
Committee during its meetings. Observers shall not take part in the decision
making of the Association Committee.

2.           The Association Committee
may take decisions or make recommendations by written procedure if the Parties
so agree. For this purpose, the text of the proposal shall be circulated in
writing by the Chair of the Association Committee to its Members and Observers
pursuant to Article 8, with a time limit of no less than 21 calendar days
within which Members must make known any reservations or amendments they wish
to make. Once the text is agreed to, the decision or recommendation shall be
signed independently and successively by the representatives of the EU Party
and each of the Republics of the CA Party.

3.           The acts of the Association Committee shall be entitled
‘Decision’ or ‘Recommendation’ respectively. The Secretariat of the Association
Committee shall give any decision or recommendation a serial number, the date
of adoption and a description of their subject-matter. Each decision shall
provide for the date of its entry into force and shall be signed by the
Parties.

Article 13

Reports

The Association Committee shall report to
the Association Council on its activities and those of its Sub Committees,
Working Groups and other bodies at each regular meeting of the Association
Council.

Article 14

Languages

1.           The official languages of
the Association Committee shall be Spanish and another of the official languages of the Agreement agreed by the
Parties.

2.           Unless otherwise decided,
the Association Committee shall base its deliberations on documentation prepared in these languages.

Article 15

Expenses

1.           Each Party shall meet any
expenses it incurs as a result of participating in the meetings of the
Association Committee, both with regard to staff, travel and subsistence
expenditure and with regard to postal and telecommunications expenditure.

2.           Expenditure in connection
with the organisation of meetings and reproduction of documents shall be borne by the Party hosting the meeting.

3.           Expenditure in connection
with interpreting at meetings and translation of documents into or from Spanish
and the other official language of the Association Committee as referred to in
Article 14(1) of these Rules of Procedure shall be borne by the Party hosting
the meeting. Interpreting and translation into or from other languages shall be
borne directly by the requesting Party.

Article 16

Amendment
of Rules of Procedure

These Rules of Procedure may be amended
according to the provisions of Article 12.

Article 17

Sub-Committees
and specialised Working Groups

1.           In accordance with Article
8(2) of the Agreement, the Association Committee may decide to create
Sub-Committees or specialised Working Groups other than provided for in the
Agreement to assist it in the performance of its duties. The Association
Committee may decide to abolish any such Sub-Committee or Working Group, define
or amend their terms of reference. Unless otherwise decided, these
sub-committees shall work under the authority of the Association Committee, to
which they shall report after each of their meetings.

2.           Unless otherwise provided
for by the Agreement or agreed in the Association Council, the present rules of
procedures shall be applied mutatis mutandis to any Sub-Committee or
specialized Working Group, with the following adaptations:

(a)     each Party shall notify in writing to
the other Parties the list of its participants in these bodies and their
respective functions. The Secretariat of the Association Committee shall
administer these lists.

(b)     all relevant correspondences,
documents and communications between the contact points shall also be forwarded
to the Secretariat of the Association Committee simultaneously.

(c)     unless otherwise provided for in the
Agreement or agreed by the Parties, the Sub-Committees or Working Groups shall
only have the power to make recommendations.

ANNEX II

DECISION
No 2/[...] OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL

of
[...]

adopting the Rules of Procedure governing Dispute Settlement under
Title X and the Code of Conduct for members of panels and mediators

THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL,

Having regard to the Association Agreement
between the European Union and its Member States, on the one hand, and Central
America, on the other, (hereinafter referred to as ‘the Agreement’) and in
particular Articles 6(1), 319, 325, and 328, thereof,

Whereas:

(1)          Pursuant to Article 6(1),
the Association Council has the power to take decisions in the cases provided
for in the Agreement.

(2)          Pursuant to Article 328(1),
during its first meeting, the Association Council shall adopt rules of procedure
as well as a code of conduct, governing dispute settlement under Title X of the
Agreement,

HAS DECIDED AS FOLLOWS:

Sole Article

The Rules of Procedure governing the Dispute
Settlement under Title X of the Agreement and the Code of Conduct Code for
members of panels and mediators, as set out in Annexes A and B respectively,
are hereby adopted.

This decision shall enter into force on the
date of its adoption.

Done at ..., xxxx.

For the EU-Central America Association
Council

[...] For Costa Rica || [...] For El Salvador || [...] For Guatemala ||

||

[...] For Honduras || [...] For Nicaragua [...] For the European Union || [...] For Panama

ANNEX
A to DECISION No 2/[...] OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL

of
[...]

Rules of Procedure governing the Dispute Settlement
Procedures under Title X of the Agreement

GENERAL
PROVISIONS

1.           Any
reference made in these Rules to an Article or Title is a reference to either
the appropriate Article in the Agreement, or the Title X on Dispute Settlement of the Agreement in its
entirety.

2.           For purposes of the Title
and under these Rules, the following terms shall be understood as:

(a)     “advisor”: a person retained or
appointed by a Party to advise or assist that Party in connection with the
Panel proceeding;

(b)     “Agreement”: the Agreement
establishing an Association between the European Union and its Member States,
on the one hand, and Central America on the other;

(c)     “assistant”: a person who, under the
terms of appointment of a panellist, or the Panel, conducts research or
provides assistance to the panellist or the Panel; as required by the dispute;

(d)     “complaining Party”: a Party that
requests the establishment of a Panel under Article 311,
which could be composed by one or more Republics of the CA Party;

(e)     “day”: a calendar day;

(f)     “disputing Parties”: the complaining Party and the Party complained against;

(g)     “disputing Party”: the complaining Party or the Party complained against;

(h)     “legal holiday”: Saturdays and Sundays, as well as any
other days officially established by a Party as a legal holiday[2];

(i)      “Panel”: a Panel established under
Article 312;

(j)      “panellist”: a member of a Panel
established under Article 312;

(k)     “Party complained against”: any Party
that is alleged to be in violation of the provisions referred to in Article 309, which could be composed by one or more Republics of the CA Party;

(l)      “representative of a Party”: an
employee or any person appointed by a government department or agency or any
other public entity of a Party.

3.           The Party complained
against shall be in charge of the logistical administration of dispute
settlement proceedings, in particular the organization of hearings, unless
otherwise agreed. However,
disputing Parties shall share the expenses derived from organizational matters,
including the expenses of the panellists as well as related translation.

SUBMISSION OF DOCUMENTS, NOTIFICATIONS AND
OTHER COMMUNICATIONS

4.           The disputing Parties and
the Panel shall transmit any request, notice, written submission or other
document by delivery against receipt, registered post, courier, facsimile
transmission, telex, telegram, email, web links or any other means of
telecommunication that provides a record of the dispatch or receipt thereof. With regard to the Party submitting the document, the date of delivery shall be the date indicated
in the record of dispatch. With regard to the Party receiving the document, the
delivery date will be the date indicated in the record of receipt of the
document. The time that elapses between the date of delivery of the document
and the effective receipt thereof shall not be considered in the calculation of
the procedural time periods.[3]

5.           A disputing Party shall
simultaneously provide a copy of each of its written submissions to the other disputing Party at the office
indicated in Rule 67 and to each of the panellists. A copy of the document
shall also be provided in electronic format. Similarly,
the disputing Parties and the Panel where indicated in the Title shall provide
a copy of the submissions to the Association Committee.

6.           All notifications made by
the Panel shall be addressed to the relevant offices of the Parties to the procedure.

7.           Minor errors of a clerical
nature in any request, notice, written submission or other document related to
the Panel proceeding may be corrected by delivery of a new document clearly
indicating the changes.

8.           If the last day for
delivery of a document falls on a legal holiday of a Party to the procedure, or
if the relevant office is closed on that day due to force
majeure, the document may be delivered on the next
business day for that Party.

COMMENCING
THE PANEL PROCEDURE

9.           Once a member of the Panel
is appointed in accordance with Article 312, the appointed panellist shall have
10 days to accept such appointment. The acceptance by the panellist must be
accompanied by the Initial Declaration established in the Code of Conduct.

10.         Unless the disputing
Parties otherwise agree, individuals who have acted in the capacity of mediator
or any other dispute resolution function may not serve as panellists in a
subsequent dispute related to the same subject matter.

11.         Unless
the disputing Parties agree otherwise, they shall communicate with or meet the
Panel within 7 days of its
establishment according to Article 312 paragraph 6 in order to determine such matters that the disputing Parties or the Panel deem appropriate,
including but not limited to the remuneration and expenses to be paid to the panellists
and other individuals as established pursuant to Rules 63, 64 and 65.

INITIAL
SUBMISSIONS

12.         The complaining Party shall
deliver its initial written submission no later than 20 days after the date of
establishment of the Panel. The Party complained against shall deliver its
written counter-submission no later than 20 days after the date of delivery of
the initial written submission.

WORKING
OF PANELS

13.         The Panel shall establish
its working schedule allowing the disputing Parties adequate time to comply
with all steps of the proceedings. The working schedule shall establish precise
dates and time periods for the submission of all relevant communications,
submissions and other documents as well as for any Panel hearings. The Panel
may modify, subject to Rule 19, the working schedule by its own initiative or
after consultation with the Parties, and shall in any event promptly notify the
disputing Parties of any modifications to the working schedule.

14.         The chairperson of the
Panel shall preside at all its meetings. A Panel may delegate to the
chairperson authority to make administrative and procedural decisions.

15.         The Panel may conduct its
activities by any means, including telephone, facsimile transmissions,
registered mail, courier, telex, telegram, email, videoconference or web links,
unless otherwise provided for in Part IV of the Agreement or elsewhere. When
deciding which means to use, the Panel shall ensure that the means do not
diminish a Party’s right to fully and effectively participate in the
proceedings.

16.         Only panellists may take
part in the deliberations of the Panel. However, the Panel may permit its
assistants, interpreters or translators to be present at its deliberations.

17.         The adoption of any
procedural decision, including the Panel ruling on the subject matter, shall
remain the exclusive responsibility of the Panel and must not be delegated.

18.         Where a procedural question
arises that is not covered by the provisions of the Title or in these Rules, a
Panel may adopt for that particular dispute any appropriate procedure
compatible with those provisions.

19.         When the Panel considers
that there is a need to modify any time period applicable in the proceedings or
to make any other procedural or administrative adjustment, it shall inform the
disputing Parties in writing of the reasons for the change or adjustment and of
the period or adjustment needed. The time periods of
Article 317 paragraph 3 shall not be modified, unless
exceptional circumstances apply.

REPLACEMENT

20.         If a panellist is unable to
participate in the proceeding, withdraws, or must be replaced, a replacement
shall be selected in accordance with Article 312.

21.         Where a disputing Party considers that a panellist is in violation
of the Code of Conduct or does not fulfil the requirements set out in Article
325 and for this reason should be replaced, this Party may request the removal
of the panellist by notifying the other disputing Party within 10 days from the
time at which it came to know of the circumstances underlying the panellist’s
material violation of the Code of Conduct.

22.         Where a disputing Party
considers that a panellist other than the chairperson is in violation of the
Code of Conduct, the disputing Parties shall, within 10 days, consult and, if
they so agree, replace the panellist and select a replacement in accordance
with Article 312.

If the disputing Parties fail to agree on the
need to replace a panellist, any disputing Party may request that such matter
be referred to the chairperson of the Panel, whose decision shall be final.

If the chairperson concludes that a panellist
is in violation of the Code of Conduct, a replacement shall be selected. The
selection of the replacement shall be carried out in accordance with the
relevant paragraph of Article 312, based on which the panellist to be replaced
was initially selected. Absent selection of a replacement in accordance with
the relevant paragraph of Article 312 within 10 days from the chairperson’s
communication to the Parties regarding a panellist’s violation of the Code of
Conduct, the chairperson shall select the new panellist. This selection shall
take place within 5 days and shall be promptly communicated to the disputing
Parties.

23.         Where a disputing Party considers that the chairperson of the Panel is
in violation of the Code of Conduct, the
Parties shall, within 10 days, consult and, if they so agree, replace the
chairperson and select a replacement in accordance with Article 312.

If the disputing
Parties fail to agree on the need to replace the chairperson, any disputing Party may request that
such matter be referred to one of the remaining individuals selected to
act as chairpersons under Article 325 paragraph 1 of
the Title. His or her name shall be drawn by lot, no
later than 5 days from the date of the request, in the presence of the Parties
if they so choose, by the chairperson of the Association Committee or the
chairperson's delegate. The decision on the need to replace the chairperson
shall be final.

If this person
concludes that the original chairperson is in violation
of the Code of Conduct, he or she shall
select a new chairperson by lot among the remaining pool of individuals
referred to under Article 325 paragraph 1 of the Title. This selection shall be done in the presence of
the disputing Parties if they so choose and shall take place within 5
days from the date of the lot referred to in the previous paragraph.

24.         Any
panellist believed to be in violation of the Code of
Conduct may also resign, without this
resignation implying an acceptance of the validity of the grounds that formed
the basis of the replacement request.

25.         On
appointing the replacement, the Panel shall decide at its entire discretion, if
all or part of the hearings shall be repeated.

26.         The Panel proceedings
shall be suspended for the period taken to carry out the procedures provided
for in Rules 20, 21, 22, 23 and 24.

HEARINGS

27.         The chairperson shall fix
the date, venue and time of the hearing in consultation[4] with the disputing
Parties and the other members of the Panel, and shall notify this in writing to
the disputing Parties. This information shall also be made publicly available
by the disputing Party in charge of the logistical administration of the
proceedings unless the hearing is closed to the public. Unless the disputing
Parties disagree, the Panel may decide not to convene a hearing.

28.         Unless the disputing
Parties agree otherwise, the hearing shall be held in Brussels if the Party complained
against is the European Union or in the relevant Central American capital if
the Party complained against is a Republic of the CA Party.

29.         The Panel may convene
additional hearings if the disputing Parties so agree.

30.         All panellists shall be
present during the entirety of any hearing so as to ensure the effective
resolution of the dispute and the validity of the Panel’s actions, decisions
and rulings.

31.         The following persons may
attend the hearing, irrespective of whether the hearing is closed to the public
or not:

(a)     representatives of the disputing
Parties;

(b)     advisers to the disputing Parties;

(c)     administrative staff, interpreters,
translators and court reporters; and

(d)     panellists’ assistants.

Only the representatives and advisers of the
disputing Parties may address the Panel.

32.         No later than 5 days before
the date of a hearing, each disputing Party shall deliver to the Panel a list
of the names of persons who will make oral arguments or presentations at the
hearing on behalf of that Party and of other representatives or advisers who
will be attending the hearing. The disputing Parties shall not include in their
delegations, persons that directly or indirectly possess a financial or
personal interest in the matter. The disputing Parties may object the presence
of any of the aforementioned persons, stating the reasons for said objection.
The objection shall be decided by the Panel at the beginning of the hearing.

33.         The hearings of the panels
shall be open to the public, unless the disputing Parties decide that the
hearings shall be partially or completely closed to the public. However, the
Panel shall meet in closed session when the submission and arguments of a
disputing Party contains confidential information, including but not limited to
commercial information.

34.         The Panel shall conduct the
hearing in the following manner, ensuring that the complaining Party and the
Party complained against are afforded equal time:

Argument

(a)     argument of the complaining Party

(b)     argument of the Party complained
against

Rebuttal Argument

(a)     rebuttal

(b)     surrebuttal

35.         The Panel may direct
questions to either disputing Party at any time during the hearing.

36.         The Panel shall arrange for
a transcript of each hearing to be promptly prepared and communicated to the
disputing Parties.

37.         Each disputing Party may
deliver a supplementary written submission concerning any matter that arose
during the hearing within 10 days of the final date of the hearing.

QUESTIONS
IN WRITING

38.         The Panel may at any time
during the proceedings address questions in writing to one or both Parties.
Each of the disputing Parties shall receive a copy of any questions from the
Panel.

39.         A disputing Party shall
simultaneously provide a copy of its written response to the Panel’s questions
to the other disputing Party. Each disputing Party shall be given the
opportunity to provide written comments on the other disputing Party’s reply
within 5 days of the date of delivery.

EVIDENCE

40.         The disputing Parties
shall, to the furthest possible extent, present evidence with the initial
written submission and the written counter submission in support of the
arguments made therein. The disputing Parties may also submit additional
evidence in support of the arguments made in their rebuttal and surrebuttal
submissions. Exceptionally, the disputing Parties may submit additional
evidence where such evidence has only become available or come to the attention
of a disputing Party after the exchange of written submissions or where the Panel
considers such evidence pertinent and provides the other disputing Party an
opportunity to comment on it.

CONFIDENTIALITY

41.         The disputing Parties and
their advisers shall maintain the confidentiality of the Panel hearings where
the hearings are held in a fully or partially closed session, in accordance
with Rule 33. Each disputing Party and its advisers shall treat as confidential
any information submitted by the other disputing Party to the Panel which that
disputing Party has designated as confidential. Where a disputing Party submits
a confidential version of its written submissions to the Panel, it shall also,
upon request of the other disputing Party, provide a non-confidential summary
of the information contained in its submissions that could be disclosed to the
public no later than 15 days after the date of either the request or the
submission, whichever is later. Nothing in these Rules shall preclude a Party
from disclosing statements of its own positions to the public to the extent
that they do not contain confidential commercial information.

EX
PARTE CONTACTS

42.         The Panel shall not meet or
contact a disputing Party in the absence of the other Party.

43.         No member of the Panel may
discuss any aspect of the subject matter of the proceedings with one disputing
Party or both Parties in the absence of the other panellists.

INFORMATION
AND TECHNICAL ADVICE

44.         When requesting information
and technical advice pursuant to Article 320 paragraph 2, the Panel shall
request such information and technical advice at the earliest possible point in
time and in any event not later than 15 days from the date of the final
hearing, unless the Panel demonstrates that exceptional circumstances apply.

45.         Prior to requesting
information or technical advice, the Panel shall establish and notify to the
disputing Parties the procedures it will follow in order to obtain the
information. Such procedures shall include:

(a)     an opportunity for the disputing
Parties to submit to the Panel written observations regarding the factual
issues that the experts, bodies or other sources are requested to address;

(b)     the identification and appointment of
the expert or advisor by the Panel and the establishment of the period of time
in which the information or technical advice shall be provided; and

(c)     an adequate period of time for the
disputing Parties to provide comments on the information or technical advice
provided by the expert, body or other source.

46.         The Panel may not select as
technical advisor, an individual with a financial or personal interest in the
matter of the proceeding, or whose employer, partner, associate or relative has
a similar interest. In any case, the requirements established in Article 325
paragraph 2 shall apply to the selection of experts, bodies or other sources.

47.         When a request is made for
information and technical advice pursuant to Article 320 paragraph 2, the Panel
shall consider whether to suspend time periods pending receipt of said
information.

AMICUS CURIAE BRIEFS

48.         Unless the disputing Parties
agree otherwise, the Panel may receive Amicus Curiae briefs from interested natural or legal persons,
established in the territory of the disputing Parties, as long as they are
presented within 10 days from the date of establishment of the Panel.

49.         The briefs must:

(a)     be dated and signed by the interested
person or its representative;

(b)     be written in the language or
languages chosen by the disputing Parties in accordance with Rule 55;

(c)     be concise and in no case exceed 15
typed pages, including any annexes; and

(d)     be directly relevant to the matters of
fact and law submitted for the Panel’s consideration.

50.         The briefs shall be
accompanied by a written declaration clearly indicating:

(a)     a description of the interested
persons who present them, including their place of incorporation and location,
the nature of their activities, their sources of financing and, where relevant,
documentation corroborating said information;

(b)     whether the interested persons have
any direct or indirect relation with any of the disputing Parties, as well as
if they have received or expect to receive any financial or other type of aid
from any of the disputing Parties, another government, person or organization,
generally or in the preparation of the briefs; and

(c)     a brief summary of how the interested
persons’ briefs would contribute to resolve the dispute.

51.         The briefs shall be
addressed to the chairperson of the Panel in the languages established in Rule
49.

52.         The Panel shall not
consider Amicus Curiae briefs which do not conform to the above rules.

53.         The Panel shall list in the
ruling on the subject matter all Amicus Curiae briefs that it has received and
which conform to the above rules. The Panel shall not be obliged to address in
its ruling on the subject matter, the factual or legal arguments made in such
submissions. Any submission received by the Panel under these Rules shall be
communicated to the disputing Parties for their possible comments.

URGENT CASES

54.         In cases of urgency
referred to in Article 313 paragraph 3, the Panel shall adjust the time periods referred to in these Rules as
appropriate.

LANGUAGE OF PROCEEDINGS, TRANSLATION AND
INTERPRETATION

55.         During the consultations
referred to in Article 310 and no later than the meeting referred to in Rule 11, the disputing Parties shall
endeavour to agree on a working language or languages for the proceedings
before the Panel, being English, Spanish or both.

56.         Panel rulings, including the Panel ruling on the
subject matter, shall be drafted and notified in the language or languages
chosen by the disputing Parties. The costs incurred for translation of such
Panel rulings shall be borne equally by the disputing Parties.

57.         Each disputing Party shall
bear the cost of any further translation it deems necessary.

CALCULATION
OF PROCEDURAL TIME PERIODS

58.         When, in accordance with
the Title, these Rules, or by decision of the Panel, any action, procedural
step or hearing has to take place, before, on or after a specified date or
event, the specified date or the date of the event shall not be included in
calculating the time periods stipulated in the Title, these Rules or
established by the Panel.

59.         All time periods
established in the Title and in these Rules, shall be calculated from the day
after the request, notice, written submission or other document has been
communicated to the Party receiving the document.

60.         The time that elapses
between the date of delivery of the document and the effective receipt thereof,
shall not be considered in the calculation of the procedural time periods,
pursuant to Rule 4.

61.         Where a Party receives a
document on a date other than the date on which this document is received by
the other Party, any time period calculated on the basis of the date of receipt
of that document shall be calculated from the last date of receipt of that
document.

62.         Where a time period ends on
a legal holiday of any or both of the disputing Parties, such time period shall
be extended until the following working day.

COSTS

63.         Unless determined by the
Panel that exceptional circumstances apply,[5]
the payment of panellists, of the assistants, the experts, bodies or other
sources designated in accordance with Article 320, their transportation,
accommodation and other eligible expenses, as well as general administrative
costs of the Panel proceedings, shall be borne by equal shares among the
disputing Parties, according to the expense claim presented by the Panel.

64.         The panellists shall
maintain a complete and detailed record of relevant expenses incurred and
present an expense claim to the office designated by
the Parties pursuant to Rule 67, along with the
supporting documents, for purposes of remuneration and payment of expenses. The
same shall apply to assistants and individuals designated in accordance with
Article 320 as it relates to their specific role of assistant to a panellist or
the Panel or from experts, bodies or other sources providing information and
technical advice.

65.         The Association Council
shall establish all eligible costs for the abovementioned individuals, as well
as the remuneration and allowances to be paid, which will be in accordance with
WTO standards.

66.         The preceding rules apply
equally to any mediator under the Mediation Mechanism.

DESIGNATED OFFICE IN RELATION TO
DISPUTE SETTLEMENT PROCEDURES AND THE MEDIATION MECHANISM

67.         Each Party shall:

(a)     designate an office to perform the
functions specified in relevant parts of these Rules; and

(b)     notify the Association Committee of
the location of its designated office.

68.         All notifications and
delivery of documents referred to in the Title on Dispute Settlement, the Rules
of Procedure and in the Title on the Mediation Mechanism shall be made through
this office.

OTHER
PROCEDURES

69.         These Rules of Procedure
are also applicable to procedures established under Article 315 paragraph 3, Article 316 paragraph 2, Article 317 paragraph 3 and
Article 318 paragraph 2. However, the time periods laid
down in these Rules of Procedure shall be adjusted in line with the special time
periods provided for the adoption of a ruling by the Panel in those other
procedures.

COMPLIANCE WITH THE TITLE AND THE
RULES

70.         The
Parties and the Panel shall ensure that their representatives, advisors,
assistants and other individuals who participate in any part of a proceeding
under the Title and these Rules, comply with the relevant provisions as well as
any supplementary rules agreed by the Parties or adopted by the Panel.

ANNEX
B to DECISION No 2/[...] OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL

of
[...]

Code of Conduct for Members of Panels
and Mediators

Definitions

1.           For purposes of this Code
of Conduct, the following terms shall be understood as:

a)      “the Agreement”: the Agreement
establishing an Association between the European Union and its Member States,
on the one hand, and Central America on the other;

b)      “the Title”: Title X on Dispute
Settlement of the Agreement;

c)      “Article”: reference to the
appropriate Article of the Agreement in its entirety;

d)      "assistant": a person who,
under the terms of appointment of a panellist or the panel, conducts research
or provides assistance to the panellist or the panel, for purposes of
the dispute;

e)      "candidate": an individual
who is under consideration for selection as a member of a panel under Article
310;

f)       "mediator": a person who
conducts a mediation procedure in accordance with Title XI on Mediation
Mechanism for non-tariff measures of the Agreement;

g)      "member" or “panellist”: a
member of a panel established under Article 312;

h)      "proceeding", unless
otherwise specified, means a panel proceeding under the Title; and

i)       "staff", in respect to a
member, persons under the direction and control of a member, other than
assistants;

Responsibilities to the process

2.           Every
candidate and member shall avoid impropriety and the appearance of impropriety,
shall be independent and impartial, shall avoid direct and indirect conflicts
of interests, and shall observe the highest standards of conduct so that the
integrity and impartiality of the dispute settlement proceeding and the dispute
settlement mechanism is preserved. Former members must comply with the
obligations established in sections on Obligations of Former Members and
Confidentiality of this Code of Conduct.

Disclosure obligations

3.           Prior
to notifying the acceptance of his or her selection as a panellist, a candidate
shall consider and if necessary disclose the existence of any interest,
relationship or other circumstances likely to affect his or her independence or
impartiality or that might reasonably create an appearance of impropriety or
bias in the proceeding. To this end, a candidate shall make all reasonable
efforts to become aware of any such interests, relationships and matters.

4.           Without
limiting the generality of the foregoing, candidates shall disclose in good
faith:

a)      any financial or personal interest:

i)       in the proceeding or its outcome; and

ii)      in a judicial, administrative or arbitral proceeding that involves
issues that may be directly or indirectly affected by the proceeding for which
the candidate is under consideration.

b)      any financial interest of the candidate’s employer, partner,
associate or member of his or her family:

i)       in the proceeding or
its outcome; and

ii)      in a judicial, administrative or arbitral proceeding that involves
issues that may be directly or indirectly affected by the proceeding for which
the candidate is under consideration.

c)      any existing or past financial, commercial, professional, family,
social or working relationship with any of the Parties or with their
representatives or advisors, or any such relationship involving the candidate’s
employer, partner, associate or member of his or her family; and

d)      any
other circumstances
which may result in bias or partiality, or an appearance of bias or partiality.

5.           For
the purpose of complying with paragraphs 3 and 4, all candidates who have been
selected as panellists and have accepted their appointment,
must complete an Initial Declaration regarding disclosure. The declaration must
be transmitted to the Parties along with the acceptance of their appointment
for their consideration.

6.           Once
appointed, a member shall continue to make all reasonable efforts to become
aware of any interests, relationships or matters referred to in paragraphs 3
and 4 of this Code of Conduct and shall disclose them. The disclosure
obligation is a continuing duty which requires a member to disclose any such interests, relationships or matters
that may arise during any stage of the proceeding. The member shall disclose
such interests, relationships or other circumstances by informing the Parties
in writing and for their consideration, with copy to the Association Committee.

7.           A
member shall only communicate matters concerning actual or potential violations
of this Code of Conduct to the Association Committee for consideration by the
Parties.

Duties of members

8.           Upon
acceptance of his or her appointment a member shall perform his or her duties
thoroughly and expeditiously throughout the course of the proceeding, and with
fairness and diligence.

9.           A
member shall only consider and decide upon those issues raised during the
proceeding and necessary for a ruling and shall not delegate this duty to any
other person.

10.         A member shall take all
appropriate steps to ensure that his or her assistant and staff are aware of,
and comply with, the sections on Responsibilities to the Process, Disclosure
Obligations, Independence,
Impartiality and Rights of Members, Obligations of Former Members and
Confidentiality of this Code of Conduct.

11.         A member shall not engage
in ex parte contacts concerning the proceeding.

Independence, impartiality and rights of members

12.         A member must be
independent and impartial and avoid creating an appearance of impropriety,
partiality or bias and shall not be influenced by self-interest or that of
others, outside pressure, political considerations, public clamour, and loyalty
to a Party or fear of criticism.

13.         A member shall not,
directly or indirectly, incur any obligation or accept any benefit that would
in any way interfere, or appear to interfere, with the proper performance of
the member’s duties.

14.         A member may not use his or
her position on the panel to advance any personal or private interests and
shall avoid actions that may create the impression that others are in a special
position to influence the member.

15.         A member may not allow
financial, business, professional, family or social relationships or
responsibilities to influence the member’s conduct or judgement.

16.         A member must avoid
entering into any relationship or acquiring any financial or other personal
interest likely to affect the member’s impartiality or that might reasonably
create an appearance of impropriety, partiality or bias.

17.         No member shall limit or
deprive other members from their right and obligation to fully participate in
all relevant aspects of the proceeding.

Obligations of former members

18.         All former members
must avoid actions that may create the appearance that they were biased in
carrying out their duties or derived advantage from the decision or ruling of
the panel.

Confidentiality

19.         No member or former member
shall at any time disclose or use any non-public information concerning a
proceeding or acquired during a proceeding except for the purposes of that
proceeding and shall not, in any case, disclose or use any such information to
gain personal advantage or advantage for others or to adversely affect the
interest of others.

20.         A member shall not disclose
a panel ruling on the subject matter or parts thereof prior to its publication
in accordance with the Title.

21.         A member or former member
shall not at any time disclose the deliberations of a panel, any member's view,
or any other non public aspect relating to the proceeding.

Mediators

22.         The disciplines described
in this Code of Conduct as applying to members or former members shall apply, mutatis
mutandis, to mediators.

ANNEX III

DECISION
No 3/[...] OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL

of
[...]

adopting
the List of Panellists

THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL,

Having regard to the Association Agreement
between the European Union and its Member States, on the one hand, and Central
America, on the other, (hereinafter referred to as ‘the Agreement’) and in
particular Article 6 and Article 325 thereof,

Whereas:

(1)          Pursuant to Article 6(1), the
Association Council has the power to take decisions in the cases provided for
in the Agreement.

(2)          Pursuant to Article 325(1),
the Association Council shall establish a list of thirty six individuals who are
willing and able to serve as panellists in the meaning of Title X of the
Agreement on dispute settlement,

HAS DECIDED AS FOLLOWS:

Sole Article

The List of the Panellists, as set out in Annex,
is hereby adopted.

This decision shall enter into force on the
date of its adoption.

Done at ..., xxxx.

For the EU-Central America Association
Council

[...] For Costa Rica || [...] For El Salvador || [...] For Guatemala ||

||

[...] For Honduras || [...] For Nicaragua [...] For the European Union || [...] For Panama

ANNEX
to DECISION No 3/[...] OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL

of
[...]

LIST OF PANELLISTS

Panellists proposed by Costa Rica

1.           Ernesto Fernández Monge

2.           Federico Valerio de Ford

Panellists proposed by El Salvador

1.           Cesar Ernesto Salazar Grande

2.           Harold C. Lantan

Panellists proposed by Guatemala

1.           Ada Lissette Redondo
Aguilera

2.           Julio Roberto Bermejo
Quiñones

Panellists proposed by Honduras

1.           Ulises Mejía León-Gómez

2.           Roberto Herrera Cáceres

Panellists proposed by Nicaragua

1.           Mauricio Herdocia

2.           José René Orúe

Panellists proposed by Panamá

1.           Yavel Francis Lanuza

2.           Francisco Álvarez De Soto

Panellists proposed by the EU

1.           Giorgio Sacerdoti (Italy)

2.           Ramon Torrent (Spain)

3.           Jacques Bourgeois (Belgium)

4.           Pieter Jan Kuijper (the Netherlands)

5.           Claus-Dieter Ehlermann
(Germany)

6.           Jan Wouters (Belgium)

7.           Laurence Boisson de Chazournes
(France)

8.           Helene Ruiz Fabri (France)

9.           Meinhard Hild (Germany)

10.         Claudio Dordi (Italy)

11.         Kim Van der Borght (Belgium)

12.         Markus Krajewski (Germany)

Chairpersons

1.           Craig Van Graastek (US)

2.           Miriam Mercedes Maroun Marun
(Venezuela)

3.           Hugo Perezcano Díaz (México)

4.           Ignacio Suárez Anzorena (Argentina)

5.           Carlos Vejar (México)

6.           Didier Chambovey (Switzerland)

7.           Shotaro Oshima (Japan)

8.           Jenniffer Hilman (US)

9.           Luiz Olavo Baptista (Brazil)

10.         Kirsten Hilman (Canada)

11.         Juan Antonio Buencamino (Philipines)

12.         David Unterhalter (South
Africa)

ANNEX IV

DECISION
No 4/[...] OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL

of
[...]

adopting the List of Trade and Sustainable Development Experts

THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL,

Having regard to the Association Agreement
between the European Union and its Member States, on the one hand, and Central
America, on the other, (hereinafter referred to as ‘the Agreement’) and in
particular Article 6 and Article 297 thereof,

Whereas:

(1)          Pursuant to Article 6(1), the
Association Council has the power to take decisions in the cases provided for
in the Agreement.

(2)          Pursuant to Article 297(2),
the Association Council shall endorse a list of a list of seventeen experts
with expertise in environmental law, international trade or the resolution of
disputes arising under international agreements and a list of seventeen experts
with expertise in labour law, international trade or the resolution of disputes
arising under international agreements,

HAS DECIDED AS FOLLOWS:

Sole Article

The List of Trade and Sustainable Development
Experts, as set out in Annex, is hereby endorsed.

This decision shall enter into force on the
date of its adoption.

Done at ..., xxxx.

For the EU-Central America Association
Council

[...] For Costa Rica || [...] For El Salvador || [...] For Guatemala ||

||

[...] For Honduras || [...] For Nicaragua [...] For the European Union || [...] For Panama

ANNEX to DECISION No 4/[...] OF THE EU-CENTRAL AMERICA
ASSOCIATION COUNCIL

of [...]

List of Trade and Sustainable Development
Experts

Experts
in environmental law, international trade or the resolution of disputes arising
under international agreements

List of national experts

1.           Marieta Lizano Martínez

2.           Alma Carolina Sánchez Fuentes

3.           Francisco Khalil de León
Barrios

4.           Mario Noel Vallejo Larios

5.           Javier Guillermo Hernández
Munguía

6.           Alexis Xavier Rodríguez
Almanza

7.           Joost Pauwelyn

8.           Jorge Cardona

9.           Karin Lukas

10.         Hélène Ruiz Fabri

11.         Laurence Boisson de Chazournes

12.         Geert Van
Calster

Chairpersons (non-nationals of the
Parties)

1.           Claudia de Windt

2.           Juan Carlos Urquidi Fell

3.           Elizabeth Jaramillo
Escobar

4.           Janice Bellace

5.           Arthur
Appleton

Experts
in labour law, international trade or the resolution of disputes arising under
international agreements

List of national experts

1.           Manuel Francisco Umaña
Soto

2.           Carolina Morán

3.           Mario Fuentes Destarac

4.           Arnando Urtecho López

5.           Adrián Meza

6.           Rolando Murgas Torraza

7.           Eddy Laurijssen

8.           Jorge Cardona

9.           Karin Lukas

10.         Hélène Ruiz Fabri

11.         Laurence Boisson de Chazournes

12.         Geert
Van Calster

Chairpersons (non-nationals of the
Parties)

1.           Emilio Morgado Velenzuela

2.           Juan Mailhos Gutiérrez

3.           Jill Murray

4.           Ross Wilson

5.           Janice Bellace

[1]               Regarding Part IV of the Agreement, this function
shall be complied by the Association Committee in close coordination with the
Coordinators designated in accordance with Article 347 of the Agreement.

[2]               This includes permanent holidays, including but not
limited to religious or historical holidays, as well as any other holidays
established on a non permanent basis.

[3]               Negotiators Note: CA will reflect further on
whether a fall back rule, for situations when no records for either dispatch or
receipt exist may be needed.

[4]               The result of the consultations referred to in this
rule, shall not be binding for the Panel.

[5]               Negotiators Note: The negotiators agree that
all costs associated with the Panel and the work of the Panel should be covered
equally by the disputing Parties. the disputing Parties further agree that
where one Party has deliberately sought to obstruct or otherwise abuse the
dispute settlement proceedings, the Panel may decide that this Party should
cover a greater share.