on the position to be taken on behalf of the European Union in the Partnership Committee established by the Comprehensive and Enhanced Partnership Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Armenia, of the other part, as regards the amendment of the list of individuals to serve as arbitrators in dispute-settlement proceedings

EXPLANATORY MEMORANDUM

1.Subject matter of the proposal

This proposal concerns the decision establishing the position to be taken on the Union's behalf in the Partnership Committee established by the Comprehensive and Enhanced Partnership Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Armenia, of the other part ("the Agreement"), in connection with the envisaged adoption of a decision amending the list of individuals to serve as arbitrators in dispute settlement proceedings

2.Context of the proposal

2.1.The Agreement

The Agreement aims to expand the existing wide bilateral cooperation in economic, trade and political areas, and on sectoral policies, thus providing a long-term basis for further developing EU-Armenia relations. By intensifying political dialogue and improving cooperation in a broad range of areas, the Agreement lays the foundations for a more effective bilateral engagement with Armenia.

Council Decision (EU) 2018/104 of 20 November 2017 approved the signing and provisional application of the Agreement pursuant to Article 385 of the Agreement. The Agreement is applied on a provisional basis since 1 June 2018.

2.2.The Partnership Committee

The Partnership Committee meeting in a specific configuration to address all issues related to Title VI (Trade and Trade-related Matters) of the Agreement is specified in Article 363(7) of the Agreement. Pursuant to Article 363(1) and (6) of the Agreement, the Partnership Committee assists the Partnership Council in the performance of its duties and functions. It has the power to adopt decisions in areas in which the Partnership Council has delegated powers to it and in the cases provided for in the Agreement. Those decisions are binding upon the Parties to the Agreement, which shall take appropriate measures to implement them.

2.3.The envisaged act of the Partnership Committee

The arbitration procedure set out in Chapter 13 of Title VI of the Agreement provides that where the Parties fail to resolve a dispute by recourse to consultations, the Party that sought consultation may request establishment of an arbitration panel. Article 339(1) of the Agreement requires the Partnership Committee to establish, on the basis of proposals made by the Parties, a list of at least 15 individuals who are willing and able to serve as arbitrators. The list shall be composed of three sub-lists: one sub-list for each Party and one sub-list of individuals who are not nationals of either Party and who shall serve as chairperson of the arbitration panel. Each sub-list shall include at least five individuals. The Partnership Committee shall also ensure that the list is always maintained at that level.

The arbitrators and chairpersons proposed by the Union and by the Republic of Armenia must have specialised expertise in law, international trade and other matters concerning the provisions of Title VI of the Agreement and meet the requirement of independence as specified in Article 339(2) of the Agreement.

On this basis, the list of arbitrators was established by decision adopted by the Partnership Committee in Trade Configuration on 17 October 2019. One of the five candidate arbitrators from the Republic of Armenia, however, no longer fulfills the requirement of independence as specified in Article 339(2) of the Agreement.

The Republic of Armenia has proposed a new candidate arbitrator who has specialised expertise in law, international trade and other matters concerning the provisions of Title VI of the Agreement and is expected to meet the requirement of independence as specified in Article 339(2) of the Agreement.

The purpose of the envisaged act is therefore to define the Union's position relating to the adoption by the Partnership Committee of a decision amending the list of individuals willing and able to serve as arbitrators in dispute settlement proceedings, by replacing the individual among the five candidate arbitrators from the Republic of Armenia who no longer fulfils the conditions of Article 339(2) of the Agreement by the new candidate proposed by the Republic of Armenia.

3.Position to be taken on the Union's behalf

The position to be adopted on behalf of the Union aims at amending the list of individuals who are willing and able to serve as arbitrators in dispute settlement proceedings.

4.Legal basis

4.1.Procedural legal basis