on the position to be taken on behalf of the European Union in the Joint Committee established under the Agreement between the European Union and Japan for an Economic Partnership as regards the adoption of the List of Arbitrators

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 Joint Committee set up by the Agreement between the European Union and Japan for an Economic Partnership, in connection with the envisaged adoption of the List of individuals who are willing and able to serve as arbitrators.

2.Context of the proposal

2.1.The Agreement between the European Union and Japan for an Economic Partnership

The Agreement between the European Union and Japan for an Economic Partnership (‘the Agreement’) aims to liberalise and facilitate trade and investment, as well as to promote a closer economic relationship between the Parties.

The Agreement was concluded by the Council of the European Union on 20 December 2018 after ratification by the European Parliament on 12 December 2018. The Agreement entered into force on 1 February 2019.

2.2.The Joint Committee

Article 22.1 (1) of the Agreement establishes the Joint Committee comprising representatives of both Parties. All decisions and recommendations of the Joint Committee shall be taken by consensus and may be adopted either by meeting in person or in writing (Article 22.2 (3)).

Pursuant to subparagraph 4(f) of Article 22.1 of the Agreement, the Joint Committee has adopted at its first meeting on 10 April 2019 the Rules of Procedure of a Panel and the Code of Conduct for Arbitrators as referred to in Article 21.30 in the Chapter on Dispute Settlement.

2.3.The envisaged act of the Joint Committee

Pursuant to paragraph 1 of Article 21.9, the Joint Committee shall also establish a list of at least nine individuals who are willing and able to serve as arbitrators (‘the envisaged act’).

Such a decision by the Joint Committee should have been made in principle at its first meeting pursuant to paragraph 2 of Article 22.1 of the Agreement. It can however also be made in writing, pursuant to paragraph 3 of Article 22.2 of the Agreement.

Pursuant to paragraph 1 of Article 21.9 the list shall be composed of three sub-lists: a sub-list for each Party and a sub-list of individuals who are not nationals of either Party and who shall act as the chairperson of the panel. Each sub-list shall include at least three individuals. For the establishment or an update of the sub-list of chairpersons, each Party may propose up to three individuals.

A draft list of fifteen individuals who are willing and able to serve as arbitrators has been prepared between the parties.

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

This proposal for a Council Decision establishes the position to be taken on the Union's behalf in the Joint Committee set up by the Agreement between the European Union and Japan for an Economic Partnership with regard to the adoption of the List of individuals who are willing and able to serve as arbitrators.

A draft list of fifteen individuals who are willing and able to serve as arbitrators has been prepared between the parties. The list meets the requirements of paragraph 1 of Article 21.9 of the Agreement, whereby each sub-list shall include at least three individuals. The sub-list for the EU includes four individuals, the sub-list for Japan includes five individuals and the sub-list of jointly agreed chairpersons includes six individuals.

The adoption of these documents is essential for rendering the Agreement's provisions in Chapter 21 (Dispute Settlement) operational and hence for ensuring a smooth implementation of the Agreement.