Proposal for a Council Decision concluding an Agreement in the form of a Protocol between the European Union and the Hashemite Kingdom of Jordan establishing a dispute settlement mechanism applicable to disputes under the trade provisions of the Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Hashemite Kingdom of Jordan, of the other part
Date: 2010-06-22
Institutions: European Commission
Subjects: Jordan, association agreement (EU), protocol to an agreement, ratification of an agreement, settlement of disputes, trade agreement (EU)

EN 

EN 

   EN 

 
 
EUROPEAN COMMISSION 

Brussels, 22.6.2010 
COM(2010)322 final 

2010/0173 (NLE) 

Proposal for a 

COUNCIL DECISION 

concluding an Agreement in the form of a Protocol between the European Union and the 
Hashemite Kingdom of Jordan establishing a dispute settlement mechanism applicable 
to disputes under the trade provisions of the Euro-Mediterranean Agreement 
establishing an Association between the European Communities and their Member 
States, of the one part, and the Hashemite Kingdom of Jordan, of the other part 

EN 

   EN 

 
 
 
  
1. 

2. 

3. 

4. 

5. 

6. 

7. 

EXPLANATORY MEMORANDUM 

The Euro-Mediterranean Agreements contain provisions liberalising trade in goods, 
but  the  dispute  settlement  rules  applicable  to  disputes  concerning  these  provisions 
rely  mainly  on  a  diplomatic  approach  and  can  be  easily  blocked  by  the  party 
complained against. 

In the context of a widening and upgrading of Euro-Mediterranean trade relations, it 
was opportune to create a dispute settlement mechanism applicable to trade disputes 
based on streamlined and effective procedures within firm time limits, and modelled 
on  the  dispute  settlement  mechanisms  of  the  most  recent  agreements  concluded  by 
the  European  Union  and  on  the  WTO  Dispute  Settlement  Understanding.  Such  a 
mechanism  will  increase  the  security  and  predictability  of  our  bilateral  trade 
relations. To this end in the framework of the European Neighbourhood Policy EU-
Jordan  Action  Plan  the  parties  agreed  to  elaborate  rules  of  procedure  for  dispute 
settlement. 

On  24  February  2006  the  Council  authorised  the  Commission  to  open  negotiations 
with  its  partners  from  the  Mediterranean  region  in  order  to  establish  a  dispute 
settlement mechanism related to trade provisions (document 6489/06 MED 4 WTO 
37). 

The  Commission  has  negotiated  in  regional  and  bilateral  mode  with  several 
Mediterranean  partners.  These  negotiations  took  place  in  consultation  with  the 
Committee established by Article 207 of the Treaty and within the framework of the 
negotiating directives issued by the Council. 

Negotiations with Jordan progressed well, and resulted in a draft Agreement that was 
initialled  at  the  Euro-Mediterranean  Trade  Ministerial  Conference  in  Brussels  on  9 
December 2009. This Agreement follows the model of the dispute settlement chapter 
of  current  FTA  negotiations,  and  is  based  on  the  WTO  Dispute  Settlement 
Understanding,  adapted  to  a  bilateral  context.  The  scope  of  the  dispute  settlement 
mechanism includes Title II of the EU-Jordan Association Agreement, with the usual 
exception  of  the  article  on  anti-dumping.  The  Agreement  on  the  liberalisation  of 
agricultural products, initialled on 14 December 2009, is also covered. The text also 
foresees  streamlined  and  effective  procedures  (including  on  the  composition  of  the 
panel  and  compliance  proceedings)  with  clear  time-limits.  It  also  contains 
opportunities  to  settle  disputes  before  establishing  a  panel,  via  consultations  and 
mediation.  Finally,  the  text  incorporates  rules  on  openness  and  transparency  (open 
hearings, amicus curiae briefs, publication of the panel report), as well as an article 
on the relation with the WTO Dispute Settlement Understanding. 

The  Commission  is  invited  to  adopt  the  attached  proposal  for  a  Council  Decision 
concluding this Agreement.  

In parallel, a separate proposal on the signature of this Agreement is also submitted. 
Following  the  conclusion  of  this  Agreement  by  the  Union  and  by  the  Jordanian 
authorities, this Protocol will be annexed to the Association Agreement. 

EN 

2 

   EN 

 
2010/0173 (NLE) 

Proposal for a 

COUNCIL DECISION 

concluding an Agreement in the form of a Protocol between the European Union and the 
Hashemite Kingdom of Jordan establishing a dispute settlement mechanism applicable 
to disputes under the trade provisions of the Euro-Mediterranean Agreement 
establishing an Association between the European Communities and their Member 
States, of the one part, and the Hashemite Kingdom of Jordan, of the other part 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207(4), first sub-paragraph, in conjunction with Article 218(6)(a)(v) thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the consent of the European Parliament1, 

Whereas: 

(1) 

(2) 

(3) 

On  24  February  2006  the  Council  authorised  the  Commission  to  open  negotiations 
with  its  partners  from  the  Mediterranean  region  in  order  to  establish  a  dispute 
settlement mechanism related to trade provisions. 

Negotiations  have  been  conducted  by  the  Commission  in  consultation  with  the 
Committee established by Article 207 of the Treaty and within the framework of the 
negotiating directives issued by the Council.  

These negotiations have been concluded and an Agreement in the form of a Protocol 
between  the  European  Union  and  the  Hashemite  Kingdom  of  Jordan  establishing  a 
dispute settlement mechanism applicable to disputes under the trade provisions of the 
Euro-Mediterranean  Agreement  establishing  and  Association  between  the  European 
Communities and their Member States, of the one part, and the Hashemite Kingdom of 
Jordan, of the other part (hereinafter referred to as the Agreement) was initialled on 9 
December 2009. 

(4) 

The Agreement was signed on behalf of the Union on […], subject to the conclusion 
of the Agreement at a later date, in accordance with Council Decision […]. 

(5) 

The Agreement should be approved, 

1 

OJ C […], […], p. […]. 

EN 

3 

   EN 

 
                                                 
HAS ADOPTED THIS DECISION:  

Article 1 

The  Agreement  in  the  form  of  a  Protocol  between  the  European  Union  and  the  Hashemite 
Kingdom of Jordan establishing a dispute settlement mechanism applicable to disputes under 
the  trade  provisions  of  the  Euro-Mediterranean  Agreement  establishing  and  Association 
between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and  the 
Hashemite Kingdom of Jordan, of the other part, is hereby approved on behalf of the Union.  

The text of the Agreement is annexed to this Decision.  

This Decision shall be published in the Official Journal of the European Union. 

Article 2 

This Decision is addressed to the Member States. 

Done at Brussels, 

For the Council 
The President 

EN 

4 

   EN 

 
 
 
ANNEX  

PROTOCOL BETWEEN THE EUROPEAN UNION AND THE HASHEMITE 
KINGDOM OF JORDAN ESTABLISHING A DISPUTE SETTLEMENT 
MECHANISM APPLICABLE TO DISPUTES UNDER THE TRADE 
PROVISIONS OF THE EURO-MEDITERRANEAN AGREEMENT 
ESTABLISHING AN ASSOCIATION BETWEEN THE EUROPEAN 
COMMUNITIES AND THEIR MEMBER STATES, OF THE ONE PART, 
AND THE HASHEMITE KINGDOM OF JORDAN, OF THE OTHER PART 

The European Union, of the one part, and  

The Hashemite Kingdom of Jordan, of the other part 

HAVE AGREED AS FOLLOWS:  

CHAPTER I 

OBJECTIVE AND SCOPE  

Article 1 

Objective 

The objective of this Protocol is to avoid and settle any trade dispute between the Parties with 
a view to arrive at, where possible, a mutually agreed solution. 

Article 2 

Application of the Protocol  

The provisions of this Protocol apply with respect to any difference concerning the 
interpretation  and  application  of  the  provisions  of  Title  II  (with  the  exception  of 
Article  23)  of  the  Euro-Mediterranean  Agreement  establishing  an  Association 
between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and 
the  Hashemite  Kingdom  of  Jordan,  of  the  other  part  (hereafter  "the  Association 
Agreement"), except as otherwise expressly provided.2 Article 97 of the Association 
Agreement applies to disputes relating to the application and interpretation of other 
provisions of the Association Agreement. 

The  procedures  of  this  Protocol  shall  apply  if,  60  days  after  a  dispute  has  been 
referred  to  the  Association  Council  pursuant  to  Article  97  of  the  Association 
Agreement, the Association Council has failed to settle the dispute.  

The  provisions  of  this  Protocol  are  without  prejudice  to  Article  34  of  the  Protocol  concerning  the 
definition of the concept of «originating products» and methods of administrative cooperation.. 

1. 

2. 

2 

EN 

5 

   EN 

 
                                                 
3. 

For the purposes of paragraph 2, a dispute shall be deemed to be resolved when the 
Association  Council  has  taken  a  decision  as  provided  for  in  Article  97.2  of  the 
Association Agreement, or when it has declared that there is no longer a dispute.  

CHAPTER II  

CONSULTATIONS AND MEDIATION  

Article 3 

Consultations  

1. 

2. 

3. 

4. 

5. 

The Parties shall endeavour to resolve any difference regarding the interpretation and 
application of the provisions referred to in Article 2 by entering into consultations in 
good  faith  with  the  aim  of  reaching  a  prompt,  equitable,  and  mutually  agreed 
solution. 

A  Party  shall  seek  consultations  by  means  of  a  written  request  to  the  other  Party, 
copied  to  the  subcommittee  "industry,  trade,  services  and  investment  promotion", 
identifying  any  measure  at  issue  and  the  provisions  of  the  Association  Agreement 
that it considers applicable. 

Consultations shall be held within 40 days of the date of receipt of the request and 
take  place,  unless  the  Parties  agree  otherwise,  on  the  territory  of  the  Party 
complained against. The consultations shall be deemed concluded within 60 days of 
the date of receipt of the request, unless both Parties agree to continue consultations. 
Consultations,  in  particular  all  information  disclosed  and  positions  taken  by  the 
Parties during these proceedings, shall be confidential, and without prejudice to the 
rights of either Party in any further proceedings. 

Consultations  on  matters  of  urgency,  including  those  regarding  perishable  or 
seasonal goods shall be held within 15 days of the date of receipt of the request, and 
shall be deemed concluded within 30 days of the date of receipt of the request. 

If  the  Party  to  which  the  request  is  made  does  not  respond  to  the  request  for 
consultations within 10 working days of the date of its receipt, or if consultations are 
not  held  within  the  timeframes  laid  down  in  paragraph  3  or  in  paragraph  4 
respectively,  or  if  consultations  have  been  concluded  and  no  agreement  has  been 
reached  on  a  mutually  agreed  solution,  the  complaining  Party  may  request  the 
establishment of an arbitration panel in accordance with Article 5. 

Article 4 

Mediation 

EN 

6 

   EN 

 
1. 

2. 

3. 

4. 

5. 

6. 

7. 

If  consultations  fail  to  produce  a  mutually  agreed  solution,  the  Parties  may,  by 
mutual  agreement,  seek  recourse  to  a  mediator.  Any  request  for  mediation  must  be 
made  in  writing  to  the  subcommittee  "industry,  trade,  services  and  investment 
promotion"  and  state  any  measure  which  has  been  the  subject  of  consultations  as 
well  as  the  mutually  agreed  terms  of  reference  for  the  mediation.  Each  Party 
undertakes to accord sympathetic consideration to requests for mediation.  

Unless the Parties agree on a mediator within five working days of the date of receipt 
of the request for mediation, the chairpersons of the subcommittee "industry, trade, 
services and investment promotion", or the chairpersons' delegate, shall select by lot 
a mediator from the pool of individuals who are on the list referred to in Article 19 
and are not nationals of either Party. The selection shall be made within 10 working 
days of the date of receipt of the request for mediation. The mediator will convene a 
meeting  with  the  Parties  no  later  than  30  days  after  being  selected.  The  mediator 
shall receive the submissions of each Party no later than 15 days before the meeting 
and may request additional information from the Parties or from experts or technical 
advisors  as  she  or  he  deems  necessary.  Any  information  obtained  in  this  manner 
must  be  disclosed  to  each  of  the  Parties  and  submitted  for  their  comments.  The 
mediator shall notify an opinion no later than 45 days after having been selected.  

The mediator’s opinion may include a recommendation on how to resolve the dispute 
consistent with the provisions referred to in Article 2. The mediator’s opinion is non-
binding. 

The  Parties  may  agree  to  amend  the  time  limits  referred  to  in  paragraph  2.  The 
mediator  may  also  decide  to  amend  these  time  limits  upon  request  of  any  of  the 
Parties,  given  the  particular  difficulties  experienced  by  the  Party  concerned  or  the 
complexities of the case.  

The  proceedings  involving  mediation,  in  particular  the  mediator's  opinion  and  all 
information  disclosed  and  positions  taken  by  the  Parties  during  these  proceedings, 
shall be confidential, and without prejudice to the rights of either Party in any further 
proceedings. 

If  the  Parties  agree,  procedures  for  mediation  may  continue  while  the  arbitration 
procedure proceeds.  

Replacement of a mediator shall take place only for the reasons and according to the 
procedures detailed in rules 18 to 21 of the Rules of Procedure.  

EN 

7 

   EN 

 
CHAPTER III 

DISPUTE SETTLEMENT PROCEDURES 

SECTION I – ARBITRATION PROCEDURE  

Article 5 

Initiation of the arbitration procedure 

Where the Parties have failed to resolve the dispute by recourse to consultations as 
provided for in Article 3, or by recourse to mediation as provided for in Article 4, the 
complaining Party may request the establishment of an arbitration panel. 

The request for the establishment of an arbitration panel shall be made in writing to 
the  Party  complained  against  and  the  subcommittee  "industry,  trade,  services  and 
investment  promotion".  The  complaining  Party  shall  identify  in  its  request  the 
specific measure at issue, and it shall explain how such measure constitutes a breach 
of  the  provisions  referred  to  in  Article 2.  The  establishment  of  an  arbitration  panel 
shall be requested no later than 18 months from the date of receipt of the request for 
consultations, without prejudice to the rights of the complaining Party to request new 
consultations on the same matter in the future.  

Article 6 

Establishment of the arbitration panel 

An arbitration panel shall be composed of three arbitrators. 

Within 10 working days of the date of receipt by the Party complained against of the 
request for the establishment of an arbitration panel, the Parties shall consult in order 
to reach an agreement on the composition of the arbitration panel.  

trade,  services  and 

In  the  event  that  the  Parties  are  unable  to  agree  on  its  composition  within  the  time 
frame  laid  down  in  paragraph  2,  either  party  may  request  the  chairpersons  of  the 
subcommittee  "industry, 
the 
chairpersons'  delegate,  to  select  all  three  members  by  lot  from  the  list  established 
under Article 19, one among the individuals proposed by the complaining Party, one 
among the individuals proposed by the Party complained against and one among the 
individuals selected by the Parties to act as chairperson. Where the Parties agree on 
one or more of the members of the arbitration panel, any remaining members shall be 
selected by the same procedure.  

investment  promotion",  or 

The  chairpersons  of  the  subcommittee  "industry,  trade,  services  and  investment 
promotion",  or  the  chairpersons'  delegate,  shall  select  the  arbitrators  within  five 
working days of the request referred to in paragraph 3 by either Party. 

The date of establishment of the arbitration panel shall be the date on which the three 
arbitrators are selected. 

1. 

2. 

1. 

2. 

3. 

4. 

5. 

EN 

8 

   EN 

 
6. 

Replacement of arbitrators shall take place only for the reasons and according to the 
procedures detailed in rules 18 to 21 of the Rules of Procedure.  

Article 7 

Interim panel report  

The arbitration panel shall issue an interim report to the Parties setting out the findings of fact, 
the  applicability  of  relevant  provisions  and  the  basic  rationale  behind  any  findings  and 
recommendations that it makes, not later than 120 days from the date of establishment of the 
arbitration panel. Any Party may submit a written request for the arbitration panel to review 
precise  aspects  of  the  interim  report  within  15  days  of  its  notification.  The  findings  of  the 
final  panel  ruling  shall  include  a  discussion  of  the  arguments  made  at  the  interim  review 
stage. 

Article 8 

Arbitration panel ruling 

1. 

2. 

3. 

The  arbitration  panel  shall  notify  its  ruling  to  the  Parties  and  to  the  subcommittee 
"industry, trade, services and investment promotion" within 150 days from the date 
of  the  establishment  of  the  arbitration  panel.  Where  it  considers  that  this  deadline 
cannot be met, the chairperson of the arbitration panel must notify the Parties and the 
subcommittee  "industry,  trade,  services  and  investment  promotion"  in  writing, 
stating the reasons for the delay and the date on which the panel plans to conclude its 
work. Under no circumstances should the ruling be notified later than 180 days from 
the date of the establishment of the arbitration panel. 

In  cases  of  urgency,  including  those  involving  perishable  or  seasonal  goods,  the 
arbitration panel shall make every effort to notify its ruling within 75 days from the 
date of its establishment. Under no circumstance should it take longer than 90 days 
from its establishment. The arbitration panel shall give a preliminary ruling within 10 
days of its establishment on whether it deems the case to be urgent. 

The  arbitration  panel  shall,  at  the  request  of  both  Parties,  suspend  its  work  at  any 
time for a period agreed by the Parties not exceeding 12 months and shall resume its 
work at the end of this agreed period at the request of the complaining Party. If the 
complaining  Party  does  not  request  the  resumption  of  the  arbitration  panel's  work 
before the expiry of the agreed suspension period, the procedure shall be terminated. 
The suspension and termination of the arbitration panel's work are without prejudice 
to the rights of either Party in another proceeding on the same matter.  

EN 

9 

   EN 

 
SECTION II – COMPLIANCE  

Article 9 

Compliance with the arbitration panel ruling  

Each Party shall take any measure necessary to comply with the arbitration panel ruling, and 
the Parties will endeavour to agree on the period of time to comply with the ruling.  

Article 10 

The reasonable period of time for compliance  

1. 

2. 

No  later  than  30  days  after  the  receipt  of  the  notification  of  the  arbitration  panel 
ruling to the Parties, the Party complained against shall notify the complaining Party 
and  the  subcommittee  "industry,  trade,  services  and  investment  promotion"  of  the 
time  it  will  require  for  compliance  (reasonable  period  of  time),  if  immediate 
compliance is not possible. 

If  there  is  disagreement  between  the  Parties  on  the  reasonable  period  of  time  to 
comply with the arbitration panel ruling, the complaining Party shall, within 20 days 
of  the  receipt  of  the  notification  made  under  paragraph  1  by  the  Party  complained 
against,  request  in  writing  the  arbitration  panel  to  determine  the  length  of  the 
reasonable period of time. Such request shall be notified simultaneously to the other 
party and to the subcommittee "industry, trade, services and investment promotion". 
The  arbitration  panel  shall  notify  its  ruling  to  the  Parties  and  to  the  subcommittee 
"industry, trade, services and investment promotion" within 30 days from the date of 
the submission of the request.  

3. 

The reasonable period of time may be extended by mutual agreement of the Parties. 

Article 11 

1. 

2. 

Review of any measure taken to comply with the arbitration panel ruling  

The  Party  complained  against  shall  notify  the  other  Party  and  the  subcommittee 
"industry, trade, services and investment promotion" before the end of the reasonable 
period of time of any measure that it has taken to comply with the arbitration panel 
ruling. 

In the event that there is disagreement between the Parties concerning the existence 
or  the  consistency  of  any  measure  notified  under  paragraph  1  with  the  provisions 
referred to in Article 2, the complaining Party may request in writing the arbitration 
panel to rule on the matter. Such request shall identify the specific measure at issue 
and it shall explain how such measure is inconsistent with the provisions referred to 
in Article 2. The arbitration panel shall notify its ruling within 90 days of the date of 
the  submission  of  the  request.  In  cases  of  urgency,  including  those  involving 
perishable  or  seasonal  goods,  the  arbitration  panel  shall  notify  its  ruling  within  45 
days of the date of the submission of the request.  

EN 

10 

   EN 

 
1. 

2. 

3. 

4. 

1. 

Article 12 

Temporary remedies in case of non-compliance  

If the Party complained against fails to notify any measure taken to comply with the 
arbitration panel ruling before the expiry of the reasonable period of time, or if the 
arbitration  panel  rules  that  the  measure  notified  under  Article  11  paragraph  1  is 
inconsistent with that Party’s obligations under the provisions referred to in Article 2, 
the Party complained against shall, if so requested by the complaining Party, present 
an  offer  for  temporary  compensation.  The  complaining  Party  may  request  such  an 
offer also before the expiry of the reasonable period of time.  

If  no  agreement  on  compensation  is  reached  within  30  days  after  the  end  of  the 
reasonable  period  of  time  or  of  the  arbitration  panel  ruling  under  Article  11  that  a 
measure taken to comply is inconsistent with the provisions referred to in Article 2, 
the complaining Party shall be entitled, upon notification to the other Party and to the 
subcommittee  "industry,  trade,  services  and  investment  promotion",  to  suspend 
obligations arising from any provision referred to in Article 2 at a level equivalent to 
the  nullification  or  impairment  caused  by  the  violation.  In  adopting  such  measures 
the complaining Party shall take into consideration their impact on the economy of 
the Party complained against. The complaining Party may implement the suspension 
10 working days after the date of receipt of the notification by the Party complained 
against,  unless  the  Party  complained  against  has  requested  arbitration  under 
paragraph 3.  

If  the  Party  complained  against  considers  that  the  level  of  suspension  is  not 
equivalent to the nullification or impairment caused by the violation, it may request 
in writing the arbitration panel to rule on the matter. Such request shall be notified to 
the  other  Party  and  to  the  subcommittee  "industry,  trade,  services  and  investment 
promotion"  before  the  expiry  of  the  period  of  10  working  days  referred  to  in 
paragraph  2.  The  arbitration  panel,  having  sought  if  appropriate  the  opinion  of 
experts,  shall  notify  its  ruling  on  the  level  of  the  suspension  of  obligations  to  the 
Parties and to the institutional body responsible for trade matters within 30 days of 
the date of the submission of the request. Obligations shall not be suspended until the 
arbitration panel has notified its ruling, and any suspension shall be consistent with 
the arbitration panel ruling. 

The suspension of obligations shall be temporary and shall be applied only until any 
measure found to be inconsistent with the provisions referred to in Article 2 has been 
withdrawn  or  amended  so  as  to  bring  it  into  conformity  with  those  provisions,  as 
established under Article 13, or until the Parties have agreed to settle the dispute.  

Article 13 

Review of any measure taken to comply after the suspension of obligations  

The  Party  complained  against  shall  notify  the  other  Party  and  the  subcommittee 
"industry, trade, services and investment promotion" of any measure it has taken to 
comply  with  the  ruling  of  the  arbitration  panel  and  of  its  request  for  an  end  to  the 
suspension of obligations applied by the complaining Party. 

EN 

11 

   EN 

 
2. 

If the Parties do not reach an agreement on the compatibility of the notified measure 
with the provisions referred to in Article 2 within 30 days of the date of receipt of the 
notification,  the  complaining  Party  shall  request  in  writing  the  arbitration  panel  to 
rule  on  the  matter.  Such  request  shall  be  notified  simultaneously  to  the  other  Party 
and  to  the  subcommittee  "industry,  trade,  services  and  investment  promotion".  The 
arbitration  panel  ruling  shall  be  notified  to  the  Parties  and  to  the  subcommittee 
"industry, trade, services and investment promotion" within 45 days of the date of the 
submission  of  the  request.  If  the  arbitration  panel  rules  that  any  measure  taken  to 
comply is in conformity with the provisions referred to in Article 2, the suspension of 
obligations shall be terminated. 

SECTION III – COMMON PROVISIONS  

Article14  

Mutually Agreed Solution  

The Parties may reach a mutually agreed solution to a dispute under this Protocol at any time. 
They shall notify the subcommittee "industry, trade, services and investment promotion" and 
the arbitration panel of any such solution. Upon notification of the mutually agreed solution, 
the panel shall terminate its work and the procedure shall be terminated.  

Article 15 

Rules of Procedure  

1. 

2. 

1. 

Dispute  settlement  procedures  under  Chapter  III  of  this  Protocol  shall  be  governed 
by the Rules of Procedure annexed to this Protocol. 

Any meeting of the arbitration panel shall be open to the public in accordance with 
the Rules of Procedure, unless the Parties agree otherwise.  

Article 16 

Information and technical advice  

At  its  own  initiative,  or  at  the  request  of  a  Party,  the  arbitration  panel  may  obtain 
information  it  deems  appropriate  for  the  arbitration  panel  proceeding.  In  particular, 
the  arbitration  panel  has  the  right  to  seek  the  relevant  opinion  of  experts.  The 
arbitration  panel  shall  consult  the  Parties  before  choosing  such  experts.  Any 
information  obtained  in  this  manner  must  be  disclosed  to  each  of  the  Parties  and 
submitted for their comments.  

2. 

Interested  persons  established  in  the  Parties  are  authorised  to  submit  amicus  curiae 
briefs to the arbitration panels in accordance with the Rules of Procedure.  

EN 

12 

   EN 

 
Article 17 

Rules of interpretation  

Any arbitration panel shall interpret the provisions referred to in Article 2 in accordance with 
customary rules of interpretation of public international law, including the Vienna Convention 
on  the  Law  of  Treaties.  The  rulings  of  the  arbitration  panel  cannot  add  to  or  diminish  the 
rights and obligations provided in the provisions referred to in Article 2. 

1. 

2. 

1. 

2. 

Article 18 

Arbitration panel decisions and ruling  

The  arbitration  panel  shall  make  every  effort  to  take  any  decision  by  consensus. 
Where, nevertheless, a decision cannot be arrived at by consensus, the matter at issue 
shall  be  decided  by  majority  vote.  However,  in  no  case  dissenting  opinions  of 
arbitrators shall be published. 

Any ruling of the arbitration panel shall be binding on the Parties and shall not create 
any  rights  or  obligations  to  physical  or  legal  persons.  The  ruling  shall  set  out  the 
findings  of  fact,  the  applicability  of  the  relevant  provisions  of  the  Association 
Agreement and the basic rationale behind any findings and conclusions that it makes. 
The  subcommittee  "industry,  trade,  services  and  investment  promotion"  shall  make 
the arbitration panel ruling publicly available in its entirety unless it decides not to do 
so in order to ensure the confidentiality of business confidential information.  

CHAPTER IV  

GENERAL PROVISIONS  

Article 19 

Lists of arbitrators  

The  subcommittee  "industry,  trade,  services  and  investment  promotion"  shall,  no 
later than six months after the entry into force of this Protocol, establish a list of at 
least  15  individuals  who  are  willing  and  able  to  serve  as  arbitrators.  Each  of  the 
Parties shall propose at least five individuals to serve as arbitrators. The two Parties 
shall also select at least five individuals that are not nationals of either Party and who 
shall act as chairperson to the arbitration panel. The subcommittee "industry, trade, 
services and investment promotion" will ensure that the list is always maintained at 
this level. 

Arbitrators shall have specialised knowledge or experience of law and international 
trade.  They  shall  be  independent,  serve  in  their  individual  capacities  and  not  take 
instructions  from  any  organisation  or  government,  or  be  affiliated  with  the 
government  of  any  of  the  Parties,  and  shall  comply  with  the  Code  of  Conduct 
annexed to this Protocol. 

EN 

13 

   EN 

 
3. 

1. 

2. 

The  subcommittee  "industry,  trade,  services  and  investment  promotion"  may 
establish  additional  lists  of  at  least  15  individuals  having  a  sectoral  expertise  in 
specific  matters  covered  by  the  Association  Agreement.  When  recourse  is  made  to 
the  selection  procedure  of  Article  6  paragraph  2,  the  chairpersons  of  the 
subcommittee  "industry,  trade,  services  and  investment  promotion"  may  use  a 
sectoral list upon agreement of both Parties. 

Article 20 

Relation with WTO obligations  

Recourse  to  the  dispute  settlement  provisions  of  this  Protocol  shall  be  without 
prejudice to any action in the WTO framework, including dispute settlement action.  

However, where a Party has, with regard to a particular measure, instituted a dispute 
settlement  proceeding,  either  under  this  Protocol  or  under  the  WTO  Agreement,  it 
may not institute a dispute settlement proceeding regarding the same measure in the 
other forum until the first proceeding has ended. In addition, a Party shall not seek 
redress  for  the  breach  of  an  obligation  which  is  identical  under  the  Association 
Agreement and under the WTO Agreement in the two forums. In such case, once a 
dispute  settlement  proceeding  has  been  initiated,  the  Party  shall  not  bring  a  claim 
seeking redress for the breach of the identical obligation under the other agreement to 
the  other  forum,  unless  the  forum  selected  fails  for  procedural  or  jurisdictional 
reasons to make findings on the claim seeking redress of that obligation. 

3. 

For the purposes of paragraph 2,  

– 

– 

dispute  settlement  proceedings  under  the  WTO  Agreement  are  deemed  to  be 
initiated by a Party’s request for the establishment of a panel under Article 6 of 
the  Understanding  on  Rules  and  Procedures  Governing  the  Settlement  of 
Disputes  of  the  WTO  (DSU)  and  are  deemed  to  be  ended  when  the  Dispute 
Settlement Body adopts the Panel's report, and the Appellate Body's report as 
the case may be, under Articles 16 and 17(14) of the DSU; 

dispute  settlement  proceedings  under  this  Protocol  are  deemed  to  be  initiated 
by a Party's request for the establishment of an arbitration panel under Article 5 
paragraph 1 and are deemed to be ended when the arbitration panel notifies its 
ruling  to  the  Parties  and  to  the  subcommittee  "industry,  trade,  services  and 
investment promotion" under Article 8. 

4. 

Nothing in this Protocol shall preclude a Party from implementing the suspension of 
obligations  authorised  by  the  Dispute  Settlement  Body  of  the  WTO.  The  WTO 
Agreement  shall  not  be  invoked  to  preclude  a  Party  from  suspending  obligations 
under this Protocol.  

EN 

14 

   EN 

 
Article 21 

Time limits  

1. 

2. 

1. 

2. 

3. 

All  time  limits  laid  down  in  this  Protocol,  including  the  limits  for  the  arbitration 
panels  to  notify  their  rulings,  shall  be  counted  in  calendar  days  from  the  day 
following the act or fact to which they refer, unless otherwise specified. 

Any time limit referred to in this Protocol may be modified by mutual agreement of 
the Parties. The Parties undertake to accord sympathetic consideration to requests for 
extensions of any time limit by reason of difficulties faced by any Party in complying 
with  the  procedures  of  this  Protocol.  Upon  request  of  a  Party,  the  arbitration  panel 
may  modify  the  time  limits  applicable  in  the  proceedings,  taking  into  account  the 
different level of development of the Parties. 

Article 22 

Review and Modification of the Protocol  

After the entry into force of this Protocol and its Annexes, the Association Council 
may  at  any  time  review  their  implementation,  with  a  view  to  decide  their 
continuation, modification or termination.  

In  this  review,  the  Association  Council  may  consider  the  possibility  of  creating  an 
Appellate Body common to several Euro-Mediterranean Agreements. 

The Association Council may decide to modify this Protocol and its annexes.  

Article 23 

Entry into force  

This Protocol will be approved by the Parties in accordance with their own procedures. This 
Protocol  shall  enter  into  force  on  the  first  day  of  the  second  month  following  the  date  on 
which  the  Parties  notify  each  other  that  the  procedures  referred  to  in  this  Article  have  been 
completed. 

Done  at  ………….,  in  duplicate,  on  the  ..........................2010,  in  the  Bulgarian,  Czech, 
Danish,  Dutch,  English,  Estonian,  Finnish,  French,  German,  Greek,  Hungarian,  Italian, 
Latvian,  Lithuanian,  Maltese,  Polish,  Portuguese,  Romanian,  Slovak,  Slovenian,  Spanish, 
Swedish and Arabic languages, each of these texts being equally authentic. 

For the European Union 
[…] 

For the Hashemite Kingdom of Jordan  
[…] 

EN 

15 

   EN 

 
ANNEX I: RULES OF PROCEDURE FOR ARBITRATION 

ANNEXES 

ANNEX  II:  CODE  OF  CONDUCT  FOR  MEMBERS  OF  ARBITRATION  PANELS  AND 
MEDIATORS 

EN 

16 

   EN 

 
 
ANNEX I 

RULES OF PROCEDURE 

FOR ARBITRATION 

GENERAL PROVISIONS 

1. 

In the Protocol and under these rules: 

“adviser”  means  a  person  retained  by  a  Party  to  advise  or  assist  that  Party  in 
connection with the arbitration panel proceeding; 

“complaining  Party”  means  any  Party  that  requests  the  establishment  of  an 
arbitration panel under Article 5 of this Protocol; 

“Party complained against” means the Party that is alleged to be in violation of the 
provisions referred to in Article 2 of this Protocol; 

“arbitration panel” means a panel established under Article 6 of this Protocol; 

“representative  of  a  Party”  means  an  employee  or  any  person  appointed  by  a 
government department or agency or any other public entity of a Party;  

“day” means a calendar day, unless otherwise specified. 

The  Party  complained  against  shall  be  in  charge  of  the  logistical  administration  of 
dispute  settlement  proceedings,  in  particular  the  organisation  of  hearings,  unless 
otherwise  agreed.  However,  the  European  Union  shall  bear  the  expenses  derived 
from  all  organizational  matters  regarding  consultations,  mediation  and  arbitration, 
with the exception of the remuneration and the expenses to be paid to the mediators 
and arbitrators, which shall be shared.  

NOTIFICATIONS 

The  Parties  and  the  arbitration  panel  shall  transmit  any  request,  notice,  written 
submission or other document by e-mail, with a copy submitted on the same day by 
facsimile transmission, registered post, courier, delivery against receipt, or any other 
means  of  telecommunication  that  provides  a  record  of  the  sending  thereof.  Unless 
proven  otherwise,  an  e-mail  message  shall  be  deemed  to  be  received  on  the  same 
date of its sending.  

A  Party  shall  provide  an  electronic  copy  of  each  of  its  written  submissions  to  the 
other Party and to each of the arbitrators. A paper copy of the document shall also be 
provided. 

All  notifications  shall  be  addressed  to  the  Foreign  Ministry  of  Jordan  and  to  the 
Directorate-General for Trade of the European Commission, respectively. 

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

2. 

3. 

4. 

5. 

6. 

EN 

17 

   EN 

 
7. 

8. 

9. 

If the last day for delivery of a document falls on an official holiday or rest day of 
Jordan or of the Union, the document may be delivered on the next business day. The 
Parties  shall  exchange  a  list  of  dates  of  their  official  holidays  and  rest  days  on  the 
first Monday of every December for the following year. No documents, notifications 
or requests of any kind shall be deemed to be received on an official holiday or rest 
day. 

Depending  on  the  object  of  the  provisions  under  dispute,  all  requests  and 
notifications addressed to the subcommittee "industry, trade, services and investment 
promotion" in accordance with this Protocol shall also be copied to the other relevant 
sub-committees established under the Association Agreement. 

COMMENCING THE ARBITRATION 

(a) If pursuant to Article 6 of this Protocol or to rules 19, 20 or 49 of these Rules of 
Procedure, the members of the arbitration panel are selected by lot, representatives of 
both Parties shall be present when lots are drawn.  

(b)  Unless  the  Parties  agree  otherwise,  they  shall  meet  the  arbitration  panel  within 
seven working days of its establishment in order to determine such matters that the 
Parties  or  the  arbitration  panel  deem  appropriate,  including  the  remuneration  and 
expenses  to  be  paid  to  the  arbitrators,  which  will  be  in  accordance  with  WTO 
standards.  Members  of  the  arbitration  panel  and  representatives  of  the  Parties  may 
take part in this meeting via telephone or video conference. 

10. 

(a) Unless the Parties agree otherwise, within five working days from the date of the 
selection of the arbitrators, the terms of reference of the arbitration panel shall be: 

“to examine, in the light of the relevant provisions of the Association Agreement, the 
matter referred to in the request for establishment of the arbitration panel, to rule on 
the compatibility of the measure in question with the provisions referred to in Article 
2 of the Protocol and to make a ruling in accordance with Article 8 of the Protocol 
on Dispute Settlement.”  

(b)  The  Parties  must  notify  the  agreed  terms  of  reference  to  the  arbitration  panel 
within three working days of their agreement. 

INITIAL SUBMISSIONS 

11. 

12. 

The  complaining  Party  shall  deliver  its  initial  written  submission  no  later  than  20 
days  after  the  date  of  establishment  of  the  arbitration  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 ARBITRATION PANELS 

The  chairperson  of  the  arbitration  panel  shall  preside  at  all  its  meetings.  An 
arbitration  panel  may  delegate  to  the  chairperson  authority  to  make  administrative 
and procedural decisions. 

EN 

18 

   EN 

 
 
 
 
13. 

14. 

15. 

16. 

17. 

18. 

19. 

Unless  otherwise  provided  in  this  Protocol,  the  arbitration  panel  may  conduct  its 
activities  by  any  means,  including  telephone,  facsimile  transmissions  or  computer 
links. 

Only  arbitrators  may  take  part  in  the  deliberations  of  the  arbitration  panel,  but  the 
arbitration panel may permit its assistants to be present at its deliberations. 

The drafting of any ruling shall remain the exclusive responsibility of the arbitration 
panel and must not be delegated. 

Where  a  procedural  question  arises  that  is  not  covered  by  the  provisions  of  this 
Protocol and its annexes, the arbitration panel, after consulting the Parties, may adopt 
an appropriate procedure that is compatible with those provisions. 

When  the  arbitration  panel  considers  that  there  is  a  need  to  modify  any  time  limit 
applicable  in  the  proceedings  or  to  make  any  other  procedural  or  administrative 
adjustment,  it  shall  inform  the  Parties  in  writing  of  the  reasons  for  the  change  or 
adjustment and of the period or adjustment needed. The arbitration panel may adopt 
such change or modification after consulting the Parties. The time limits of Article 8 
paragraph 2 of this Protocol shall not be modified.  

REPLACEMENT 

If  an  arbitrator  is  unable  to  participate  in  the  proceeding,  withdraws,  or  must  be 
replaced, a replacement shall be selected in accordance with Article 6 paragraph 3.  

Where a Party considers that an arbitrator does not comply with the requirements of 
the Code of Conduct and for this reason should be replaced, this Party should notify 
the  other  Party  within  15  days  from  the  time  at  which  it  came  to  know  of  the 
circumstances underlying the arbitrator's material violation of the Code of Conduct. 

Where a Party considers that an arbitrator other than the chairperson does not comply 
with the requirements of the Code of Conduct, the Parties shall consult and, if they so 
agree, replace the arbitrator and select a replacement following the procedure set out 
in Article 6 paragraph 3 of this Protocol.  

If the Parties fail to agree on the need to replace an arbitrator, any Party may request 
that  such  matter  be  referred  to  the  chairperson  of  the  arbitration  panel,  whose 
decision shall be final.  

If the chairperson finds that an arbitrator does not comply with the requirements of 
the Code of Conduct, she or he shall select a new arbitrator by lot among the pool of 
individuals  referred  to  under  Article  19  paragraph1  of  this  Protocol  of  which  the 
original arbitrator was a Member. If the original arbitrator was chosen by the Parties 
pursuant to Article 6 paragraph 2 of this Protocol, the replacement shall be selected 
by  lot  among  the  pools  of  individuals  that  have  been  proposed  by  the  complaining 
Party  and  by  the  Party  complained  against  under  Article  19  paragraph  1  of  the 
Protocol. The selection of the new arbitrator shall be done within five working days 
of  the  date  of  the  submission  of  the  request  to  the  chairperson  of  the  arbitration 
panel.  

EN 

19 

   EN 

 
20. 

Where  a  Party  considers  that  the  chairperson  of  the  arbitration  panel  does  not 
comply  with  the  requirements  of  the  Code  of  Conduct,  the  Parties  shall  consult 
and, if they so agree, replace the chairperson and select a replacement following 
the procedure set out in Article 6 paragraph 3 of this Protocol.  

If the Parties fail to agree on the need to replace the chairperson, any Party may 
request that such matter be referred to one of the remaining members of the pool of 
individuals  selected  to  act  as  chairpersons  under  Article  19  paragraph  1  of  this 
Protocol.  Her  or  his  name  shall  be  drawn  by  lot  by  the  chairpersons  of  the 
subcommittee  "industry, 
the 
chairpersons'  delegate.  The  decision  by  this  person  on  the  need  to  replace  the 
chairperson shall be final.  

investment  promotion",  or 

trade,  services  and 

If  this  person  decides  that  the  original  chairperson  does  not  comply  with  the 
requirements of the Code of Conduct, she or he shall select a new chairperson by lot 
among the remaining pool of individuals referred to under Article 19 paragraph 1 of 
this  Protocol  who  may  act  as  chairpersons.  This  selection  of  the  new  chairperson 
shall be done within five working days of the date of the submission of the request 
referred to in this paragraph. 

21. 

The arbitration panel proceedings shall be suspended for the period taken to carry out 
the procedures provided for in rules 18, 19 and 20. 

Where a Party considers that an arbitrator does not comply with the requirements of 
the Code of Conduct and for this reason should be replaced, this Party should notify 
the  other  Party  within  15  days  from  the  time  at  which  it  came  to  know  of  the 
circumstances underlying the arbitrator's material violation of the Code of Conduct. 

HEARINGS 

22. 

23. 

24. 

25. 

26. 

The  chairperson  shall  fix  the  date  and  time  of  the  hearing  in  consultation  with  the 
Parties and the other members of the arbitration panel, and confirm this in writing to 
the  Parties.  This  information  shall  also  be  made  publicly  available  by  the  Party  in 
charge of the logistical administration of the proceedings if the hearing is open to the 
public. Unless a Party disagrees, the arbitration panel may decide not to convene a 
hearing. 

Unless  the  Parties  agree  otherwise,  the  hearing  shall  be  held  in  Brussels  if  the 
complaining Party is Jordan and in Amman if the complaining Party is the Union. 

The  arbitration  panel  may  convene  one  additional  hearing  only  in  exceptional 
circumstances.  No  additional  hearing  shall  be  convened  for  the  procedures 
established under Article 10(2), 11(2), 12(3) and 13(2) of this Protocol. 

All arbitrators shall be present during the entirety of any hearings. 

The  following  persons  may  attend  the  hearing,  irrespective  of  whether  the 
proceedings are open to the public or not: 

(a) representatives of the Parties; 

(b) advisers to the Parties; 

EN 

20 

   EN 

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

(d) arbitrators’ assistants. 

27. 

28. 

Only the representatives and advisers of the Parties may address the arbitration panel. 

No later than five working days before the date of a hearing, each Party shall deliver 
to the arbitration 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 hearings of the arbitration panels shall be open to the public, unless the Parties 
decide otherwise. If the Parties decide that the hearing is closed to the public, part of 
the  hearing  may,  however,  be  open  to  the  public  if  the  arbitration  panel,  on 
application  by  the  Parties,  so  decides.  However  the  arbitration  panel  shall  meet  in 
closed session when the submission and arguments of a Party contains confidential 
commercial information.  

29. 

The arbitration panel shall conduct the hearing in the following manner: 

Argument 

(a) argument of the complaining Party 

(b) argument of the Party complained against  

Rebuttal Argument 

(a) argument of the complaining Party 

(b) counter-reply of the Party complained against 

30. 

31. 

32. 

33. 

34. 

The  arbitration  panel  may  direct  questions  to  either  Party  at  any  time  during  the 
hearing. 

The arbitration panel shall arrange for a transcript of each hearing to be prepared and 
delivered as soon as possible to the Parties. 

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

QUESTIONS IN WRITING 

The  arbitration  panel  may  at  any  time  during  the  proceedings  address  questions  in 
writing  to  one  or  both  Parties.  Each  of  the  Parties  shall  receive  a  copy  of  any 
questions put by the arbitration panel. 

A  Party  shall  also  provide  a  copy  of  its  written  response  to  the  arbitration  panel’s 
questions  to  the  other  Party.  Each  Party  shall  be  given  the  opportunity  to  provide 
written comments on the other Party’s reply within five working days of the date of 
receipt. 

EN 

CONFIDENTIALITY 

21 

   EN 

 
35. 

36. 

37. 

38. 

39. 

40. 

41. 

42. 

The Parties shall maintain the confidentiality of the arbitration panel hearings where 
the hearings are held in closed session, in accordance with rule 28. Each Party shall 
treat as confidential any information submitted by the other Party to the arbitration 
panel  which  that  Party  has  designated  as  confidential.  Where  a  Party  submits  a 
confidential version of its written submissions to the arbitration panel, it shall also, 
upon  request  of  the  other  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. 

EX PARTE CONTACTS 

The  arbitration  panel  shall  not  meet  or  contact  a  Party  in  the  absence  of  the  other 
Party. 

No member of the arbitration panel may discuss any aspect of the subject matter of 
the proceedings with one Party or both Parties in the absence of the other arbitrators. 

AMICUS CURIAE SUBMISSIONS 

Unless the Parties agree otherwise within five days of the date of the establishment 
of  the  arbitration  panel,  the  arbitration  panel  may  receive  unsolicited  written 
submissions,  provided  that  they  are  made  within  10  days  of  the  date  of  the 
establishment  of  the  arbitration  panel,  that  they  are  concise  and  in  no  case  longer 
than 15 typed pages, including any annexes, and that they are directly relevant to the 
factual issue under consideration by the arbitration panel.  

The  submission  shall  contain  a  description  of  the  person  making  the  submission, 
whether natural or legal, including the nature of their activities and the source of its 
financing, and specify the nature of the interest that the person has in the arbitration 
proceeding. It shall be drafted in the languages chosen by the Parties in accordance 
with Rules 42 and 43 of these Rules of Procedure. 

The  arbitration  panel  shall  list  in  its  ruling  all  the  submissions  it  has  received  that 
conform to the above rules. The arbitration panel shall not be obliged to address in its 
ruling  the  arguments  made  in  such  submissions.  Any  submission  obtained  by  the 
arbitration panel under this rule shall be submitted to the Parties for their comments. 

URGENT CASES 

In cases of urgency referred to in this Protocol, the arbitration panel, after consulting 
the  Parties,  shall  adjust  the  time  limits  referred  to  in  these  rules  as  appropriate  and 
shall notify the Parties of such adjustments. 

TRANSLATION AND INTERPRETATION 

During the consultations referred to in Article 6.2 of this Protocol, and no later than 
the  meeting  referred  to  in  Rule  9(b)  of  these  Rules  of  Procedure,  the  Parties  shall 
endeavour  to  agree  on  a  common  working  language  for  the  proceedings  before  the 
arbitration panel.  

EN 

22 

   EN 

 
43. 

44. 

45. 

46. 

47. 

48. 

49. 

If the Parties are unable to agree on a common working language, each Party shall 
arrange  for  and  bear  the  costs  of  the  translation  of  its  written  submissions  into  the 
language chosen by the other Party 

The Party complained against shall arrange for the interpretation of oral submissions 
into the languages chosen by the Parties. 

Arbitration panel rulings shall be notified in the language or languages chosen by the 
Parties. 

Any Party may provide comments on any translated version of a document drawn up 
in accordance with these rules. 

CALCULATION OF TIME-LIMITS 

Where,  by  reason  of  the  application  of  rule  7  of  these  Rules  of  Procedure,  a  Party 
receives a document on a date other than the date on which this document is received 
by  the  other  Party,  any  period  of  time  that  is  calculated  on  the  basis  of  the  date  of 
receipt  of  that  document  shall  be  calculated  from  the  last  date  of  receipt  of  that 
document. 

OTHER PROCEDURES 

These Rules of Procedure are also applicable to procedures established under Article 
10(2), 11(2), 12(3) and 13(2) of this Protocol. However, the time-limits laid down in 
these  Rules  of  Procedure  shall  be  adjusted  in  line  with  the  special  time-limits 
provided  for  the  adoption  of  a  ruling  by  the  arbitration  panel  in  those  other 
procedures. 

In the event of the original panel, or some of its members, being unable to reconvene 
for  the  procedures  established  under  Article  10(2),  11(2),  12(3)  and  13(2)  of  the 
Protocol,  the  procedures  set  out  in  Article  6  of  this  Protocol  shall  apply.  The  time 
limit for the notification of the ruling shall be extended of 15 days.  

EN 

23 

   EN 

 
CODE OF CONDUCT FOR MEMBERS OF ARBITRATION PANELS AND MEDIATORS 

ANNEX II 

1. 

In this Code of Conduct: 

Definitions 

(a)  "member"  or  “arbitrator”  means  a  member  of  an  arbitration  panel  effectively 
established under Article 6 of this Protocol; 

(b) "mediator" means a person who conducts a mediation in accordance with Article 
4 of this Protocol; 

(c) "candidate" means an individual whose name is on the list of arbitrators referred 
to  in  Article  19  of  this  Protocol  and  who  is  under  consideration  for  selection  as  a 
member of an arbitration panel under Article 6 of this Protocol; 

(d)  "assistant"  means  a  person  who,  under  the  terms  of  appointment  of  a  member, 
conducts, researches or provides assistance to the member; 

(e) "proceeding", unless otherwise specified, means an arbitration panel proceeding 
under this Protocol; 

(f) "staff", in respect of a member, means persons under the direction and control of 
the member, other than assistants.  

Responsibilities to the process 

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 high standards of conduct so that the integrity 
and impartiality of the dispute settlement mechanism is preserved. Former members 
must comply with the obligations established in paragraphs 15, 16, 17 and 18 of this 
Code of Conduct. 

Disclosure obligations 

Prior  to  confirmation  of  her  or  his  selection  as  a  member  of  the  arbitration  panel 
under this Protocol, a candidate shall disclose any interest, relationship or matter that 
is  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.  

A  candidate  or  member  shall  only  communicate  matters  concerning  actual  or 
potential  violations  of  this  Code  of  Conduct  to  the  subcommittee  "industry,  trade, 
services and investment promotion" for consideration by the Parties.  

Once  selected,  a  member  shall  continue  to  make  all  reasonable  efforts  to  become 
aware of any interests, relationships or matters referred to in paragraph 3 of this Code 
of  Conduct  and  shall  disclose  them.  The  disclosure  obligation  is  a  continuing  duty 

2. 

3. 

4. 

5. 

EN 

24 

   EN 

 
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  matters  by  informing  the  subcommittee  "industry,  trade, 
services and investment promotion", in writing, for consideration by the Parties.  

Duties of members 

6. 

7. 

8. 

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

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

A member shall take all appropriate steps to ensure that his or her assistant and staff 
are aware of, and comply with, paragraphs 2, 3, 4, 5, 16, 17 and 18 of this Code of 
Conduct.  

9. 

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

10. 

11. 

12. 

13. 

14. 

15. 

16. 

Independence and impartiality of members 

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

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 her or his duties.  

A  member  may  not  use  her  or  his  position  on  the  arbitration  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 her or him.  

A  member  may  not  allow  financial,  business,  professional,  family  or  social 
relationships or responsibilities to influence her or his conduct or judgement.  

A  member  must  avoid  entering  into  any  relationship  or  acquiring  any  financial 
interest that is likely to affect her or his impartiality or that might reasonably create 
an appearance of impropriety or bias. 

Obligations of former members 

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 arbitration panel. 

Confidentiality 

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 

EN 

25 

   EN 

 
information to gain personal advantage or advantage for others or to adversely affect 
the interest of others.  

17. 

18. 

A  member  shall  not  disclose  an  arbitration  panel ruling or parts thereof  prior to its 
publication in accordance with this Protocol.  

A  member  or  former  member  shall  not  at any time disclose the  deliberations  of  an 
arbitration panel, or any member's view. 

Expenses 

19. 

Each member shall keep a record and render a final account of the time devoted to 
the procedure and of her or his expenses. 

20. 

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

Mediators 

* 

* 

* 

EN 

26 

   EN