Proposal for a COUNCIL DECISION concluding a Protocol between the European Union and the Arab Republic of Egypt 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 Arab Republic of Egypt of the other part
Date: 2010-08-09
Institutions: European Commission
Subjects: Egypt, association agreement (EU), protocol to an agreement, ratification of an agreement, settlement of disputes, trade agreement (EU)

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EUROPEAN COMMISSION 

Brussels, 9.8.2010 
COM(2010) 424 final 

2010/0229 (NLE) 

Proposal for a 

COUNCIL DECISION 

concluding a Protocol between the European Union and the Arab Republic of Egypt 
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 Arab 
Republic of Egypt of the other part 

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1. 

2. 

3. 

4. 

5. 

6. 

EXPLANATORY MEMORANDUM 

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

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  World  Trade  Organization  (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-Egypt  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  on  the  Functioning  of  the 
European Union and within the framework of the negotiating directives issued by the 
Council. 

Negotiations with Egypt progressed well and resulted in a draft Agreement that was 
initialled  at  the  EU-Egypt  Association  Council  held  in  Luxembourg  on  27  April 
2010. 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-Egypt Association Agreement, with the usual exception of 
the  Articles  on  trade  defence.  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 having 
to  establish  a  panel,  via  consultations  and  mediation.  Finally,  the  text  incorporates 
rules  on  openness  and  transparency  (open  hearings,  "amicus  curiae"  unsolicited 
submissions, publication of the panel report), as well as an article on the connection 
with the WTO Dispute Settlement Understanding.  

In parallel, a separate proposal on the signature of this Agreement is also submitted. 
Following the conclusion of this Agreement by the European Union and the Egyptian 
the  Association  Agreement.
authorities, 

this  Protocol  will  be  annexed 

to 

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2010/0229 (NLE) 

Proposal for a 

COUNCIL DECISION 

concluding a Protocol between the European Union and the Arab Republic of Egypt 
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 Arab 
Republic of Egypt 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  on  the  Functioning  of  the 
European Union and within the framework of the negotiating directives issued by the 
Council.  

These negotiations have been concluded and a Protocol between the European Union 
and  the  Arab  Republic  of  Egypt  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  Arab  Republic  of  Egypt  of  the  other  part 
(hereinafter referred to as the Agreement) was initialled on 27 April 2010. 

(4) 

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

(5) 

The Agreement should be concluded, 

1 

OJ C […], […], p. […]. 

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HAS ADOPTED THIS DECISION:  

Article 1 

The Agreement between the European Union and the Arab Republic of Egypt 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 Arab Republic of Egypt of the other part, is 
hereby concluded. .  

The text of the Agreement to be concluded is annexed to this Decision.  

Article 2 

The President of the Council shall designate the person empowered to proceed, on behalf of 
the European Union, to the notification provided for in Article 23 of the Agreement, in order 
to express the consent of the European Union to be bound by the Agreement. 

Article 3 

This  Decision  shall  enter  into  force  on  the  day  of  its  adoption.  It  shall  be  published  in  the 
Official Journal of the European Union. 

The date of entry into force of the Agreement shall be published in the Official Journal of the 
European Union. 

Done at Brussels, 

For the Council 
The President 

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ANNEX  

PROTOCOL  BETWEEN  THE  EUROPEAN  UNION  AND  THE  ARAB  REPUBLIC  OF 
EGYPT  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 
ARAB REPUBLIC OF EGYPT, OF THE OTHER PART 

THE EUROPEAN UNION, hereinafter referred to as "the Union", of the one part, and 

THE ARAB REPUBLIC OF EGYPT, hereinafter referred to as "Egypt", of the other part, 

HAVE DECIDED 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  Title  II  (with  the  exception  of  Articles  22,  23  and 
24), of the Euro-Mediterranean Agreement establishing an Association between the 
European Community and its Member States, of the one part, and the Arab Republic 
of Egypt, of the other part (hereinafter referred to as “the Association Agreement”)2, 
except  as  otherwise  expressly  provided.  Article  82  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  82  of  the  Association 
Agreement, the Association Council has failed to settle the dispute.  

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  82.2  of  the 
Association Agreement, or when it has declared that there is no longer a 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.  

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2. 

3. 

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CHAPTER II  

CONSULTATIONS AND MEDIATION  

Article 3 

Consultations  

1. 

2. 

3. 

4. 

5. 

1. 

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”,  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 15 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 

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 Party complained against and to the subcommittee “industry, 
trade, services and investment” 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. 

2. 

Unless  the  Parties  agree  on  a  mediator  within  15  days  of  the  date  of  receipt  of  the 
request for mediation, the chairpersons of the subcommittee “industry, trade, services 

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and investment”, 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 days of the date of receipt of 
the request. The mediator will convene a meeting with the Parties no sooner than 20 
days  and  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 paragraphs 18 to 21 of the Rules of Procedure.  

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”. 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, 

3. 

4. 

5. 

6. 

7. 

1. 

2. 

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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  

1. 

2. 

3. 

4. 

5. 

6. 

An arbitration panel shall be composed of three arbitrators. 

Within 15 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.  

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,  trade,  services  and  investment”,  or  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.  

The chairpersons of the subcommittee “industry, trade, services and investment”, or 
the  chairpersons'  delegate,  shall  select  the  arbitrators  within  10  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. 

Replacement of arbitrators shall take place only for the reasons and according to the 
procedures detailed in paragraphs 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,  as  a  general  rule,  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. 

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Article 8 

Arbitration panel ruling 

1. 

2. 

3. 

The arbitration panel shall, as a general rule, notify its ruling to the Parties and to the 
subcommittee  “industry,  trade,  services  and  investment”  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”  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 establishment of the arbitration panel. 

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.  

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. 

SECTION II – COMPLIANCE 

Article 9 

Compliance with the arbitration panel and Appellate Panel rulings 

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”  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 

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reasonable period of time. Such request shall be notified simultaneously to the other 
party  and  to  the  subcommittee  “industry,  trade,  services  and  investment”.  The 
arbitration  panel  shall  notify  its  ruling  to  the  Parties  and  to  the  subcommittee 
“industry, trade, services and investment” within 30 days from the date of receipt of 
the request.  

3. 

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

1. 

2. 

1. 

2. 

3. 

Article 11 

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” 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 
receipt of the request.  

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.  

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”,  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.  The  complaining  Party  may 
implement the suspension 15 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” 

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4. 

1. 

2. 

before  the  expiry  of  the  15  day  period  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  receipt  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” 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. 

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”.  The  arbitration 
panel ruling shall be notified to the Parties and to the subcommittee “industry, trade, 
services and investment” within 45 days of the date of receipt 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”  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. 

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

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2. 

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  the  request  of  a  Party,  or  upon  its  own  initiative,  the  arbitration  panel  may  obtain 
information  it  deems  appropriate  for  the  arbitration  panel  proceeding.  In  particular,  the 
arbitration  panel  also  has  the  right  to  seek  the  relevant  opinion  of  experts  as  it  deems 
appropriate. 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.  Unless  the  Parties  agree  otherwise,  interested  natural  or  legal  persons 
established in the Parties are authorised to submit communications in writing to the arbitration 
panels in accordance with the Rules of Procedure. Such communications shall be limited to 
the factual aspects of the dispute and shall not address points of law. 

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. 

Article 18 

Arbitration panel decisions and ruling 

1. 

2. 

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 shall dissenting opinions of 
arbitrators 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”  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.  

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CHAPTER IV 

GENERAL PROVISIONS 

Article 19 

Lists of arbitrators  

1. 

2. 

3. 

4. 

1. 

2. 

3. 

The subcommittee “industry, trade, services and investment” 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 who are not nationals of either Party and who shall act 
as  chairperson  to  the  arbitration  panel.  The  subcommittee  “industry,  trade,  services 
and investment” 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. 

The  subcommittee  “industry,  trade,  services  and  investment”  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” may use a sectoral list upon agreement of 
both Parties. 

Should  the  list  provided  for  in  paragraph  1  of  this  Article  not  be  established  at  the 
time a request for mediation or for the establishment of an arbitration panel is made, 
the  arbitrators  shall  be  drawn  by  lot  from  the  individuals  who  have  been  formally 
proposed by one or both of the Parties. The individuals proposed for chairperson of 
the arbitration panel or mediator may not be nationals of either Party.  

Article 20 

Relation with WTO obligations 

When  a  Party  seeks  the  settlement  of  a  dispute  concerning  an  obligation  under  the 
WTO Agreement, it shall have recourse to the relevant rules and procedures of the 
WTO Agreement, which apply notwithstanding the provisions of this Agreement. 

When  a  Party  seeks  the  settlement  of  a  dispute  concerning  an  obligation  falling 
within the scope of this Agreement as defined in Article 2, it shall have recourse to 
the rules and procedures of this Agreement. 

Unless  the  Parties  agree  otherwise,  when  a  Party  seeks  the  settlement  of  a  dispute 
concerning  an  obligation  falling  within  the  scope  of  this  Agreement  as  defined  in 

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Article 2, which is equivalent in substance to an obligation under the WTO, it shall 
have  recourse  to  the  relevant  rules  and  procedures  of  the  WTO  Agreement,  which 
apply notwithstanding the provisions of this Agreement. 

Once  dispute  settlement  procedures  have  been  initiated,  the  forum  selected  in 
accordance with the paragraphs above, if it has not declined its jurisdiction, shall be 
used to the exclusion of the other.  

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

Article 21 

Time limits 

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. 

Any time limit referred to in this Protocol may be extended 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  extend  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 

No later than three years after the entry into force of this Protocol and its Annexes, 
the  Association  Council  shall  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.  

4. 

5. 

1. 

2. 

1. 

2. 

3. 

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.  

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14 

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Done at …, in duplicate, 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 Arab Republic of Egypt  
[…] 

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ANNEX I: RULES OF PROCEDURE FOR ARBITRATION 

ANNEXES 

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

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16 

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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. 

The  European  Union  shall  bear  the  expenses  derived  from  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 Ministry of Trade and Industry of the Arab 
Republic  of  Egypt  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. 

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17 

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7. 

8. 

9. 

If the last day for delivery of a document falls on an official holiday or rest day of 
Egypt 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 
trade,  services  and 
notifications  addressed 
investment” in accordance with this Agreement shall be copied to the other relevant 
sub-committees established under the Association Agreement. 

the  subcommittee  “industry, 

to 

COMMENCING THE ARBITRATION 

(a) If pursuant to Article 6 of the Protocol or to rules 19, 20 or 49 of these Rules of 
Procedure  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 10 
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 10 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 5 days of their agreement. 

INITIAL SUBMISSIONS 

11. 

12. 

The  complaining  Party  shall  deliver  its  initial  written  submission  no  later  than  25 
days  after  the  date  of  establishment  of  the  arbitration  panel.  The  Party  complained 
against  shall  deliver  its  written  counter-submission  no  later  than  25  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 

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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. 

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 the 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  the  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 the 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 10 days of the date 
of receipt of the request to the chairperson of the arbitration panel.  

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 

EN 

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they  so  agree,  replace  the  chairperson  and  select  a  replacement  following  the 
procedure set out in Article 6 paragraph 3 of the 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  the 
Protocol.  Her  or  his  name  shall  be  drawn  by  lot  by  the  chairpersons  of  the 
subcommittee  “industry,  trade,  services  and  investment”,  or  the  chairpersons' 
delegate. The decision by this person on the need to replace the chairperson shall be 
final.  

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 
the  Protocol  who  may  act  as  chairpersons.  This  selection  of  the  new  chairperson 
shall  be  within  10  days  of  the  date  of  receipt  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 paragraphs 18, 19 and 20. 

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  the  Arab  Republic  of  Egypt  and  in  Cairo  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; 

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

(d) arbitrators’ assistants. 

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

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27. 

28. 

No  later  than  10  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. 

35. 

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 15 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 10 days of the date of receipt. 

CONFIDENTIALITY 

The Parties shall maintain the confidentiality of the arbitration panel hearings where 
the hearings are held in closed session, in accordance with paragraph 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 

EN 

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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. 

UNSOLICITED 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  Agreement,  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 the 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.  

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. 

36. 

37. 

38. 

39. 

40. 

41. 

42. 

43. 

44. 

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45. 

46. 

47. 

48. 

49. 

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  paragraph  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  the  Protocol  shall  apply.  The  time 
limit for the notification of the ruling shall be extended of 15 days.  

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ANNEX II 

CODE OF CONDUCT FOR MEMBERS OF ARBITRATION PANELS AND 
MEDIATORS 

1. 

In this Code of Conduct: 

Definitions 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

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

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

"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; 

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

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

"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” 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 

2. 

3. 

4. 

5. 

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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  matters  by  informing  the  subcommittee  “industry,  trade, 
services and investment”, 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. 

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 

16. 

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 

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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.  

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 

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