Common use of Compensation and Suspension of Concessions Clause in Contracts

Compensation and Suspension of Concessions. 1. Compensation and the suspension of concessions or other obligations are temporary measures available in the event that the recommendations and rulings are not implemented within a reasonable period of time. However, neither compensation nor the suspension of concessions or other obligations is preferred to full implementation of a recommendation to bring a measure into conformity with the Agreement. Compensation is voluntary and, if granted, shall be consistent with a Party's obligations under this Agreement. 2. If (a) the Party complained against does not provide notice pursuant to paragraph 2 of Article XTII.16 that it intends to implement the recommendations or rulings of the panel; (b) the Party complained against does not submit within the required time period a notification pursuant to paragraph 4(c) of Article XIII.16 stating that the Party complained against has complied; or (c) the compliance panel report pursuant Article XIII.17 finds that the Party complained against has failed to bring the measures found to be inconsistent with this Agreement into compliance therewith or otherwise comply with the recommendations or rulings of the panel; then a complaining Party may suspend the application to the Party complained against of concessions or other obligations under this Agreement. The Parties are encouraged to consult before concessions or other obligations are suspended to discuss a mutually satisfactory solution. 3. The complaining Party shall not implement any suspension of concessions or other obligations until 10 days after it has notified the Party complained against which particular concessions or obligations the Party intends to suspend. 4. The level of the suspension of concessions or other obligations shall be equivalent to the level of nullification or impairment. (a) When the complaining Party has provided notice that it intends to suspend concessions or other obligations pursuant to paragraph 8 of Article XIII.17 or paragraph 3 of this Article and the Party complained against objects to the level of suspension proposed within 10 days after the receipt of such notice, the matter shall be referred to arbitration. (b) Such arbitration shall be carried out by the original panel if its members are available, In such case, the Panel will be deemed to be established by consent of both Parties on the date the Party complained against files the document with the objections referred to in subparagraph (a) above. If any member of the original panel is not available, a new member shall be appointed in accordance with the procedure established under Article XIII.11 and the date the new Panel is complete shall be deemed to be the date the matter was referred, (c) the arbitration shall be completed and the decision of the arbitral panel shall be provided to the Parties within 45 days after the referral of the matter. The complaining Party shall not suspend concessions or other obligations during the course of the arbitration. 6. The arbitral panel acting pursuant to paragraph 5 shall not examine the nature of the concessions or other obligations to be suspended, but shall determine whether the level of such suspension is equivalent to the level of nullification or impairment, The Parties shall accept the arbitral panel's decision as final and shall not seek a second arbitration. The decision shall constitute authorization to suspend concessions or other obligations consistent with the decision of the arbitral panel. 7. The suspension of concessions or other obligations shall be temporary and shall only be applied until such time as the measure found to be inconsistent with the Agreement has been removed, or the Party that must implement recommendations or rulings provides a solution to the nullification or impairment of benefits, or a mutually satisfactory solution is reached. The Commission shall, unless the Parties otherwise agree, include on its agenda the implementation of adopted recommendations or rulings, including those cases where compensation has been provided or concessions or other obligations have been suspended, but the recommendations to bring a measure into conformity with the Agreement have not been implemented. (a) After a Party has suspended concessions or other obligations pursuant with this Agreement, the Party complained against may request a termination of such suspension on the grounds that it has eliminated the inconsistency or the nullification or impairment of benefits under this Agreement identified in the recommendations or rulings of the panel. The Party complained against shall include with any such request a written notice describing in detail the measures it has taken, providing the text of the relevant measures. If the Parties agree that the Party complained against has eliminated the inconsistency or the nullification or impairment of benefits, the authorization to suspend concessions or other obligations shall terminate. (b) Where there is disagreement between the Parties as to the existence or consistency with the Agreement of measures taken to comply with the recommendations or rulings of the panel in the dispute, such disagreement shall be resolved through recourse to the dispute settlement procedures provided for in Article XIII.

Compensation and Suspension of Concessions. 1. Compensation and The Party complained against shall, on request of the suspension of concessions or other obligations are temporary measures available in the event that the recommendations and rulings are not implemented within a reasonable period of time. Howevercomplaining Party, neither compensation nor the suspension of concessions or other obligations is preferred to full implementation of a recommendation to bring a measure enter into conformity consultations with the Agreement. Compensation is voluntary and, if granted, shall be consistent complaining Party with a Party's obligations under this Agreement. 2. Ifview to developing mutually acceptable compensation, where: (a) the Party complained against does not provide notice pursuant has notified the complaining Party that it considers it impracticable to comply with paragraph 2 1 of Article XTII.16 that it intends to implement 19.13 within the recommendations or rulings reasonable period of the paneltime determined in accordance with Article 19.13; (b) the Party complained against does not submit has notified the complaining Party of its failure to comply with paragraph 1 of Article 19.13 within the required reasonable period of time period a notification pursuant to paragraph 4(c) of determined in accordance with Article XIII.16 stating that the Party complained against has complied19.13; or (c) the compliance panel report pursuant Article XIII.17 finds that failure of the Party complained against has failed to bring the measures found to be inconsistent with this Agreement into compliance therewith or otherwise comply with paragraph 1 of Article 19.13 has been established by the recommendations or rulings reconvened arbitral tribunal in accordance with Article 19.14. 2. If mutually acceptable compensation has not been agreed within 20 days after the date of receipt of the panel; then a request made in accordance with paragraph 1, the complaining Party may notify the Party complained against in writing that it intends to suspend the application to the Party complained against of concessions or other obligations under this Agreement. The Parties are encouraged , and shall have the right to consult before concessions or other obligations are suspended to discuss a mutually satisfactory solution. 3. The complaining Party shall not implement any begin the suspension of concessions or other obligations until 10 30 days after it has notified the Party complained against which particular concessions or obligations date of the Party intends to suspend. 4notification. The level of the such suspension of concessions or other obligations shall be be: (a) equivalent to the level of nullification or impairmentimpairment of any benefit that is attributable to the failure of the Party complained against to comply with paragraph 1 of Article 19.13; and (b) restricted to the same sector or sectors to which the nullification or impairment of benefit relates, unless it is not practicable or effective to suspend the application of concessions or other obligations in such sector or sectors. (a) When 3. Notwithstanding paragraph 2, the complaining Party has provided notice that it intends shall not exercise the right to suspend concessions or other obligations pursuant to under paragraph 8 2 where: (a) a review of the proposed level of suspension of concessions or other obligations is being undertaken in accordance with paragraph 4 or 5; (b) the Party complained against has notified the complaining Party that it complied with paragraph 1 of Article XIII.17 19.13 after any of the circumstances referred to in paragraph 1, and the complaining Party has expressed its agreement that the Party complained against has complied with paragraph 1 of Article 19.13; or (c) a mutually agreed solution has been reached. 4. The complaining Party shall specify, in the notification made in accordance with paragraph 2, the level of suspension of concessions or paragraph 3 of this Article and other obligations that it proposes. If the Party complained against objects to the level of suspension proposed proposed, it may request consultations with the complaining Party within 30 days after the date of receipt of the notification. The complaining Party shall enter into consultations within 10 days after the date of receipt of such notice, the request. If the Parties fail to resolve the matter shall be referred to arbitration. (b) Such arbitration shall be carried out by the original panel if its members are available, In such case, the Panel will be deemed to be established by consent of both Parties on within 30 days after the date of receipt of the request for consultations pursuant to this paragraph, the Party complained against files may request in writing to the document with complaining Party the objections referred to in subparagraph (a) above. If any member reconvening of the original panel arbitral tribunal to examine the matter. 5. When a request for the reconvening of the arbitral tribunal is not available, a new member shall be appointed made by the Party complained against in accordance with paragraph 4, the procedure established under Article XIII.11 and arbitral tribunal shall be reconvened within 15 days after the date the new Panel is complete shall be deemed to be the date the matter was referred, (c) the arbitration shall be completed and the decision of receipt of the arbitral panel request and shall be provided to the Parties issue, within 45 days after the referral date on which it is reconvened, its award containing a determination on the appropriate level of suspension to be applied by the matter. The complaining Party shall not suspend concessions or other obligations during the course of the arbitrationParty. 6. The arbitral panel acting pursuant to paragraph 5 shall not examine the nature of the concessions or other obligations to be suspended, but shall determine whether the level of such suspension is equivalent to the level of nullification or impairment, The Parties shall accept the arbitral panel's decision as final and shall not seek a second arbitration. The decision shall constitute authorization to suspend concessions or other obligations consistent with the decision of the arbitral panel. 7. The suspension of concessions or other obligations under paragraph 2 shall be temporary and shall only be applied until such time as it is agreed between the measure found to be inconsistent Parties in the manner specified in subparagraph 3(b) or established by the reconvened arbitral tribunal in accordance with the Agreement has been removedparagraph 9, or that the Party that must implement recommendations or rulings provides a solution to the nullification or impairment complained against has complied with paragraph 1 of benefitsArticle 19.13, or a mutually satisfactory agreed solution is reached. 7. The Commission shall, unless In a situation where the Parties otherwise agree, include on its agenda the implementation of adopted recommendations or rulings, including those cases where compensation has been provided or right to suspend concessions or other obligations have has been suspended, but exercised by the recommendations to bring a measure into conformity complaining Party in accordance with the Agreement have not been implemented.this Article: (a) After a if the Party has suspended complained against considers that the level of concessions or other obligations suspended by the complaining Party is manifestly excessive, it may request in writing to the complaining Party the reconvening of the arbitral tribunal to examine the matter; and (b) if the Party complained against considers that it has complied with paragraph 1 of Article 19.13, it may request consultations with the complaining Party. The complaining Party shall enter into consultations within 10 days after the date of receipt of the request. If the Parties fail to resolve the matter within 30 days after the date of receipt of the request for consultations pursuant with to this Agreementsubparagraph, the Party complained against may request a termination of such suspension on in writing to the grounds that it has eliminated complaining Party the inconsistency or the nullification or impairment of benefits under this Agreement identified in the recommendations or rulings reconvening of the panelarbitral tribunal to examine the matter. 8. The Party complained against shall include with any such When a request a written notice describing in detail for the measures it has taken, providing the text reconvening of the relevant measures. If the Parties agree that arbitral tribunal is made by the Party complained against has eliminated the inconsistency or the nullification or impairment of benefitsin accordance with subparagraph 7(a), the authorization arbitral tribunal shall be reconvened within 15 days after the date of receipt of the request and shall issue, within 45 days after the date on which it is reconvened, its award containing a determination on the appropriate level of suspension to suspend concessions or other obligations shall terminatebe applied by the complaining Party. (b) Where there is disagreement between 9. When a request for the Parties as to the existence or consistency with the Agreement of measures taken to comply with the recommendations or rulings reconvening of the panel arbitral tribunal is made by the Party complained against in accordance with subparagraph 7(b), the dispute, such disagreement arbitral tribunal shall be resolved reconvened and shall issue its award, applying, mutatis mutandis, paragraphs 3 through recourse to the dispute settlement procedures provided for in 8 of Article XIII19.

Compensation and Suspension of Concessions. 1. Compensation and The Party complained against shall, on request of the suspension of concessions or other obligations are temporary measures available in the event that the recommendations and rulings are not implemented within a reasonable period of time. Howevercomplaining Party, neither compensation nor the suspension of concessions or other obligations is preferred to full implementation of a recommendation to bring a measure enter into conformity consultations with the Agreement. Compensation is voluntary and, if granted, shall be consistent complaining Party with a Party's obligations under this Agreement. 2. Ifview to developing mutually acceptable compensation, where: (a) the Party complained against does not provide notice pursuant has notified the complaining Party that it considers it impracticable to comply with paragraph 2 1 of Article XTII.16 that it intends to implement 19.13 within the recommendations or rulings reasonable period of the paneltime determined in accordance with Article 19.13; (b) the Party complained against does not submit has notified the complaining Party of its failure to comply with paragraph 1 of Article 19.13 within the required reasonable period of time period a notification pursuant to paragraph 4(c) of determined in accordance with Article XIII.16 stating that the Party complained against has complied19.13; or (c) the compliance panel report pursuant Article XIII.17 finds that failure of the Party complained against has failed to bring the measures found to be inconsistent with this Agreement into compliance therewith or otherwise comply with paragraph 1 of Article 19.13 has been established by the recommendations or rulings reconvened arbitral tribunal in accordance with Article 19.14. 2. If mutually acceptable compensation has not been agreed within 20 days after the date of receipt of the panel; then a request made in accordance with paragraph 1, the complaining Party may notify the Party complained against in writing that it intends to suspend the application to the Party complained against of concessions or other obligations under this Agreement. The Parties are encouraged , and shall have the right to consult before concessions or other obligations are suspended to discuss a mutually satisfactory solution. 3. The complaining Party shall not implement any begin the suspension of concessions or other obligations until 10 30 days after it has notified the Party complained against which particular concessions or obligations date of the Party intends to suspend. 4notification. The level of the such suspension of concessions or other obligations shall be be: (a) equivalent to the level of nullification or impairmentimpairment of any benefit that is attributable to the failure of the Party complained against to comply with paragraph 1 of Article 19.13; and (b) restricted to the same sector or sectors to which the nullification or impairment of benefit relates, unless it is not practicable or effective to suspend the application of concessions or other obligations in such sector or sectors. (a) When 3. Notwithstanding paragraph 2, the complaining Party has provided notice that it intends shall not exercise the right to suspend concessions or other obligations pursuant to under paragraph 8 2 where: (a) a review of the proposed level of suspension of concessions or other obligations is being undertaken in accordance with paragraph 4 or 5; (b) the Party complained against has notified the complaining Party that it complied with paragraph 1 of Article XIII.17 19.13 after any of the circumstances referred to in paragraph 1, and the complaining Party has expressed its agreement that the Party complained against has complied with paragraph 1 of Article 19.13; or (c) a mutually agreed solution has been reached. 4. The complaining Party shall specify, in the notification made in accordance with paragraph 2, the level of suspension of concessions or paragraph 3 of this Article and other obligations that it proposes. If the Party complained against objects to the level of suspension proposed proposed, it may request consultations with the complaining Party within 30 days after the date of receipt of the notification. The complaining Party shall enter into consultations within 10 days after the date of receipt of such notice, the request. If the Parties fail to resolve the matter shall be referred to arbitration. (b) Such arbitration shall be carried out by the original panel if its members are available, In such case, the Panel will be deemed to be established by consent of both Parties on within 30 days after the date of receipt of the request for consultations pursuant to this paragraph, the Party complained against files may request in writing to the document with complaining Party the objections referred to in subparagraph (a) above. If any member reconvening of the original panel arbitral tribunal to examine the matter. 5. When a request for the reconvening of the arbitral tribunal is not available, a new member shall be appointed made by the Party complained against in accordance with paragraph 4, the procedure established under Article XIII.11 and arbitral tribunal shall be reconvened within 15 days after the date the new Panel is complete shall be deemed to be the date the matter was referred, (c) the arbitration shall be completed and the decision of receipt of the arbitral panel request and shall be provided to the Parties issue, within 45 days after the referral date on which it is reconvened, its award containing a determination on the appropriate level of suspension to be applied by the matter. The complaining Party shall not suspend concessions or other obligations during the course of the arbitrationParty. 6. The arbitral panel acting pursuant to paragraph 5 shall not examine the nature of the concessions or other obligations to be suspended, but shall determine whether the level of such suspension is equivalent to the level of nullification or impairment, The Parties shall accept the arbitral panel's decision as final and shall not seek a second arbitration. The decision shall constitute authorization to suspend concessions or other obligations consistent with the decision of the arbitral panel. 7. The suspension of concessions or other obligations under paragraph 2 shall be temporary and shall only be applied until such time as it is agreed between the measure found to be inconsistent Parties in the manner specified in subparagraph 3(b) or established by the reconvened arbitral tribunal in accordance with the Agreement has been removedparagraph 9, or that the Party that must implement recommendations or rulings provides a solution to the nullification or impairment complained against has complied with paragraph 1 of benefitsArticle 19.13, or a mutually satisfactory agreed solution is reached. 7. The Commission shall, unless In a situation where the Parties otherwise agree, include on its agenda the implementation of adopted recommendations or rulings, including those cases where compensation has been provided or right to suspend concessions or other obligations have has been suspended, but exercised by the recommendations to bring a measure into conformity complaining Party in accordance with the Agreement have not been implemented.this Article: (a) After a if the Party has suspended complained against considers that the level of concessions or other obligations suspended by the complaining Party is manifestly excessive, it may request in writing to the complaining Party the reconvening of the arbitral tribunal to examine the matter; and (b) if the Party complained against considers that it has complied with paragraph 1 of Article 19.13, it may request consultations with the complaining Party. The complaining Party shall enter into consultations within 10 days after the date of receipt of the request. If the Parties fail to resolve the matter within 30 days after the date of receipt of the request for consultations pursuant with to this Agreementsubparagraph, the Party complained against may request a termination of such suspension on in writing to the grounds that it has eliminated complaining Party the inconsistency or the nullification or impairment of benefits under this Agreement identified in the recommendations or rulings reconvening of the panelarbitral tribunal to examine the matter. 8. The When a request for the reconvening of the arbitral tribunal is made by the Party complained against in accordance with subparagraph 7(a), the arbitral tribunal shall include with any such request a written notice describing in detail be reconvened within 15 days after the measures it has taken, providing the text date of receipt of the relevant measuresrequest and shall issue, within 45 days after the date on which it is reconvened, its award containing a determination on the appropriate level of suspension to be applied by the complaining Party. 9. If When a request for the Parties agree reconvening of the arbitral tribunal is made by the Party complained against in accordance with subparagraph 7(b), the arbitral tribunal shall be reconvened and shall issue its award, applying, mutatis mutandis, paragraphs 3 through 8 of Article 19.14. In the event of a finding that the Party complained against has eliminated the inconsistency or the nullification or impairment not complied with paragraph 1 of benefitsArticle 19.13, the authorization to suspend reconvened arbitral tribunal may also, on request of either Party, examine whether the level of the existing suspension of concessions or other obligations shall terminateis still appropriate and, if not, provide a determination on the appropriate level of suspension. 10. With respect to the terms of reference, functions and proceedings of the arbitral tribunal reconvened in accordance with this Article, Article 19.7, Article 19.8 other than subparagraph (b) Where there is disagreement between the Parties as to the existence or consistency with the Agreement of measures taken to comply with the recommendations or rulings of the panel in the dispute), such disagreement Article 19.9 other than paragraph 6, Article 19.10, Article 19.11 other than paragraph 3, and Article 19.12 other than paragraphs 2, 3 and 6, shall be resolved through recourse to the dispute settlement procedures provided for in Article XIIIapply mutatis mutandis.

Compensation and Suspension of Concessions. 1. Compensation and the suspension of concessions or other obligations are temporary measures available in the event that the recommendations and rulings are not implemented within a reasonable period of time. However, neither compensation nor the suspension of concessions or other obligations is preferred to full implementation of a recommendation to bring a measure into conformity with the Agreement. Compensation is voluntary and, if granted, shall be consistent with a Party's ’s obligations under this Agreement. 2. If: (a) the Party complained against does not provide notice pursuant to paragraph 2 of Article XTII.16 XIII.16 that it intends to implement the recommendations or rulings of the panel; (b) the Party complained against does not submit within the required time period a notification pursuant to paragraph 4(c) of Article XIII.16 stating that the Party complained against has complied; or (c) the compliance panel report pursuant Article XIII.17 finds that the Party complained against has failed to bring the measures found to be inconsistent with this Agreement into compliance therewith or otherwise comply with the recommendations or rulings of the panel; then a complaining Party may suspend the application to the Party complained against of concessions or other obligations under this Agreement. The Parties are encouraged to consult before concessions or other obligations are suspended to discuss a mutually satisfactory solution. 3. The complaining Party shall not implement any suspension of concessions or other obligations until 10 days after it has notified the Party complained against which particular concessions or obligations the Party intends to suspend. 4. The level of the suspension of concessions or other obligations shall be equivalent to the level of nullification or impairment. (a) When the complaining Party has provided notice that it intends to suspend concessions or other obligations pursuant to paragraph 8 of Article XIII.17 or paragraph 3 of this Article and the Party complained against objects to the level of suspension proposed within 10 days after the receipt of such notice, the matter shall be referred to arbitration. (b) Such arbitration shall be carried out by the original panel if its members are available, . In such case, the Panel will be deemed to be established by consent of both Parties on the date the Party complained against files the document with the objections referred to in subparagraph (a) above. If any member of the original panel is not available, a new member shall be appointed in accordance with the procedure established under Article XIII.11 and the date the new Panel is complete shall be deemed to be the date the matter was referred,. (c) the arbitration shall be completed and the decision of the arbitral panel shall be provided to the Parties within 45 days after the referral of the matter. The complaining Party shall not suspend concessions or other obligations during the course of the arbitration. 6. The arbitral panel acting pursuant to paragraph 5 shall not examine the nature of the concessions or other obligations to be suspended, but shall determine whether the level of such suspension is equivalent to the level of nullification or impairment, . The Parties shall accept the arbitral panel's panel´s decision as final and shall not seek a second arbitration. The decision shall constitute authorization to suspend concessions or other obligations consistent with the decision of the arbitral panel. 7. The suspension of concessions or other obligations shall be temporary and shall only be applied until such time as the measure found to be inconsistent with the Agreement has been removed, or the Party that must implement recommendations or rulings provides a solution to the nullification or impairment of benefits, or a mutually satisfactory solution is reached. The Commission shall, unless the Parties otherwise agree, include on its agenda the implementation of adopted recommendations or rulings, including those cases where compensation has been provided or concessions or other obligations have been suspended, but the recommendations to bring a measure into conformity with the Agreement have not been implemented. (a) After a Party has suspended concessions or other obligations pursuant with this Agreement, the Party complained against may request a termination of such suspension on the grounds that it has eliminated the inconsistency or the nullification or impairment of benefits under this Agreement identified in the recommendations or rulings of the panel. The Party complained against shall include with any such request a written notice describing in detail the measures it has taken, providing the text of the relevant measures. If the Parties agree that the Party complained against has eliminated the inconsistency or the nullification or impairment of benefits, the authorization to suspend concessions or other obligations shall terminate. (b) Where there is disagreement between the Parties as to the existence or consistency with the Agreement of measures taken to comply with the recommendations or rulings of the panel in the dispute, such disagreement shall be resolved through recourse to the dispute settlement procedures provided for in Article XIII.