Common use of NON-IMPLEMENTATION AND SUSPENSION OF BENEFITS Clause in Contracts

NON-IMPLEMENTATION AND SUSPENSION OF BENEFITS. 1. If the Party complained against: (a) fails to comply with the ruling in the report promptly or within any other time decided by the original panel or agreed by the disputing Parties; or (b) fails to comply with an agreement on compensation pursuant to paragraph 3 of Article 12.16 (Implementation of the Report and Compensation) within the time period agreed by the disputing Parties, the complaining Party may suspend benefits granted under this Agreement equivalent to those affected by the measure that the panel has found to violate this Agreement. 2. In considering which benefits to suspend pursuant to paragraph 1, the complaining Party should first seek to suspend the application of benefits in the same sector or sectors as that affected by the measure that the panel has found to be inconsistent with the obligations of this Agreement. If the complaining Party considers that it is not practicable or effective to suspend benefits in the same sector or sectors, it may suspend benefits in other sectors. 3. The suspension of benefits shall be temporary and shall only be applied by the complaining Party until the measure found to violate this Agreement has been brought into conformity with the rulings of the panel or until the disputing Parties have otherwise settled the dispute. 4. The complaining Party shall notify the Party complained against of the benefits which it intends to suspend, the grounds for such suspension and when suspension will commence, no later than 30 days before the date on which the suspension is due to take effect. Within 15 days from that notification, the Party complained against may request the original panel to rule on any disagreement regarding the notified suspension, including whether the suspension of benefits is justified and whether the benefits which the complaining Party intends to suspend are excessive. The ruling of the panel shall be given within 45 days from that request. Benefits shall not be suspended until the panel has issued its ruling. 5. In case of disagreement as to whether the Party complained against has complied with the report promptly or within any other time period decided by the original panel or agreed by the disputing Parties, either of these Parties may refer the dispute to the original panel. The report of the panel shall normally be rendered within 45 days from the request. Benefits shall not be suspended until the panel has issued its ruling.

NON-IMPLEMENTATION AND SUSPENSION OF BENEFITS. 1. If the Party complained against: (a) fails to comply with an award within the ruling in the report promptly or within any other period of time decided by the original panel or agreed by the disputing Partiesfor compliance pursuant to Article 12.15; or (b) fails to comply with an agreement on compensation pursuant to paragraph 3 of Article 12.16 12.15.7; or (Implementation of the Report c) fails to comply with a decision pursuant to Article 12.17.1(a) and Compensation) within the time period agreed by the disputing Parties, Article 12.17.2; the complaining Party may shall be entitled to suspend benefits granted under this Agreement equivalent to those affected by the measure that the panel Arbitral Tribunal has found to violate this Agreement, subject to the following paragraphs. 2. The suspension of benefits shall not be applied during the course of the proceedings initiated pursuant to Article 12.17. 1(a). 3. The complaining Party shall notify the Party complained against and the Joint Committee of the benefits which it intends to suspend, the grounds for such suspension and the date on which the suspension will take effect, no later than 45 days before such date. 4. In considering which benefits to suspend pursuant to under paragraph 1, the complaining Party should first seek to suspend the application of benefits in the same sector or sectors as that those affected by the measure or other matter that the panel Arbitral Tribunal has found to be inconsistent with the obligations of this AgreementAgreement or to have caused nullification or impairment. If In case the complaining Party considers that it is not practicable impracticable or effective ineffective to suspend benefits in the same sector or sectors, it may suspend benefits in other sectors. 35. The suspension of benefits shall be temporary and shall only be applied by the complaining Party Party, only: (a) until the measure found to violate this Agreement has been brought into conformity withdrawn or amended so as to comply with the rulings original award and with the provisions of this Agreement; or (b) until an Arbitral Tribunal decides that the panel or compliance measure is compatible with the award and with the provisions of this Agreement; or (c) until the disputing Parties have otherwise settled the dispute. In these cases the suspension of benefits shall be terminated in accordance with the procedures set forth in paragraph 6. 46. The complaining Party shall notify the Party complained against To terminate a suspension of the benefits which it intends to suspend, the grounds for such suspension and when suspension will commence, no later than 30 days before the date on which the suspension is due to take effect. Within 15 days from that notificationbenefits, the Party complained against may request shall notify the complaining Party of any measure adopted to comply with the original panel award and the provisions of this Agreement or of its compliance with the agreement on compensation. Such notification shall be accompanied by a request to rule on any terminate the suspension of benefits. (a) In the event of disagreement regarding between the Parties with respect to the existence or conformity of the notified suspensionmeasure with this Agreement and the original award or in the event of a disagreement as to the compliance with the agreement on compensation, including whether within 60 days from the date of the notification, either Party may refer the matter under Article 12.17.1 (a) to the original Arbitral Tribunal to determine consistency of such measure with this Agreement and the original award or to determine compliance with the agreement on compensation. If pursuant to Article 12.17.1(a), the Arbitral Tribunal determines that the notified measure is consistent with the Agreement and the original award or determines there has been compliance with the agreement on compensation, the suspension of benefits shall be terminated. (b) In the event there is justified and whether no disagreement between the benefits which Parties as to the complaining Party intends to suspend are excessive. The ruling conformity of the panel notified measure with this Agreement and the original award or as to the compliance with the agreement on compensation, the suspension of benefits shall be given terminated within 45 days from that request. Benefits shall not be suspended until the panel has issued its ruling. 5. In case of disagreement as to whether the Party complained against has complied with the report promptly or within any other time period decided by the original panel or agreed by the disputing Parties, either of these Parties may refer the dispute to the original panel. The report of the panel shall normally be rendered within 45 30 days from the request. Benefits date of such notification. (c) In the case that the Parties have settled a dispute, the suspension of benefits shall not be suspended until terminated on the panel has issued its rulingdate agreed to by the Parties.

NON-IMPLEMENTATION AND SUSPENSION OF BENEFITS. 1. If the Party complained against: (a) fails to comply with the ruling in the report promptly or within any other time decided by the original panel or agreed by the disputing Parties; or (b) fails to comply with an agreement on compensation pursuant to paragraph 3 of Article 12.16 (Implementation of the Report and Compensation) within the time period agreed by the disputing Parties, the complaining Party may suspend benefits granted under this Agreement equivalent to those affected by the measure that the panel has found to violate this Agreement. 2. In considering which benefits to suspend pursuant to paragraph 1, the complaining Party should first seek to suspend the application of benefits in the same sector or sectors as that affected by the measure that the panel has found to be inconsistent with the obligations of this Agreement. If the complaining Party considers that it is not practicable or effective to suspend benefits in the same sector or sectors, it may suspend benefits in other sectors. 3. The suspension of benefits shall be temporary and shall only be applied by the complaining Party until the measure found to violate this Agreement has been brought into conformity with the rulings of the panel or until the disputing Parties have otherwise settled the dispute. 4. The complaining Party shall notify the Party complained against of the benefits which it intends to suspend, the grounds for such suspension and when suspension will commence, no later than 30 days before the date on which the suspension is due to take effect. Within 15 days from that notification, the Party complained against may request the original panel to rule on any disagreement regarding the notified suspension, including whether the suspension of benefits is justified and whether the benefits which the complaining Party intends to suspend are excessive. The ruling of the panel shall be given within 45 days from that request. Benefits shall not be suspended until the panel has issued its ruling. 5. In case of disagreement as to whether the Party complained against has complied with the report promptly or within any other time period decided by the original panel or agreed by the disputing Parties, either of these Parties may refer the dispute to the original panel. The report of the panel shall normally be rendered within 45 days from the request. Benefits shall not be suspended until the panel has issued its ruling. 6. At the request of a disputing Party, the original panel shall determine the conformity with the rulings of the panel in this Chapter of any implementing measures adopted after the suspension of benefits by the complaining Party and whether the suspension of benefits should be terminated or modified. In this case the ruling of the panel shall be given within 30 days from the date of that request. 7. A panel under this Article shall whenever possible be composed of members of the original panel. If any of the panelists dies, withdraws, is removed or is otherwise unavailable, that panelist shall be replaced by a panelist appointed pursuant to paragraph 5 of Article 12.9 (Panel Selection).

NON-IMPLEMENTATION AND SUSPENSION OF BENEFITS. 1. If a Panel has made a determinations of the type described in Article 20.10.2, and the Parties are unable to reach an agreement on a resolution pursuant to Article 20.10.1, within 30 days of receiving the final report, or such other period as the Parties may agree, the Party complained againstagainst shall enter into negotiations with the complaining Party with a view to developing mutually acceptable compensation. 2. If the Parties: (a) fails are unable to comply with agree on compensation within 30 days after the ruling in the report promptly or within any other time decided by the original panel or agreed by the disputing Partiesperiod for developing such compensation has begun; or (b) fails to comply with an agreement have agreed on compensation or on a resolution pursuant to paragraph 3 of Article 12.16 (Implementation 20.10.1, and the complaining Party considers that the Party complained against has failed to observe the terms of the Report and Compensation) within the time period agreed by the disputing Partiesagreement, the complaining Party may at any time thereafter provide written notice to the Party complained against that it intends to suspend the application to the Party complained against of benefits granted of equivalent effect. The notice shall specify the level of benefits that the complaining Party proposes to suspend. The complaining Party may begin suspending benefits of equivalent effect 15 days after the later of the date on which it provides notice to the other Party under this Agreement equivalent to those affected by the measure that paragraph or the panel has found to violate this Agreementissues its determination under paragraph 5, as the case may be. 23. In considering which benefits to suspend pursuant to paragraph 1, 2: (a) the complaining Party should first seek to suspend the application of benefits or other obligations in the same sector or sectors as that those affected by the measure or other matter that the panel has found to be inconsistent with the obligations of this Agreement. If Agreement or to have caused nullification or impairment in the sense of Article 20.2.1(c); and (b) the complaining Party that considers that it is not practicable or effective to suspend benefits or other obligations in the same sector or sectors, it sectors may suspend benefits in other sectors. 34. The suspension of benefits shall be temporary and shall only be applied by the complaining Party only until the measure found to violate be inconsistent with the obligations of this Agreement or otherwise nullifying or impairing benefits under Article 20.2.1(c) has been brought into conformity with the rulings of the panel this Agreement, or until such time as the disputing Parties have otherwise settled reached an agreement on a resolution of the dispute. 45. If the Party complained against considers that: (a) the level of benefits that the complaining Party has proposed to be suspended is manifestly excessive; or (b) it has eliminated the non-conformity or the nullification or impairment that the panel has found, it may, within 30 days after the complaining Party provides notice under paragraph 2, request that the original panel be reconvened to consider the matter. The panel shall reconvene as soon as possible after delivery of the request and shall present its determination to the Parties within 90 days after it reconvenes to review a request under either subparagraph (a) or (b), or within 120 days for a request under both subparagraphs (a) and (b). If the panel determines that the level of benefits proposed to be suspended is manifestly excessive, it shall determine the level of benefits it considers to be of equivalent effect. 6. The complaining Party shall notify may suspend benefits up to the Party complained against of the benefits which it intends to suspend, the grounds for such suspension and when suspension will commence, no later than 30 days before the date on which the suspension is due to take effect. Within 15 days from that notification, the Party complained against may request the original panel to rule on any disagreement regarding the notified suspension, including whether the suspension of benefits is justified and whether the benefits which the complaining Party intends to suspend are excessive. The ruling of the panel shall be given within 45 days from that request. Benefits shall not be suspended until level the panel has issued its ruling. 5. In case of disagreement as determined under paragraph 5 or, if the panel has not determined the level, the level the Party has proposed to whether suspend under paragraph 2, unless the panel has determined that the Party complained against has complied with eliminated the report promptly non-conformity or within any other time period decided by the original panel nullification or agreed by the disputing Parties, either of these Parties may refer the dispute to the original panel. The report of the panel shall normally be rendered within 45 days from the request. Benefits shall not be suspended until the panel has issued its rulingimpairment.

NON-IMPLEMENTATION AND SUSPENSION OF BENEFITS. 1. If a panel has made a determination of the type described in Article 22.12.2, and the Parties to the dispute are unable to reach an agreement on a resolution pursuant to Article 22.12.1 within 30 days of receiving the final report, or such other period as the Parties to the dispute may agree, the Party complained againstagainst shall enter into negotiations with the complaining Party with a view to developing acceptable compensation. 2. If the Parties to the dispute: (a) fails are unable to comply with agree on compensation within 30 days after the ruling in the report promptly or within any other time decided by the original panel or agreed by the disputing Partiesperiod for developing such compensation has begun; or (b) fails to comply with an agreement have agreed on compensation or on a resolution pursuant to paragraph 3 of Article 12.16 (Implementation 22.12.1, and the complaining Party considers that the Party complained against has failed to observe the terms of the Report and Compensation) within the time period agreed by the disputing Partiesagreement, the complaining Party may at any time thereafter provide written notice to the Party complained against that it intends to suspend the application to the Party complained against of benefits granted of equivalent effect. The notice shall specify the level of benefits that the complaining Party proposes to suspend. The complaining Party may begin suspending benefits of equivalent effect 15 days after the later of the date on which it provides notice to the other Party to the dispute under this Agreement equivalent to those affected by the measure that paragraph or the panel has found to violate this Agreementissues its determination under paragraph 5, as the case may be. 23. In considering which benefits to suspend pursuant to paragraph 1, 2: (a) the complaining Party should first seek to suspend the application of benefits or other obligations in the same sector or sectors as that those affected by the measure or other matter that the panel has found to be inconsistent with the obligations of this Agreement. If Agreement or to have caused nullification or impairment in the sense of Article 22.2.1(c); and (b) the complaining Party that considers that it is not practicable or effective to suspend benefits or other obligations in the same sector or sectors, it sectors may suspend benefits in other sectors. 34. The suspension of benefits shall be temporary and shall only be applied by the complaining Party only until the measure found to violate be inconsistent with the obligations of this Agreement or otherwise nullifying or impairing benefits under Article 22.2.1(c) has been brought into conformity with this Agreement, or until such time as the rulings Parties to the dispute have otherwise reached an agreement on a resolution of the panel dispute. However, if the Party complained against comprises two or until more Republics of Central America, and one or more complies with the disputing Parties have otherwise settled final report, or reaches a satisfactory agreement with the disputecomplaining Party, the latter shall terminate the suspension of benefits for such Republic or Republics of Central America. 45. If the Party complained against considers that: (a) the level of benefits that the complaining Party has proposed to be suspended is manifestly excessive; or (b) it has eliminated the non-conformity or the nullification or impairment that the panel has found, it may, within 30 days after the complaining Party provides notice under paragraph 2, request that the original panel be reconvened to consider the matter. The Party complained against shall deliver its request in writing to the complaining Party. The panel shall reconvene as soon as possible after delivery of the request and shall present its determination to the Parties to the dispute within 90 days after it reconvenes to review a request under either subparagraph (a) or (b), or within 120 days for a request under both subparagraphs (a) and (b). If the panel determines that the level of benefits proposed to be suspended is manifestly excessive, it shall determine the level of benefits it considers to be of equivalent effect. 6. The complaining Party shall notify may suspend benefits up to the Party complained against of the benefits which it intends to suspend, the grounds for such suspension and when suspension will commence, no later than 30 days before the date on which the suspension is due to take effect. Within 15 days from that notification, the Party complained against may request the original panel to rule on any disagreement regarding the notified suspension, including whether the suspension of benefits is justified and whether the benefits which the complaining Party intends to suspend are excessive. The ruling of the panel shall be given within 45 days from that request. Benefits shall not be suspended until level the panel has issued its ruling. 5. In case of disagreement as determined under paragraph 5 or, if the panel has not determined the level, the level the Party has proposed to whether suspend under paragraph 2, unless the panel has determined that the Party complained against has complied with eliminated the report promptly non-conformity or within any other time period decided by the original panel nullification or agreed by impairment. If the disputing PartiesParty complained against comprises two or more Republics of Central America, either of these Parties may refer the dispute to the original panel. The report of and the panel decides that one or more has complied, the complaining Party shall normally be rendered within 45 days from immediately terminate the request. Benefits shall not be suspended until the panel has issued its rulingsuspension of benefits for such Republic or Republics of Central America.