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Agreement between the Government of the Hashemite Kingdom of Jordan and the Government of the Republic of Singapore on the Establishment of a Free Trade Area >>
Annex 7A: Arbitral Tribunals
Agreement between the Government of the Hashemite Kingdom of Jordan and the Government of the Republic of Singapore on the Establishment of a Free Trade Area
Appointment and Composition of Arbitral Tribunals
- Unless otherwise agreed by the Parties, the arbitral tribunal shall
consist of three arbitrators. Each Party shall appoint one arbitrator,
and the two arbitrators so appointed shall choose a third who shall serve as
the chairperson. If a Party fails to appoint an arbitrator within 30 days after
a matter has been referred to an arbitral tribunal, an arbitrator shall be
appointed, at the request of the other Party, by the Director-General of the
World Trade Organisation within 30 days from the date of the request. If the
two appointed arbitrators of an arbitral tribunal are unable to agree
on the chairperson of the arbitral tribunal within 30 days after the
date on which the second arbitrator has been appointed, the chairperson shall
at the request of either Party, by the
Director-General of the World Trade
Organisation within 30 days from the date of the latter request.
- Any person appointed to serve as an arbitrator or chairperson in an
arbitral tribunal shall have expertise in law, international trade or the
resolution of disputes arising under international trade agreements and
shall be chosen strictly on the basis of objectivity, sound judgment
and independence. The chairperson shall not be a national of either
Party and shall not have his usual place of residence in the
territory of, nor be employed by, either Party.
- If an arbitrator appointed under this Article resigns or
becomes unable to act, a successor arbitrator shall be appointed in
the same manner as prescribed for the appointment of the original
arbitrator and the successor shall have all the powers and duties of the
- Each Party shall bear the costs of its appointed arbitrator and its
own expenses and legal costs. The costs of the chairperson of the arbitral
tribunal and other expenses associated with the conduct of its proceedings shall
be borne in equal parts by both Parties.
- Where for any reason, the arbitral tribunal is unable to carry out
its duties under this Agreement, a new arbitral tribunal shall be appointed in
accordance with this Article.
Functions of Arbitral Tribunals
- The function of an arbitral tribunal is to make an
objective assessment of the dispute before it, including an examination
of the facts of the case and the applicability of and conformity with
this Agreement. Where the arbitral tribunal concludes that a measure is
inconsistent with a provision of this Agreement, it shall recommend that a Party
bring the measure into conformity with that provision.
- An arbitral tribunal shall take its decisions by consensus,
provided that where it is unable to reach a consensus, it shall take its
decision by majority vote. An arbitral tribunal may take its findings and
recommendations upon the default of a Party.
- An arbitral tribunal shall settle the dispute in accordance with
the provisions of this Agreement, interpreted in accordance with customary
rules of interpretation of public international law.
Proceedings of Arbitral Tribunals
- An arbitral tribunal shall, in consultation with the Parties and
apart from the matters set out in this Article, regulate its own
procedures unless the Parties agree otherwise in writing. The arbitral
tribunal shall ensure:
(a) that each Party has the right to at least one hearing
before the arbitral tribunal;
(b) that each Party has the right to make initial submissions and
(c) that a copy of any submissions or documents that a Party
submits to the arbitral tribunal shall also be simultaneously provided
to the other Party; and
(d) the protection of information designated as confidential by the
- The arbitral tribunal shall, within 90 days after the chairperson
is appointed, or as otherwise agreed by both Parties, present to the Parties an
initial report containing
its findings of fact and its
determinations and rulings on the dispute before it. A Party may submit
written comments on the initial report to the arbitral tribunal within
15 days of the presentation of the initial report.
- After considering any written comments by the Parties on
the initial report, the
arbitral tribunal may modify its
report and make any further examination it considers appropriate. The
arbitral tribunal shall present a final report to the Parties within 30 days
of presentation of the initial report, unless the Parties agree
otherwise. The final report of the arbitral tribunal shall be binding.
- An arbitral tribunal shall meet in closed session to the public.
The deliberations of
an arbitral tribunal and the documents
submitted to it shall be kept confidential. Nothing in this Annex
shall preclude a Party from disclosing statements of its position or
its submissions to the public; provided that a Party shall treat as
confidential any information submitted by the other Party to the
arbitral tribunal which that Party has designated as confidential.
- There shall be no ex parte communications with the
arbitral tribunal concerning any matter under consideration by it. The
arbitral tribunal may seek information and technical advice from any person
or body that it deems appropriate, provided that the Parties agree, and subject
to any terms and conditions that the Parties may agree to impose.
- When the arbitral tribunal considers that it cannot provide its
report(s) within the timeframes set out in this Annex, it shall inform
the Parties in writing of the reasons for the delay together with an
estimate of the period within which it will submit such reports.
Implementation, Compensation and Suspension of Benefits
- Upon the presentation of the arbitral tribunal’s final
report, the Joint Committee shall endeavour to resolve the dispute
through any means it deems appropriate, taking the report into account. If
the Joint Committee does not resolve the dispute within a period of 30 days
after the presentation of the arbitral tribunal final report, the Parties shall
comply with the recommendations of the arbitral tribunal within a reasonable
period of time, which shall be mutually determined by the Parties,
within a further 15 days after the expiration of aforesaid 30 days.
- If the Parties fail to agree on the reasonable period of time
within the time provided above, either Party may refer the matter to the
original arbitral tribunal, which shall determine the reasonable period of
time following consultations with the Parties. Where the original arbitral
tribunal cannot hear the matter for any reason, a new arbitral tribunal shall be
appointed pursuant to Article 1 of this Annex.
- The arbitral tribunal shall provide its report on the reasonable
period of time to the
Parties within 45 days after the date of the
referral of the matter to it. If the Party concerned fails to remove or bring
the measure found to be inconsistent with the Agreement into compliance with
the report of the arbitral tribunal within the reasonable period of time,
that Party shall, if so requested, immediately enter into negotiations with
the complaining Party with a view to reaching a mutually satisfactory
agreement on any necessary compensatory adjustment.
- If no mutually satisfactory agreement on compensation has been
reached within 21 days after the commencement of negotiations on
compensatory adjustment, the complaining Party shall be entitled to
suspend only the application of benefits granted under this Agreement
equivalent to those affected by the measure found to
within this Agreement.
- In considering what benefits to suspend under Article 4.4 of this
- the Party that invoked the dispute settlement procedures should first seek
to suspend benefits in the same sector or sectors as that affected by
the measure that the arbitral tribunal has found to be inconsistent
with this Agreement; and
- the Party having invoked the dispute settlement procedures may
suspend benefits in other sectors if it is not practicable or
effective to suspend benefits in the same sector or sectors.
- The complaining Party shall notify the other Party of the benefits,
which it intends
to suspend no later than 30 days before the date on
which the suspension is due to take effect. Within 15 days from that
notification, the other Party may request the original arbitral tribunal to
rule on whether the benefits which the complaining Party intends to
suspend are equivalent to those affected by the measure found to
be inconsistent with this Agreement. The ruling of the arbitral
tribunal shall be given within 30 days of that request. In such a case, no
Party shall be entitled to suspend such benefits until the arbitral
tribunal has issued its ruling. Where the original arbitral tribunal
cannot hear the matter for any reason, a new arbitral tribunal shall be
appointed pursuant to Article 1 of this Annex.
- The suspension of benefits shall be temporary and shall only be
applied until such
time as the measure found to be
inconsistent with this Agreement has been removed, or the Party that must
implement the arbitral tribunal’s recommendations has done so, or a
mutually satisfactory solution is reached.
- Any dispute between the Parties on whether a measure found
to be inconsistent with this Agreement has been removed or brought into
conformity with the arbitral tribunal’s recommendations shall be referred
to the original arbitral tribunal for a final decision. The complaining Party
shall refer the matter to the arbitral tribunal together with its submissions
and the other Party shall respond within 15 days thereafter so that the
arbitral tribunal can give its final decision within 15 days of the latter
Party’s response. Where the original arbitral tribunal cannot hear
the matter for any reason, a new arbitral tribunal shall be appointed pursuant
1 of this Annex.
Suspension and Termination of Proceedings
- Where the Parties agree in writing, the arbitral tribunal may
suspend its work at any time for a period not exceeding 12 months from the date
of such agreement. If the work of the arbitral tribunal has been suspended for
more than 12 months from the date of such agreement, the authority for
establishment of the tribunal shall automatically lapse unless the Parties
- The Parties may agree in writing to terminate the proceedings of an
arbitral tribunal established under this Agreement.