European Energy Charter 12

European Energy Charter

 

ARTICLE 27

Settlement of Disputes BETWEEN CONTRACTING PARTIES

(1) Contracting Parties shall endeavour to settle disputes concerning the
application or interpretation of this Treaty through diplomatic channels.

(2) If a dispute has not been settled in accordance with paragraph (1) within a
reasonable period of time, either party thereto may, except as otherwise
provided in this Treaty or agreed in writing by the Contracting Parties, and
except as concerns the application or interpretation of Article 6 or Article 19
or, for Contracting Parties listed in Annex IA, the last sentence of Article
10(1), upon written notice to the other party to the dispute submit the matter
to an ad hoc tribunal under this Article.

(3) Such an ad hoc arbitral tribunal shall be constituted as follows:

(a) The Contracting Party instituting the proceedings shall appoint one
member of the tribunal and inform the other Contracting Party to the dispute of
its appointment within 30 days of receipt of the notice referred to in paragraph
(2) by the other Contracting Party;

(b) Within 60 days of the receipt of the written notice referred to in
paragraph (2), the other Contracting Party party to the dispute shall appoint
one member. If the appointment is not made within the time limit prescribed,
the Contracting Party having instituted the proceedings may, within 90 days of
the receipt of the written notice referred to in paragraph (2), request that the
appointment be made in accordance with subparagraph (d);
(c) A third member, who may not be a national or citizen of a Contracting
Party party to the dispute, shall be appointed by the Contracting Parties
parties to the dispute. That member shall be the President of the tribunal.
If, within 150 days of the receipt of the notice referred to in paragraph (2),
the Contracting Parties are unable to agree on the appointment of a third
member, that appointment shall be made, in accordance with subparagraph (d), at
the request of either Contracting Party submitted within 180 days of the receipt
of that notice;

(d) Appointments requested to be made in accordance with this paragraph shall
be made by the Secretary-General of the Permanent Court of International
Arbitration within 30 days of the receipt of a request to do so. If the
Secretary-General is prevented from discharging this task, the appointments
shall be made by the First Secretary of the Bureau. If the latter, in turn, is
prevented from discharging this task, the appointments shall be made by the most
senior Deputy;

(e) Appointments made in accordance with subparagraphs (a) to (d) shall be
made with regard to the qualifications and experience, particularly in matters
covered by this Treaty, of the members to be appointed;

(f) In the absence of an agreement to the contrary between the Contracting
Parties, the Arbitration Rules of UNCITRAL shall govern, except to the extent
modified by the Contracting Parties parties to the dispute or by the
arbitrators. The tribunal shall take its decisions by a majority vote of its
members;

(g) The tribunal shall decide the dispute in accordance with this Treaty and
applicable rules and principles of international law;

(h) The arbitral award shall be final and binding upon the Contracting
Parties parties to the dispute;

(i) Where, in making an award, a tribunal finds that a measure of a regional
or local government or authority within the Area of a Contracting Party listed
in Part I of Annex P is not in conformity with this Treaty, either party to the
dispute may invoke the provisions of Part II of Annex P;

(j) The expenses of the tribunal, including the remuneration of its members,
shall be borne in equal shares by the Contracting Parties parties to the
dispute. The tribunal may, however, at its discretion direct that a higher
proportion of the costs be paid by one of the Contracting Parties parties to the
dispute;

(k) Unless the Contracting Parties parties to the dispute agree otherwise,
the tribunal shall sit in The Hague, and use the premises and facilities of the
Permanent Court of Arbitration ;

(l) A copy of the award shall be deposited with the Secretariat which shall
make it generally available.

ARTICLE 28 NON-APPLICATION OF ARTICLE 27 TO CERTAIN DISPUTES

A dispute between Contracting Parties with respect to the application or
interpretation of Article 5 or 29 shall not be settled under Article 27 unless
the Contracting Parties parties to the dispute so agree.

PART VI

TRANSITIONAL PROVISIONS

ARTICLE 29

INTERIM PROVISIONS ON TRADE-RELATED MATTERS

(1) The provisions of this Article shall apply to trade in Energy Materials and
Products while any Contracting Party is not a party to the GATT and Related
Instruments.

(2) (a) Trade in Energy Materials and Products between Contracting Parties at
least one of which is not a party to the GATT or a relevant Related Instrument
shall be governed, subject to subparagraphs (b) and (c) and to the exceptions
and rules provided for in Annex G, by the provisions of GATT 1947 and Related
Instruments, as applied on 1 March 1994 and practised with regard to Energy
Materials and Products by parties to GATT 1947 among themselves, as if all
Contracting Parties were parties to GATT 1947 and Related Instruments.

(b) Such trade of a Contracting Party which is a state that was a constituent
part of the former Union of Soviet Socialist Republics may instead be governed,
subject to the provisions of Annex TFU, by an agreement between two or more such
states, until 1 December 1999 or the admission of that Contracting Party to the
GATT, whichever is the earlier.

(c) As concerns trade between any two parties to the GATT, subparagraph (a)
shall not apply if either of those parties is not a party to GATT 1947.

(3) Each signatory to this Treaty, and each state or Regional Economic
Integration Organization acceding to this Treaty, shall on the date of its
signature or of its deposit of its instrument of accession provide to the
Secretariat a list of all tariff rates and other charges levied on Energy
Materials and Products at the time of importation or exportation, notifying the
level of such rates and charges applied on such date of signature or deposit.
Any changes to such rates or other charges shall be notified to the Secretariat,
which shall inform the Contracting Parties of such changes.

(4) Each Contracting Party shall endeavour not to increase any tariff rate or
other charge levied at the time of importation or exportation:

(a) in the case of the importation of Energy Materials and Products described
in Part I of the Schedule relating to the Contracting Party referred to in
article II of the GATT, above the level set forth in that Schedule, if the
Contracting Party is a party to the GATT;

(b) in the case of the exportation of Energy Materials and Products, and that
of their importation if the Contracting Party is not a party to the GATT, above
the level most recently notified to the Secretariat, except as permitted by
the provisions made applicable by subparagraph (2)(a).

(5) A Contracting Party may increase such tariff rate or other charge
above the level referred to in paragraph (4) only if:

(a) in the case of a rate or other charge levied at the time of importation,
such action is not inconsistent with the applicable provisions of the GATT other
than those provisions of GATT 1947 and Related Instruments listed in Annex G and
the corresponding provisions of GATT 1994 and Related Instruments; or

(b) it has, to the fullest extent practicable under its legislative
procedures, notified the Secretariat of its proposal for such an increase, given
other interested Contracting Parties reasonable opportunity for consultation
with respect to its proposal, and accorded consideration to any representations
from such Contracting Parties.

(6) Signatories undertake to commence negotiations not later than 1 January 1995
with a view to concluding by 1 January 1998, as appropriate in the light of any
developments in the world trading system, a text of an amendment to this Treaty
which shall, subject to conditions to be laid down therein, commit each
Contracting Party not to increase such tariffs or charges beyond the level
prescribed under that amendment.

(7) Annex D shall apply to disputes regarding compliance with provisions
applicable to trade under this Article and, unless both Contracting Parties
agree otherwise, to disputes regarding compliance with Article 5 between
Contracting Parties at least one of which is not a party to the GATT, except
that Annex D shall not apply to any dispute between Contracting Parties, the
substance of which arises under an agreement that:

(a) has been notified in accordance with and meets the other requirements of
subparagraph (2)(b) and Annex TFU; or

(b) establishes a free-trade area or a customs union as described in article
XXIV of the GATT.

ARTICLE 30

DEVELOPMENTS IN INTERNATIONAL TRADING ARRANGEMENTS

Contracting Parties undertake that in the light of the results of the Uruguay
Round of Multilateral Trade Negotiations embodied principally in the Final Act
thereof done at Marrakesh, 15 April 1994, they will commence consideration not
later than 1 July 1995 or the entry into force of this Treaty, whichever is the
later, of appropriate amendments to this Treaty with a view to the adoption of
any such amendments by the Charter Conference.

 

Conclusion

Notes

See Also

References and Further Reading

About the Author/s and Reviewer/s

Author: international

Mentioned in these Entries

European Energy Charter, Permanent Court of Arbitration, Settlement of Disputes.


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