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Dispute Settlement

A robust and transparent framework for dispute settlement was established given the comprehensiveness and level of ambition of the AANZFTA. Aside from the dispute settlement provisions in Section B of Chapter 11 (Investment), the Chapter on Consultations and Dispute Settlement establishes the process for consultations and settlement of other disputes arising from the implementation of the AANZFTA.

While Parties are encouraged to make every effort to achieve mutually agreed solutions to any dispute arising from the implementation of the AANZFTA, Parties could also have recourse to the following:

  • Consultations with any other Party with respect to any dispute arising under the AANZFTA as provided under Article 6 (Consultations).
  • Good offices, conciliation and mediation that may begin and be terminated at any time as provided under Article 7 (Goods Offices, Conciliation and Mediation).
  • Arbitral Tribunals, which may be established in accordance with the adjudication provisions in Section C of Chapter 17.

The implementation provisions in Section C of Chapter 17 obligate a concerned Party to comply with its obligations should the arbitral tribunal rules that that Party has failed to carry out its commitments under the AANZFTA. Compensation and suspension of concession are some of the temporary measures that have been made available in case a Party does not comply with the arbitral tribunal decision.

A salient feature of the dispute settlement mechanism under the AANZFTA is contained in Article 18 of Chapter 17 providing special and differential treatment involving Newer ASEAN Member States.

Read the Agreement: Chapter 17. Consultations and Dispute Settlement