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Article 14.13
Compensation and Suspension of Concessions or Other Obligations
1. If the Party complained against fails to notify any measure taken to comply with the final report of the arbitration panel in accordance with Article 14.12 (Implementation of the Arbitration Panel Report), or if the arbitration panel determines that any measure notified under Article 14.12 (Implementation of the Arbitration Panel Report) does not exist or is inconsistent with any provision of this Agreement, the Party complained against shall enter into negotiations with the complaining Party, with a view to reaching a mutually acceptable agreement on compensation.
2. If the disputing Parties fail to agree on compensation within thirty (30) days after:
(a) the expiry of the reasonable period of time; or
(b) the issuance of the arbitration panel's determination that any measure notified under Article 14.12 (Implementation of the Arbitration Panel Report) does not exist or is inconsistent with any provision of this Agreement,
as the case may be, the complaining Party shall be entitled, upon notification to the Party complained against, to suspend concessions or other obligations arising from this Agreement of equivalent effect to those affected by the measure that the arbitration panel has found to be inconsistent with this Agreement. The notification shall specify the level of concessions or other obligations that the complaining Party intends to suspend and indicate the reasons on which the suspension is based. The complaining Party may begin implementing the suspension twenty (20) days after the delivery of its notification to the Party complained against, subject to paragraph 4.
3. In considering what concessions or other obligations to suspend pursuant to paragraph 2:
(a) the complaining Party should first seek to suspend concessions or other obligations with respect to the same sector as that in which the final report of the arbitration panel referred to in Article 14.11 (Interim and Final Arbitration Panel Report) has found an inconsistency with the obligations under this Agreement;
(b) if the complaining Party considers that it is not practicable or effective to suspend concessions or other obligations with respect to the same sector, it may suspend concessions or other obligations with respect to other sectors; and
(c) the complaining Party will take into consideration those concessions or other obligations the suspension of which would least disturb the functioning of this Agreement.
4. The Party complained against may request in writing the original arbitration panel to make a determination on whether the level of concessions or other obligations that the complaining Party intends to suspend is equivalent to those affected by the measure that the arbitration panel has found to be inconsistent with this Agreement. Such request shall be notified to the complaining Party before the expiry of the twenty (20)-day period referred to in paragraph 2. The original arbitration panel, having sought, if appropriate, the opinion of experts, shall issue to the disputing Parties its determination no later than thirty (30) days after the date of the submission of the request. Concessions or other obligations shall not be suspended until the arbitration panel has issued its determination and any suspension shall be consistent with the arbitration panel's determination.
5. In the event that any member of the original arbitration panel is no longer available, the procedures laid down in Article 14.8 (Composition and Establishment of the Arbitration Panel) shall apply. The time limit for issuing the determination shall be no later than forty-five (45) days 23 after the date of the submission of the request referred to in paragraph 4.
6. The compensation referred to in paragraph 1 and the suspension referred to in paragraph 2 are temporary measures. Neither compensation nor suspension is preferred to full elimination of any non-conformity with this Agreement as determined in the final report of the arbitration panel. Any suspension shall only be applied until such time as the non-conformity is fully eliminated, or the non-conformity is determined in accordance with Article 14.14 (Compliance Review) to have been eliminated, or the disputing Parties have otherwise reached a mutually satisfactory solution.
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