Page 300 - Regional Comprehensive Economic Partnership (RCEP)

subsectors indicated with an “FL”, at any time after three years
from the date on which that commitment has entered into force,
provided that it complies with this Article and that:

(a) it notifies the Committee on Services and Investment of its
intention to modify or withdraw a commitment no later than
three months before the intended date of implementation
of the modification or withdrawal; and

(b) it enters into negotiations with any requesting Party, with a
view to reaching agreement on any necessary
compensatory adjustment.

2. In achieving a compensatory adjustment through the negotiations
referred to in subparagraph 1(b), the Parties concerned shall
endeavour to maintain a general level of mutually advantageous
commitments no less favourable to trade than that provided for in
the modifying Party’s Schedule in Annex II (Schedules of Specific
Commitments for Services) prior to such negotiations.

3. Any compensatory adjustment made pursuant to this Article shall
be accorded on a non-discriminatory basis to all Parties.

4. If the Parties concerned are unable to reach an agreement on the
compensatory adjustment within three months following the last
date on which a request under subparagraph 1(b) has been
made, or another period agreed by the modifying Party and each
requesting Party, a requesting Party may refer the matter to
arbitration. Any Party that wishes to enforce a right that it may
have to compensation must participate in the arbitration. The
modifying Party may not modify or withdraw its commitment until
it has made compensatory adjustments in conformity with the
findings of the arbitration.

5. Arbitrations undertaken pursuant to paragraph 4 shall be
conducted in accordance with the procedures set out in
paragraphs 7 through 19 of Procedures for the Implementation of
Article XXI of the General Agreement on Trade in Services
adopted on 19 July 1999(S/L/80), as may be amended,
(hereinafter referred to as “the GATS Article XXI Procedures” in
this Chapter), which shall apply mutatis mutandis, unless
otherwise decided by the Committee on Services and Investment
under paragraph 10 or unless the parties to the arbitration agree
otherwise.

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