Page 301 - Regional Comprehensive Economic Partnership (RCEP)

subsectors indicated with an “FL”, at any time after three years 6. If the modifying Party implements its proposed modification or
from the date on which that commitment has entered into force, withdrawal and does not comply with the findings of the
provided that it complies with this Article and that: arbitration, any Party that participated in the arbitration may
modify or withdraw substantially equivalent benefits in conformity
(a) it notifies the Committee on Services and Investment of its with those findings. Such a modification or withdrawal may be
intention to modify or withdraw a commitment no later than implemented solely with respect to the modifying Party.
three months before the intended date of implementation
of the modification or withdrawal; and 7. If no Party has requested:

(b) it enters into negotiations with any requesting Party, with a (a) negotiations under subparagraph 1(b) within 45 days of the
view to reaching agreement on any necessary date of a notification made pursuant to subparagraph 1(a);
compensatory adjustment. or

2. In achieving a compensatory adjustment through the negotiations (b) arbitration pursuant to paragraph 4,
referred to in subparagraph 1(b), the Parties concerned shall
endeavour to maintain a general level of mutually advantageous the modifying Party shall be free to implement its proposed
commitments no less favourable to trade than that provided for in modification or withdrawal, notwithstanding Article 20.4
the modifying Party’s Schedule in Annex II (Schedules of Specific (Amendments), in accordance with the procedures set out in
Commitments for Services) prior to such negotiations. paragraphs 20 through 22 of the GATS Article XXI Procedures,
which shall apply mutatis mutandis, unless otherwise decided by
3. Any compensatory adjustment made pursuant to this Article shall the Committee on Services and Investment under paragraph 10.
be accorded on a non-discriminatory basis to all Parties.
8. For the avoidance of doubt, for the purposes of paragraphs 5 and
4. If the Parties concerned are unable to reach an agreement on the 7, references in the GATS Article XXI Procedures to:
compensatory adjustment within three months following the last
date on which a request under subparagraph 1(b) has been (a) “the Secretariat” and “the Council for Trade in Services”
made, or another period agreed by the modifying Party and each shall be read as references to the Committee on Services
requesting Party, a requesting Party may refer the matter to and Investment;
arbitration. Any Party that wishes to enforce a right that it may
have to compensation must participate in the arbitration. The (b) “Article XXI” shall be read as references to Article 8.13
modifying Party may not modify or withdraw its commitment until (Modification of Schedules); and
it has made compensatory adjustments in conformity with the
findings of the arbitration. (c) “Members of the WTO” shall be read as references to the
Parties.
5. Arbitrations undertaken pursuant to paragraph 4 shall be
conducted in accordance with the procedures set out in 9. In the event of any inconsistency between this Agreement and the
paragraphs 7 through 19 of Procedures for the Implementation of GATS Article XXI Procedures, this Agreement shall prevail to the
Article XXI of the General Agreement on Trade in Services extent of the inconsistency.
adopted on 19 July 1999(S/L/80), as may be amended,
(hereinafter referred to as “the GATS Article XXI Procedures” in 10. The Committee on Services and Investment may establish or
this Chapter), which shall apply mutatis mutandis, unless amend procedures for the modification or withdrawal of a Party’s
otherwise decided by the Committee on Services and Investment commitments in its Schedule in Annex II (Schedules of Specific
under paragraph 10 or unless the parties to the arbitration agree Commitments for Services) or the conduct of arbitration, under
otherwise. this Article. Any Party that seeks to modify or withdraw its
commitments under this Article shall do so in accordance with any
such procedures.

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