|
 |
|
|
|
Protocol on ASEAN Dispute Settlement Mechanism (DSM) signed |
The ASEAN Economic Ministers signed the Protocol on Dispute Settlement Mechanism (DSM) on 20 November 1996 in Manila.
As ASEAN expands its membership and as the level of economic cooperation is deepened, the likelihood of misunderstandings among Member States is also likely to increase. The Protocol on Dispute Settlement Mechanism will create an expeditious and transparent process of resolving disputes in ASEAN. Under the ASEAN DSM, the entire process of dispute settlement has a maximum length of 290 days.
The ASEAN DSM, which is patterned after the WTO Dispute Settlement Understanding, will apply to all past and future ASEAN economic agreements. Member States who have disagreements are encouraged to undertake bilateral consultations so as to reach an amicable settlement. Other Member States may offer good offices and mediation.
Should no amicable settlement be reached, the issue is elevated to SEOM. A panel of experts will be convened by SEOM to assist them in making rulings. The panel's task includes fact-finding and determining the applicability of relevant ASEAN agreements.
An important new element introduced by the DSM is that rulings by SEOM on disputes is by simple majority and not by consensus. Hence the ASEAN DSM represents the first formal use of non-consensual decision making in ASEAN.
Under the Protocol, the ASEAN Economic Ministers shall serve as the final appellate body. Its decisions on appeals shall be by simple majority. The decision shall be final and binding on all parties to the dispute.
The Protocol also provides for a maximum of 30 days in which the parties concerned shall implement the ruling of SEOM or the decision of the AEM. Member States are also required to give a written report of the progress they have made in implementing these rulings or decisions.
Should parties concerned fail to implement the SEOM or AEM decision, the Protocol requires them to enter into negotiations to provide satisfactory compensation to the other parties. If no mutually acceptable compensation is worked out, then the party which has invoked the dispute settlement procedures may request authorization from the AEM to suspend the application to the Member State concerned of any applicable concessions.
|
| |
|
|
|
