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Contents Intoroduction Preliminaries Chapter 1 Chapter 2
Chapter 3 Chapter 4 Appendix Index

Annex B Arbitration Procedure

1.

For the purposes of adjudicating upon any dispute referred to in Article XX of the Convention or Article 20 of the Operating Agreement, an Arbitration Tribunal shall be established in accordance with the following paragraphs.

2.

Any Party to the Convention may join either party to the dispute in the arbitration.

3.

The Arbitration Tribunal shall consist of three members. Each party to the dispute shall nominate one arbitrator within a period of two months reckoned from the date of receipt of the request by one party to refer the dispute to arbitration. Where Article XX of the Convention and Article 20 of the Operating Agreement require the agreement of the disputants to refer the dispute to arbitration, the period of two months shall be reckoned from the date of that agreement. The first two arbitrators shall, within a period of two months reckoned from the nomination of the second arbitrator, nominate the third arbitrator, who shall be the Chairman of the Arbitration Tribunal. If one of the two arbitrators has not been nominated within the required period he shall, at the request of either party, be nominated by the President of the International Court of Justice or, if there is no agreement between the parties, the Secretary General of the Permanent Court of Arbitration. The same procedure shall apply if the Chairman of the Arbitration Tribunal has not been nominated within the required period.

4.

The Arbitration Tribunal shall determine its seat and establish its own rules of procedure.

5.

Each party shall bear the cost relating to the arbitrator for whose nomination it is responsible, as well as the costs of being represented before the Tribunal. The expenditure relating to the Chairman of the Arbitration Tribunal shall be shared equally by the parties to the dispute.

6.

The award of the Arbitration Tribunal shall be made by a majority of its members, who may not abstain from voting. This award shall be final and binding on all parties to the dispute and no appeal shall lie against it. The parties shall comply with the award without delay. In the event of a dispute as to its meaning or scope, the Arbitration Tribunal shall interpret it at the request of any party to the dispute.



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