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Report No. 260

E. Article 14.4(4). Additional conditions precedent for submission of dispute to arbitration.

(i) Analysis and comment:

5.5.1 Article 14.4(i)A(b) gives a party a maximum of 18 months from the completion of domestic remedies to negotiate and amicably resolve the dispute. This period would also include the mandatory minimum of a one-year period for negotiation. If respondent parties wish for there to be an actual possibility of negotiation, the same must not be time-barred, and instead the limitation for arbitration must be calculated from the breakdown of negotiations.

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