Dispute settlement

The ASEAN FTA includes a robust and transparent government-to-government dispute settlement mechanism to resolve disputes that arise over the interpretation or implementation of the FTA.

The dispute settlement procedures of the ASEAN FTA are in line with New Zealand's standard practice and WTO procedures. The process is compulsory, the outcomes are binding and the procedures for dispute settlement are sufficiently detailed to enable disputes to be dealt with swiftly and effectively.

As a first step, consultations will take place. If consultations are not able to resolve a dispute, a Party (or Parties) may request the establishment of an arbitral tribunal to make findings on the matter at issue. Such findings are binding on the Parties to the dispute. A Party that is not a party to the dispute, but has a substantial interest in a matter before the arbitral tribunal, may also make submissions and be heard by the Arbitral Tribunal as a third party.

Commitments under the Economic Cooperation, Competition, Electronic Commerce and SPS Chapters are excluded from the scope of the dispute settlement mechanism. Commitments under the Movement of Natural Persons Chapter are subject to the dispute settlement mechanism only in limited circumstances.

If the Arbitral Tribunal finds that a Party has failed to carry out its obligations under the ASEAN FTA, then that Party must take steps to comply with its obligations within a reasonable period of time. If that Party does not take such steps within a reasonable period of time, compensation or the suspension of concessions are options available to the disputing parties.

All Parties also retain their ability to take an issue to the WTO as an alternative to dispute settlement under the ASEAN FTA.