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Annex  1901.2:  Establishment  of  Binational  Panels

1.  On  the  date  of  entry  into  force  of  this  Agreement,  the  Parties  shall  establish  and  thereafter  maintain  a  roster  of  individuals  to  serve  as  panelists  in  disputes  under  this  Chapter.  The  roster  shall  include  judges  or  former  judges  to  the  fullest  extent  practicable.  The  Parties  shall  consult  in  developing  the  roster,  which  shall  include  at  least  75  candidates.  Each  Party  shall  select  at  least  25  candidates,  and  all  candidates  shall  be  citizens  of  Canada,  Mexico  or  the  United  States.  Candidates  shall  be  of  good  character,  high  standing  and  repute,  and  shall  be  chosen  strictly  on  the  basis  of  objectivity,  reliability,  sound  judgment  and  general  familiarity  with  international  trade  law.  Candidates  shall  not  be  affiliated  with  a  Party,  and  in  no  event  shall  a  candidate  take  instructions  from  a  Party.  The  Parties  shall  maintain  the  roster,  and  may  amend  it,  when  necessary,  after  consultations.

2.  A  majority  of  the  panelists  on  each  panel  shall  be  lawyers  in  good  standing.  Within  30  days  of  a  request  for  a  panel,  each  involved  Party  shall  appoint  two  panelists,  in  consultation  with  the  other  involved  Party.  The  involved  Parties  normally  shall  appoint  panelists  from  the  roster.  If  a  panelist  is  not  selected  from  the  roster,  the  panelist  shall  be  chosen  in  accordance  with  and  be  subject  to  the  criteria  of  paragraph  1.  Each  involved  Party  shall  have  the  right  to  exercise  four  peremptory  challenges,  to  be  exercised  simultaneously  and  in  confidence,  disqualifying  from  appointment  to  the  panel  up  to  four  candidates  proposed  by  the  other  involved  Party.  Peremptory  challenges  and  the  selection  of  alternative  panelists  shall  occur  within  45  days  of  the  request  for  the  panel.  If  an  involved  Party  fails  to  appoint  its  members  to  a  panel  within  30  days  or  if  a  panelist  is  struck  and  no  alternative  panelist  is  selected  within  45  days,  such  panelist  shall  be  selected  by  lot  on  the  31st  or  46th  day,  as  the  case  may  be,  from  that  Party's  candidates  on  the  roster.

3.  Within  55  days  of  the  request  for  a  panel,  the  involved  Parties  shall  agree  on  the  selection  of  a  fifth  panelist.  If  the  involved  Parties  are  unable  to  agree,  they  shall  decide  by  lot  which  of  them  shall  select,  by  the  61st  day,  the  fifth  panelist  from  the  roster,  excluding  candidates  eliminated  by  peremptory  challenges.

4.  On  appointment  of  the  fifth  panelist,  the  panelists  shall  promptly  appoint  a  chairman  from  among  the  lawyers  on  the  panel  by  majority  vote  of  the  panelists.  If  there  is  no  majority  vote,  the  chairman  shall  be  appointed  by  lot  from  among  the  lawyers  on  the  panel.

5.  Decisions  of  the  panel  shall  be  by  majority  vote  and  based  on  the  votes  of  all  members  of  the  panel.  The  panel  shall  issue  a  written  decision  with  reasons,  together  with  any  dissenting  or  concurring  opinions  of  panelists.

6.  Panelists  shall  be  subject  to  the  code  of  conduct  established  pursuant  to  Article  1909  --721-Art.  1909--.  If  an  involved  Party  believes  that  a  panelist  is  in  violation  of  the  code  of  conduct,  the  involved  Parties  shall  consult  and  if  they  agree,  the  panelist  shall  be  removed  and  a  new  panelist  shall  be  selected  in  accordance  with  the  procedures  of  this  Annex.

7.  When  a  panel  is  convened  pursuant  to  Article  1904  --721-Art.  1904--  each  panelist  shall  be  required  to  sign:

8.  On  a  panelist's  acceptance  of  the  obligations  and  terms  of  an  application  for  protective  order  or  disclosure  undertaking,  the  importing  Party  shall  grant  access  to  the  information  covered  by  such  order  or  disclosure  undertaking.  Each  Party  shall  establish  appropriate  sanctions  for  violations  of  protective  orders  or  disclosure  undertakings  issued  by  or  given  to  any  Party.  Each  Party  shall  enforce  such  sanctions  with  respect  to  any  person  within  its  jurisdiction.  Failure  by  a  panelist  to  sign  an  application  for  a  protective  order  or  disclosure  undertaking  shall  result  in  disqualification  of  the  panelist.

9.  If  a  panelist  becomes  unable  to  fulfill  panel  duties  or  is  disqualified,  proceedings  of  the  panel  shall  be  suspended  pending  the  selection  of  a  substitute  panelist  in  accordance  with  the  procedures  of  this  Annex.

10.  Subject  to  the  code  of  conduct  established  pursuant  to  Article  1909  --721-Art.  1909--,  and  provided  that  it  does  not  interfere  with  the  performance  of  the  duties  of  such  panelist,  a  panelist  may  engage  in  other  business  during  the  term  of  the  panel.

11.  While  acting  as  a  panelist,  a  panelist  may  not  appear  as  counsel  before  another  panel.

12.  With  the  exception  of  violations  of  protective  orders  or  disclosure  undertakings,  signed  pursuant  to  paragraph  7,  panelists  shall  be  immune  from  suit  and  legal  process  relating  to  acts  performed  by  them  in  their  official  capacity.