Common use of Arbitration Tribunal Clause in Contracts

Arbitration Tribunal. (1) Disputes regarding the interpretation and application of this Treaty may, at the request of either Contracting Party, be brought before an arbitration tribunal for settlement in accordance with the Permanent Court of Arbitration Optional Rules for Arbitrating Disputes between Two States. (2) Arbitration tribunals shall be formed on a case-by-case basis; each Contracting Party shall appoint a member; the members shall agree on a chairperson, who shall be a citizen of a third State, and the chairperson shall be appointed by the Governments of the Contracting Parties. The members shall be appointed within two months, and the chairperson within three months, after one Contracting Party has notified the other of its wish to bring dispute before an arbitration tribunal. (3) If the time limits referred to in paragraph 2 are not adhered to, either Contracting Party may, in the absence of any other agreement, request the President of the International Court of Justice in The Hague to make the necessary appointments. If the President is a citizen of either Contracting Party or is prevented from acting for any other reason, his or her substitute shall make the appointments. If the substitute is also a citizen of either Contracting Party or is prevented from acting, his or her substitute shall make the appointments. (4) The arbitration tribunal shall decide, by simple majority, on the basis of this Treaty and of international law. Its decisions shall be binding and shall be honoured by the Contracting Parties. Each Contracting Party shall bear the costs of the arbitrator whom it has appointed and of its representation before the arbitration tribunal; the costs of the chairperson and other costs shall be borne in equal measure by the Contracting Parties. In all other respects, the arbitration tribunal shall establish its rules of procedure after consultation with the Contracting Parties and on the basis of internationally accepted procedural principles.