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Terms of Reference
for USMCA Advisory Committee on Private Commercial Disputes

1. Mandate of the Committee

  • 1.1 In accordance with USMCA Article 31.22, the Advisory Committee on Private Commercial Disputes (Committee) shall report and provide recommendations to the Free Trade Commission (Commission) on general issues regarding the availability, use and effectiveness of arbitration, mediation, online dispute settlement resolution, and other dispute resolution procedures for the prevention and resolution of private international commercial disputes in the free trade area.
  • 1.2 In accordance with Article 31.22(4), the Committee shall also, to the extent possible, encourage, facilitate, and promote through education, the use of arbitration, mediation, online dispute resolution and other procedures for the prevention and resolution of international commercial disputes between private parties in the free trade area.
  • 1.3 Consistent with paragraphs 1.1 and 1.2 above and USMCA Article 31.22, the Committee may undertake activities such as :
    • 1.3.1 compilation, examination and assessment of availability, use and effectiveness of arbitration, mediation, online dispute settlement and other dispute resolution procedures for the settlement of private international commercial disputes;
    • 1.3.2 identification of sectors and types of businesses that would particularly benefit from the use of alternative dispute resolution (ADR);
    • 1.3.3 promotion of the use of arbitration and other alternative mechanisms for the resolution of private international commercial disputes in the USMCA region, including ways to increase private sector awareness of the benefits of using ADR;
    • 1.3.4 facilitation of the use of arbitration and other procedures in the USMCA region, including the use of model ADR and other contractual clauses;
    • 1.3.5 opportunities for expanded cooperation between institutions with an interest or involvement in ADR in the USMCA region; and
    • 1.3.6 issues relating to the enforcement of arbitration agreements and awards, and other litigation issues related to ADR.
  • 1.4 The Commission may at any time refer specific matters within the scope of Article 31.22 to the Committee for its report and recommendations.

2. Membership of the Committee

  • 2.1 The Committee will comprise up to 10 members from each Party, up to two of whom may be officials representing the Party and up to eight of whom may be selected from outside the Government. Each Party may also designate up to three alternate members of the committee.
  • 2.2 Consistent with Article 34.1(3) of USMCA each Party will appoint its own members of the Committee, and may establish terms for their appointment.
  • 2.3 The government representatives will serve as the chairs of the Committee.

3. Agenda for Committee Meetings

  • 3.1 The chairs will, in developing the agenda for a meeting, consult with and take fully into consideration the views of the members on specific issues to be considered by the Committee.
  • 3.2 The chairs will circulate the agenda to the full Committee in advance of each meeting.

4. Meetings of the Committee

  • 4.1 Meetings of the Committee will normally be hosted successively by each Party and will be presided over by the chairs of that Party.
  • 4.2 The chairs, by consensus, after having consulted with the members, may invite individuals who are not members of the Committee to participate in a meeting as appropriate.
  • 4.3 The chairs, by consensus, after having consulted with the members, will approve all actions and prepare all reports of the Committee and determine which recommendations should be submitted to the Commission, taking fully into account the views and positions of all Committee members.
  • 4.4 The Committee may establish subcommittees to address specific issues within the scope of these Terms of Reference. A subcommittee may include individuals who are not members of the Committee, if so agreed by the Parties, in which case, each Party may appoint its own members to such subcommittee.
  • 4.5 The Committee will meet at least once each year at which time the Committee may review and consider modifications to these Terms of Reference, as appropriate.
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