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- Any dispute between the Contracting Parties concerning the interpretation or application of the present Agreement which cannot be settled within a reasonable lapse of time, by means of diplomatic negotiations, shall, unless the Parties have otherwise agreed, be submitted, at the request of either Party, to an arbitral tribunal composed of three members. Each Party shall appoint one arbitrator and the two arbitrators thus appointed shall together agree upon a third arbitrator, who is not a national of either Party, to be appointed by the Parties as their chairman.
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- The arbitrators shall be appointed within two months and the chairman within three months from the date on which either Party has requested the submission to arbitration.
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- If the necessary appointments have not been made within the periods specified in paragraph (2) of this Article, either Party may invite the President of the International Court of Justice to make the necessary appointments. If the President of the International Court of Justice is prevented from discharging the said function or is a national of either Party, the Vice-President shall be invited to make the necessary appointments. If the Vice-President is prevented from discharging the said function or is a national of either Party, the most senior member of the Court available who is not a national of either Party shall be invited to make the necessary appointments.
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- The tribunal shall decide on the basis of international law and any treaties in force between the Parties (including the present Agreement) and shall take into account, as may be appropriate, the relevant domestic law.
- Before the tribunal decides, it may at any stage of the proceedings propose to the Parties that the dispute be settled amicably. The foregoing provisions shall not prejudice the power of the tribunal to decide the dispute ex aequo et bono if the Parties so agree.
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- Unless the Parties decide otherwise, the tribunal shall determine its own procedure.
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- The tribunal shall reach its decision by a majority of votes. Such decision shall be final and binding on the Parties.
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- If any legal dispute is referred to conciliation or arbitration pursuant to Article 9 of the present Agreement, the arbitration provisions of this Article 13 shall not be involved in relation to such dispute, except where any award, decision or agreement rendered or concluded pursuant to conciliation or arbitration under the said Article 9 is not complied with.
