Trans Pacific Partnership Agreement - Dispute Settlement Mechanism

Trans Pacific Partnership. -  Dispute Settlement Chapter


Dispute resolution mechanisms provide recourse to an impartial panel of experts, allowing governments to effectively settle issues between them. This ensures predictability and fairness in resolving these disputes. It is that predictability and fairness in the trading system that provides Canadian companies with the ability and confidence to expand abroad.

Trade disputes often harm both Parties’ interests as they prevent the efficient flow of goods and services and can cost millions of dollars in lost opportunities. Resolving trade disputes quickly and effectively is therefore important. The TPP Agreement includes an impartial, rules-based dispute settlement mechanism that will ensure that the Agreement can be enforced and that disputes between Parties can be resolved.

Technical Summary of Negotiated Outcomes: Dispute Settlement Chapter

Expeditious settlement of disputes modelled on the World Trade Organization (WTO) dispute settlement system which is well-known and understood.
This provides these processes with stability and certainty, a crucial hallmark of an effective free trade agreement.
Provides for alternative methods to settle a dispute in its early stages such as conciliation and mediation.
Contains provisions to expedite disputes, particularly for perishable goods.
Provides for a panel of trade experts to hear a case.
Ensures that panelists have the appropriate expertise to effectively decide disputes in specialized areas: environment, financial services, labour and anti-corruption.
Contains remedy provisions that provide options that a complaining Party can use to encourage compliance.
While complaining Parties will have recourse to trade retaliation, the TPP also provides for a cooperative mechanism.
The cooperative mechanism enables the creation of a monetary fund. The fund is then jointly leveraged for initiatives that will improve compliance and eventually resolve the issue.
Contains provisions that allow for hearings that are accessible to the public and that permit panels to consider submissions by non-governmental persons