Article XIX Modifications and Rectifications to Coverage

1. Notification of Proposed Modification

a)

for any proposed withdrawal of an entity from its annexes to Appendix I in exercise of its rights on the grounds that government control or influence over the entity's covered procurement has been effectively eliminated, evidence of such elimination; or

b)

for any other proposed modification, information as to the likely consequences of the change for the mutually agreed coverage provided for in this Agreement.

2. Objection to Notification

3. Consultations

a)

in the case of a notification under paragraph 1(a), in accordance with any indicative criteria adopted pursuant to paragraph 8(b), indicating the effective elimination of government control or influence over an entity's covered procurement; and

b)

in the case of a notification under paragraph 1(b), in accordance with any criteria adopted pursuant to paragraph 8(c), relating to the level of compensatory adjustments to be offered for modifications, with a view to maintaining a balance of rights and obligations and a comparable level of mutually agreed coverage provided in this Agreement.

4. Revised Modification

5. Implementation of Modifications

a)

no Party submits to the Committee a written objection to the proposed modification within 45 days from the date of circulation of the notification of the proposed modification under paragraph 1;

b)

all objecting Parties have notified the Committee that they withdraw their objections to the proposed modification; or

c)

150 days from the date of circulation of the notification of the proposed modification under paragraph 1 have elapsed, and the modifying Party has informed the Committee in writing of its intention to implement the modification.

6. Withdrawal of Substantially Equivalent Coverage

7. Arbitration Procedures to Facilitate Resolution of Objections

a)

Where no Party has invoked the arbitration procedures within the time-period:

(i)

notwithstanding paragraph 5(c), the proposed modification shall become effective where 130 days from the date of circulation of the notification of the proposed modification under paragraph 1 have elapsed, and the modifying Party has informed the Committee in writing of its intention to implement the modification; and

(ii)

no objecting Party may withdraw coverage pursuant to paragraph 6.

b)

Where a modifying Party or objecting Party has invoked the arbitration procedures:

(i)

notwithstanding paragraph 5(c), the proposed modification shall not become effective before the completion of the arbitration procedures;

(ii)

any objecting Party that intends to enforce a right to compensation, or to withdraw substantially equivalent coverage pursuant to paragraph 6, shall participate in the arbitration proceedings;

(iii)

a modifying Party should comply with the results of the arbitration procedures in making any modification effective pursuant to paragraph 5(c); and

(iv)

where a modifying Party does not comply with the results of the arbitration procedures in making any modification effective pursuant to paragraph 5(c), any objecting Party may withdraw substantially equivalent coverage pursuant to paragraph 6, provided that any such withdrawal is consistent with the result of the arbitration procedures.

8. Committee Responsibilities

a)

arbitration procedures to facilitate resolution of objections under paragraph 2;

b)

indicative criteria that demonstrate the effective elimination of government control or influence over an entity's covered procurement; and

c)

criteria for determining the level of compensatory adjustment to be offered for modifications made pursuant to paragraph 1(b) and of substantially equivalent coverage under paragraph 6.