As economic cooperation has expanded, having an effective
mechanism to resolve disputes arising between member countries has become an
essential need. Therefore, since 1996, ASEAN has started drafting a Protocol on
Dispute Settlement Mechanism, and this Protocol was signed by ASEAN Economic Ministers
on November 20, 1996 in Manila (Philippines).
The dispute settlement mechanism of
ASEAN is built on the spirit of negotiation and mediation. At
any time, Member States which are parties to the dispute have the right to
choose forms of mediation. These forms may begin or end at any time. Only when
the procedure for mediation has ended, the complainant proceeded to bring
the matter to the Senior Economic Officials Meeting of ASEAN (SEOM). While the
dispute is in progress, if the parties to the dispute agree, mediation
procedures will continue to apply.
SEOM will set up a panel or, if possible, refer the matter to the
special rules and procedures team or additional for review. However, in
specific cases, if deemed necessary, SEOM may decide to resolve the dispute
amicably without having to appoint a panel.
SEOM will review the panel report during its discussion and give a
decision to the dispute within thirty (30) days from the date the panel
submitted the report. In exceptional cases, SEOM may have an additional ten
(10) days in adjudicating a dispute. SEOM representatives of Member States who
are parties to the dispute may be present If the consultation does not resolve
the dispute within sixty (60) days of the receipt of the request, the matter
will be referred to SEOM. during the discussion but may not participate in
judgments of SEOM. SEOM will adjudge on a majority basis.
Member States that are parties to the dispute may appeal the
judgments of SEOM to the ASEAN Economic Ministers (“AEM”) within thirty (30)
days. AEM must make a decision within thirty (30) days of the appeal. In
exceptional cases, AEM may have an additional ten (10) days to make a decision
on dispute resolution.
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