1- We propose the establishment of a dispute settlement procedures (DS) based upon the WTO procedure. The following recommendations were suggested in reference to the arbitration characteristics: (a) the creation of a permanent entity with the intent of achieving uniformity in jurisprudence and a specialization; (b) the granting of a powers related to the interpretation of the juristic system of the FTAA (legality control); (c) the granting of powers to establish the application of sanctions in the case of non-compliance with the final decisions.

2- We propose the inclusion in the Agreement of a clause which clearly establishes the criteria to separate the competence of the FTAA DS systems and the regional and sub-regional existing integration structures. This clause should respect the following two principles: (a) the right of the Party States which are also members of such regional and sub-regional structures to choose by mutual accord the applicable entity; (b) the right of the Party States which are not part of such structures and have a legitimate interest in those disputes to have the DS system of the FTAA be the one that applies.

3- We propose, when implementing the DS system regarding with respect to the powers of the arbitration body, that a regulation be included with precautionary measures and special proceedings for the cases where the trade of perishable products and seasonal services is affected.

4- In those disputes originated by violations of the Agreement, individuals should have direct access to the DS system regardless of whether the State responsible for the individual’s defense takes up the action. The participation of individuals in litigation amongst the Party States or against them will require the existence of a legitimate, personal and direct interest and demonstrable damages which wil be pre-qualified by the DS entity.

5- We reiterate the V Forum’s recommendation in relation to the advantage of the ratification of the New York Convention on the Recognition and Enforcement of Foreign Arbitration Awards of 1958 and the Panama Convention of 1975, called Inter-American International Commercial Arbitration Convention. Furthermore, we recommend the ratification of the Montevideo Convention of 1979 on extraterritorial effectiveness of foreign judgments and arbitration awards (CIDIP-79).

6- In DS matters, we propose the coordination and harmonization of national legislation based upon the following principles: free selection, non-discrimination, minimum judicial intervention, procedural economy and confidentiality protection, using as reference the UN Commission for International Trade Law on Arbitration’s Model “Act” for Commercial and International Arbitration.

7- As already advised by the V Forum, the mediation, conciliation and arbitration originated in private trade disputes amongst individuals, must be conducted by the private sector. If there is no agreement in relation to the selection of the system, we suggest, in accordance with the Panama Convention, that the parties use the Inter-American Commercial Arbitration Commission. To such end, we recommend the creation and consolidation of institutional networks for DS in the private sector.