1. Subject to Article 1702(3) (Pre-existing Dispute exception), a Party, and its persons, are prohibited from initiating or participating in consultations or in Proceedings, whether as a Complaining Party, Consulting Party, Intervenor, Appellant or person, if:
(a) the Party has failed to ensure that both monetary penalty and Tariff Costs enforcement mechanisms referred to in Article 1701(4) (enforcement of Tariff Costs awards and monetary penalties) are in place and 18 months have elapsed since the Effective Date, until the Party complies with these obligations;
(b) the Party has failed to comply with Article 1707.2(4) (requirement to replenish Standby) or 1707.2(5) (requirement to file new Standby before expiry), until the Party complies with these obligations;
(c) a Compliance Panel has determined that the Party has not brought itself into compliance with this Agreement and 180 days have elapsed since the date on which the Compliance Report was issued, until the Party complies with this Agreement notwithstanding that the Party may have paid the monetary penalty or Operational Costs ordered by the Compliance Panel, or that the Party has also had benefits suspended or retaliatory measures imposed against it pursuant to Article 1709(3); or
(d) the Party has failed to pay the monetary penalty as required by Article 1707.2(1);
(e) the Party has failed to pay Tariff Costs as required by Article 1707.2(6); or
(f) the Party has failed to pay Operational Costs ordered against it by a Panel pursuant to Article 1706(3)(f) or by a Compliance Panel pursuant to Article 1707(11)(c), or by an Appellate Panel pursuant to Article 1706.1(4)(b), within 60 days of the date on which the Panel Report, Compliance Panel report or Appellate Report, as the case may be, was issued, until the Party pays such Costs.
2. Where
(a) the Complaint Recipient is a Party that has implemented the enforcement mechanism for monetary penalties referred to in Article 1701(4)(b)(i) (Court Enforcement), or
(b) the Party against which an order for Tariff Costs has been made is a Party that has implemented the enforcement mechanism for Tariff Costs referred to in Article 1701(4)(a) (Court Enforcement)
notwithstanding paragraphs 1(d) and (e), and notwithstanding that the required time for payment of the monetary penalty or Tariff Costs has passed, the prohibition from initiating or participating in consultations or a Proceeding mentioned in paragraph 1 shall not take effect until the Party in whose favour the order was made has taken such registration, filing or other action as is required by the legislation and administrative practice of the Party against whom the order was made to commence the process of enforcing the monetary penalty or tariff costs order in the same manner as an order against the Crown, or as an order for costs against the Crown, as the case may be, in
that Party’s superior court and taken such further action as is available in that court to enforce the order.
3. While the prohibition pursuant to paragraph 1 is in effect, ongoing consultations or Proceedings initiated by the Party shall be suspended until the Party complies with the obligations it has failed to comply with under paragraph 1
4. For greater certainty, a person to government proceeding initiated under article 1711 shall not be suspended if initiated prior to the determination that the Party of the complaining person is in breach of the obligations referenced in paragraph 1.
5. A Party that has been prohibited from initiating or participating in consultations or a Proceeding because it has failed to comply with the obligations referenced in Article 1707.3(1)(c), (d), (e) or (f) may, at any time, request the Secretariat to reconvene the Presiding Body that originally determined the Party’s non-compliance or that ordered the monetary penalty, Operational Costs or Tariff Costs, as the case may be, for the Presiding Body to determine whether the Party has brought itself into compliance, and if it has, to lift the prohibition.