The European Commission has submitted initial negotiating texts on Rules of Procedure and a Code of Conduct for dispute settlement to the Trade Policy Committee, to be used in free trade agreement negotiations with Indonesia and, later, with the Philippines. The documents, presented on 6 July 2026, outline detailed procedural and ethical standards for arbitration panels.
The Rules of Procedure cover definitions, notifications by email (deemed delivered on the sending date), and the appointment of panellists by lot if sub-lists are not established or lack at least five individuals. An organisational meeting must be held within seven days of panel establishment. Written submissions are due within 20 days for the complaining party and 20 days thereafter for the party complained against. Hearings will be held in Brussels if the complaining party is the Philippines or Indonesia; otherwise, the location is left blank. The rules also address confidentiality, amicus curiae submissions (within ten days of panel establishment, maximum 15 pages), urgent case adjustments, translation and interpretation costs, and replacement procedures for non-compliant panellists.
The Code of Conduct requires panellists and mediators to be independent, impartial, and free from conflicts of interest. They must disclose any relevant interests before appointment and throughout proceedings, maintain confidentiality, and keep records of time and expenses.
The Commission intends to submit the text to Indonesia ahead of the next negotiation round; no date is fixed for the third round with the Philippines. The Trade Policy Committee, composed of member state representatives, will review the texts before they are formally tabled in negotiations.
EU and Indonesian/Philippine exporters will benefit from clear dispute resolution procedures, reducing uncertainty in trade relations. Legal professionals and arbitration specialists may see new opportunities. However, the strict timelines and confidentiality requirements could impose administrative burdens on smaller firms involved in disputes. The rules also strengthen the EU's negotiating position by establishing a predictable framework, potentially limiting flexibility for Indonesia and the Philippines in future disputes.
The Trade Policy Committee is expected to discuss the texts in upcoming meetings. Once agreed, the Commission will table them in the next negotiation rounds with Indonesia and, later, the Philippines. The European Parliament will be consulted on the final FTA texts, including the dispute settlement provisions.