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If a dispute between the Government of the United States and the Government of Palau cannot be resolved within 90 days of written notification in the manner provided in Section 422, either party to the dispute may refer it to arbitration in accordance with Section 424.

Section 424

Should a dispute be referred to arbitration as provided for in Section 423, an arbitration board shall be established for the purpose of hearing the dispute and rendering a decision which shall be binding upon the two parties to the dispute unless the two parties mutually agree that the decision shall be advisory. Arbitration shall occur according to the following terms:

(a) An arbitration board shall consist of a Chairman and two other members, each of whom shall be a citizen of a party to the dispute and each of the two parties to the dispute shall appoint one member to the arbitration board. If either party to the dispute does not fulfill the appointment requirements of this Section within 30 days of referral of the dispute to arbitration pursuant to Section 423, its member on the arbitration board shall be selected from its own standing list by the other party to the dispute. Each Government shall maintain a standing list of 10 candidates. The parties to the dispute shall jointly appoint a chairman within 15 days after selection of the other members of the arbitration board. Failing agreement on a chairman, the chairman shall be chosen by lot from the standing lists of the parties to the dispute within 5 days after such failure.

(b) The arbitration board shall have jurisdiction to hear and render its final determination on all disputes arising exclusively under Articles I, II, III, IV and VI of Title One, Title Two, Title Four and their related agreements.

(c) Each member of the arbitration board shall have one vote. Each decision of the arbitration board shall be reached by majority vote.

(d) In determining any legal issue, the arbitration board may have reference to international law and, in such reference, shall apply as guidelines the provisions set forth in Article 38 of the Statute of the International Court of Justice.

(e) The arbitration board shall adopt such rules for its proceedings as it may deem appropriate and necessary, but such rules shall not contravene the provisions of this Compact. Unless the parties provide otherwise by mutual agreement, the arbitration board shall endeavor to render its decision within 30 days after the conclusion of arguments. The arbitration board shall make findings of fact and conclusions of law and its members may issue dissenting or individual opinions. Except as may be otherwise decided by the arbitration board, one-half of all costs of the arbitration shall be borne by the Government of the United States and the remainder shall be borne by the Government of Palau.

Section 461

Article VI
Definition of Terms

For the purpose of this Compact the following terms shall have the following meanings:

(a) "Trust Territory of the Pacific Islands" means the area established in the Trusteeship Agreement consisting of the_administrative districts of Kosrae, Yap, Palau, Ponape, the Marshall Islands and Truk as described in Title One, Trust Territory Code, Section 1, in force on January 1, 1979. This term does not include the area of the Northern Mariana Islands.

(b) "Trusteeship Agreement" means the agreement setting forth the terms of trusteeship for the Trust Territory of the Pacific Islands, approved by the Security Council of the United Nations April 2, 1947, and by the United States July 18, 1947, entered into force July 18, 1947, 61 Stat. 3301, T.I.A.S. 1665, 8 U.N.T.S. 189.

(c) “Palau” is used in a geographic sense and includes the land and water areas to the outer limits of the territorial sea and the air space above such areas as now or hereafter recognized by the Government of the United States consistent with the Compact and its related agreements.

(d) "Government of Palau" means the Government established and organized by the Constitution of Palau including all the political subdivisions and entities comprising that Government.

(e) "Habitual Residence" means a place of general abode or a principal, actual dwelling place of a continuing or lasting nature; provided, however, that this term shall not apply to the residence of any person who entered the United States for the

purpose of full time studies as long as such person_maintains that status, or who has been physically present in the United States or Palau for less than one year, or who is a dependent of a resident representative, as described in Section 152. (f) For the purposes of Article IV of Title One of this Compact:

(1) "Actual Residence" means physical presence in Palau during eighty-five percent of the period of residency required by Section 141(a)(3); and

(2) "Certificate of Actual Residence" means a certificate issued to a naturalized citizen by the Government which has naturalized him stating that the citizen has complied with the actual residence requirement of Section 141(a)(3).

VI. CHAPTER 15 OF THE UNITED STATES-CANADA FREE

TRADE AGREEMENT

Chapter Fifteen

Temporary Entry for Business Persons

Article 1501: General Principle

The provisions of this Chapter reflect the special trading relationship between the Parties, the desirability of facilitating temporary entry on a reciprocal basis and of establishing transparent criteria and procedures for temporary entry, and the need to ensure border security and protect indigenous labour and permanent employ

ment.

Article 1502: Obligations

1. The Parties shall provide, in accordance with Annex 1502.1, for the temporary entry of business persons who are otherwise qualified for entry under applicable law relating to public health and safety and national security.

2. Each Party shall publish its laws, regulations, and procedures relating to the provisions of this Chapter and provide to the other Party such explanatory materials as may be reasonably necessary to enable the other Party and its business persons to become acquainted with them.

3. Any fees for processing applications for temporary entry of business persons shall be limited in amount to the approximate cost of services related thereto.

4. Data collected and maintained by a Party respecting the granting of temporary entry to business persons under this Chapter shall be made available to the other Party in conformity with applicable law.

5. The application and enforcement of measures governing the granting of temporary entry to business persons shall be accomplished expeditiously so as to avoid unduly impairing or delaying the conduct of trade in goods or services, or of investment activities, under this Agreement.

Article 1503: Consultation

The Parties shall establish a procedure, which shall involve the participation of immigration officials of both Parties, for consultation at least once a year respecting:

a) the implementation of this Chapter; and

b) the development of measures for the purpose of further facilitating temporary entry of business persons on a reciprocal basis and the development of amendments and additions to Annex 1502.1.

Article 1504: Dispute Settlement

1. Subject to paragraph 2, a Party may invoke the provisions of Chapter Eighteen with respect to any matter governed by this Chapter.

2. A Party may not invoke the provisions of Article 1806 or 1807 of this Agreement with respect to the denial of a business person's request for temporary entry or a matter under paragraph 5 of Article 1502 unless:

a) the matter involves a pattern of practice; and

b) available administrative remedies have been exhausted with respect to the particular matter involving a business person's request for temporary entry, provided that such remedies shall be deemed to be exhausted if a final decision in the matter has not been issued within one year of the institution of administrative proceedings and the failure to issue a decision is not attributable to delay caused by the business person.

Article 1505: Relationship to other Chapters

No provision of any other Chapter of this Agreement shall be construed as imposing obligations upon the Parties with respect to the Parties' immigration measures. Article 1506: Definitions

For purposes of this Chapter,

business person means a citizen of a Party who is engaged in the trade of goods or services or in investment activities; and

temporary entry means entry without the intent to establish permanent residence.

Annex 1502.1

Temporary Entry for Business Persons

United States of America

A. Business Visitors

1. A business person seeking temporary entry into the United States of America for purposes set forth in Schedule 1, who otherwise meets existing requirements under section 101(a)(15)(B) of the Immigration and Nationality Act, including but not limited to requirements regarding the source of remuneration, shall be granted entry upon presentation of proof of Canadian citizenship and documentation demonstrating that the business person is engaged in one of the occupations or professions set forth in Schedule 1 and describing the purpose of entry.

2. A business person engaged in an occupation or profession other than those listed in Schedule 1 shall be granted temporary entry under section 101(a)(15)(B) of the Immigration and Nationality Act if the business person meets existing requirements for entry.

3. The United States of America shall not require, as a condition for temporary entry under paragraph 1 or 2, prior approval procedures, petitions, labour certification tests, or other procedures of similar effect.

B. Traders and Investors

4. A business person seeking temporary entry into the United States of America to carry on substantial trade in goods or services, in a capacity that is supervisory or executive or involves essential skills, principally between the United States of America and Canada, or solely to develop and direct the operations of an enterprise in which the business person has invested, or is actively in the process of investing, a substantial amount of capital, shall be granted entry under section 101(a)(15)(E) of the Immigration and Nationality Act, and be provided confirming documentation, if the business person meets existing requirements for visa issuance and for entry. 5. The United States of America shall not require, as a condition for temporary entry under paragraph 4, labour certification tests or other procedures of similar effect.

C. Professionals

6. A business person seeking temporary entry into the United States of America to engage in business activities at a professional level who meets existing requirements under section 214(e) of the Immigration and Nationality Act shall be granted entry, and be provided confirming documentation, upon presentation of proof of Canadian citizenship and documentation demonstrating that the business person is engaged in one of the professions set forth in Schedule 2 and describing the purpose of entry. 7. The United States of America shall not require, as a condition for temporary entry under paragraph 6, prior approval procedures, petitions, labour certification tests, or other procedures of similar effect.

D. Intra-Company Transferees

8. A business person seeking temporary entry into the United States of America as an intra-company transferee shall be granted entry under section 101(a)(15)(L) of the Immigration and Nationality Act, and be provided confirming documentation, if the business person:

a) immediately preceding the time of application for admission has been employed continuously for one year by a firm or corporation or other legal entity or an affiliate or subsidiary thereof;

b) is seeking temporary entry in order to continue to render services to the same employer or a subsidiary or affiliate thereof in a capacity that is managerial, executive, or involves specialized knowledge; and

c) meets existing requirements for entry.

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