international arbititration

8/13/2019 International Arbititration

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I N T E R N A T I O N A L

A R B I T R A T I O N

By

Manmeet Singh Meet

1MBA IB,UBS

Source : wikipedia


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Topics already Covered

Meaning

Features of IA

Difference between DA and IA Advantages of IA

MBA IB,UBSSource : wikipedia

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Topics to be covered

Neutrality and Enforceability of Arbitration

International Commercial Arbitration

Institutes and Associations International Investment Arbitration

MBA IB,UBSSource : wikipedia

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Neutrality and Enforceability of

Arbitration Awards

The ability to resolve disputes in a neutral forum and the enforceability of binding

decisions are often cited as the main advantages of international arbitration over

the resolution of disputes in domestic courts.

The principal instrument governing the enforcement of commercial international

arbitration agreements and awards is the United Nations Convention on

Recognition and Enforcement of Foreign Arbitral Awards of 1958. The New York Convention was drafted under the auspices of the United Nations

and has been ratified by more than 140 countries, including most major countries

involved in significant international trade and economic transactions.

The New York Convention requires the states that have ratified it to recognize and

enforce international arbitration agreements and foreign arbitral awards issued in

other contracting states, subject to certain limited exceptions.

These provisions of the New York Convention, together with the large number of

contracting states, has created an international legal regime that significantly

favours the enforcement of international arbitration agreements.

4MBA IB,UBSSource : wikipedia


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In a practical Sense

It means that the international award originating in a country that isa party to the New York Convention may be enforced in any othercountrythat is also a signatory, as if that award were actuallyrendered by the domestic courts of that country.

Example :-

Assume that parties from countries A and B have agreed to resolvetheir disputes in country C, and all three countries are parties to theNew York Convention.

This will mean that even though the arbitration will take place incountry C, the resulting award can be enforced in countries A or B, as ifit were a court decision rendered in the domestic courts of thatcountry.



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Contd.

The parties to international contracts can decide to site their disputes in athird, neutral country, knowing that the eventual award can be easilyenforced in any country that is a signatory to the New York Convention,which has been ratified by a significant majority of commercial nations

Exceptions like Iraq (not having ratified the New York Convention , cannot beassumed to give effect to arbitration decisions rendered in other countries).

An international award has substantially greater executory (legal) force than adomestic court decision.

Under the New York Convention, if a party to arbitration commences legalproceedings in breach of an arbitration agreement against another

contracting party, the court is obligated to stay the proceedings. Chapter 2of the Federal Arbitration Act sets forth the statutory basis for anAmerican court to issue a stay in connection with contracts falling withinthe ambit of the New York Convention.



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International Commercial Arbitration

The resolution of disputes under international commercial contracts is

widely conducted under the auspices of several major international

institutions and rule making bodies.

The most significant are the

International Chamber of Commerce (ICC) JAMS International

International Centre for Dispute Resolution (ICDR)

International branch of the American Arbitration Association

The London Court of International Arbitration (LCIA),

The Hong Kong International Arbitration Centre, and

the Singapore International Arbitration Centre (SIAC).

Specialist ADR bodies also exist, such as

The World Intellectual Property Organisation (WIPO), which has an arbitration

and mediation centre and a panel of international neutrals specialising in

intellectual property and technology related disputes. 7MBA IB,UBSSource : wikipedia


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Contd.

A number of arbitral institutions have adopted the UNCITRAL Rulesfor use in international cases.

The most salient feature of the rules of the ICC is its use of the"terms of reference." The terms of reference is a summary of theclaims and issues in dispute and the particulars of the procedure,

and it is prepared by the tribunal and signed by the parties near thebeginning of the proceedings.

Recent development

The Swiss Chambers of Commerce of Industry of Basel, Berne, Geneva,have adopted a new set of Swiss Rules of Commercial Mediation thatare designed to integrate fully with the Swiss Rules of InternationalArbitration that were previously adopted by these chambers toharmonize international arbitration and mediation proceedings acrossSwitzerland.



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Institutes and Associations

International Arbitration Institute (IAI)

The Association for International Arbitration

(AIA)

Atlanta International Arbitration Society

(ATLas)



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International Arbitration Institute

(IAI)

The International Arbitration Institute, headed

by Emmanuel Gaillard, was created in 2001

under the auspices of the CFA to promoteexchanges and transparency in the

international commercial arbitration

community.



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The Association for International

Arbitration (AIA)

A non-profit organization, founded at Paris in 2001 byJohan Billiet. The Association for InternationalArbitration has an increasing number of membersamong arbitrators and mediators of international

backgrounds. Aim

To facilitating arbitration, mediation and general forms ofdispute resolution internationally.

The AIA has developed into an organization dealing in

the private international law field to meet the needs ofthe fast-growing evolution of dispute resolution withinthe international community.



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Contd.

AIA provides information, training and educationalactivities to expand the promotion of arbitration andADR globally by means of securing partnerships withvarious organizations and parties to get involved in the

life of the association. The association constantly works to develop

partnerships in the international realm and to providethe international community of arbitrators and ADRprofessionals with continuous exposure to the latest

international developments, activities andopportunities in the field. AIA continually encouragesthe participation and contribution of its members inthe pursuit of the associations goals.



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Atlanta International Arbitration

Society (ATLas) Atlanta, as host to the third-largest concentration of Fortune 500

company headquarters in the United States (economic capital ofthe Southeast) is sited as one of the most arbitration-friendly statesin the nation, has become a centre for international arbitration.

Georgia took an early lead in enacting an international arbitration-

friendly state statute in 1988, becoming one of the first jurisdictionsto adopt substantial portions of the 1985 UNCITRAL Model Law onInternational Commercial Arbitration.

It composed of scholars, judges, lawyers, business leaders,arbitrators, and other professionals who specialize in internationallaw and arbitration, is an organization that focuses on educating,

counselling, and guiding the international legal community aboutarbitrations in Atlanta.



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International Investment Arbitration

The legal protection of Foreign Direct Investment isguaranteed by a network of more than 2750 BilateralInvestment Treaties (BITs), Multilateral InvestmentTreaties, most notably the Energy Charter Treaty and

number of Free Trade Agreements containing chapteron investment protection, such as NAFTA.

The majority of these International InvestmentAgreement provides foreign investors with asubstantive legal protection and direct means to

redress against states for breaches of such treaties,usually before the International Centre for theSettlement of Investment Disputes (ICSID).



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Thank you


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