Importance Of International Arbitration

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The expansion and globalisation of cross-border investment and trade has led to increased and ever more complex commercial relationships between businesses, investors and states. As, inevitably, some of those relationships break down, parties need to consider (preferably at the outset of the relationship) the best means of resolving any disputes which may arise. In many cases, that will be arbitration. Arbitration has been used for centuries, with Plato writing about arbitration amongst the ancient Greeks. In more modern times, arbitration became the standard method for resolving disputes in certain industry sectors (such as construction, commodities, shipping and insurance) where the arbitrators’ technical expertise was particularly valued.…show more content…
International arbitration can provide a neutral forum for dispute resolution. • Procedural flexibility: Arbitration rules are streamlined, flexible and far less complex than most national rules of civil procedure, making them better suited to parties from different jurisdictions. • Arbitrators with the appropriate experience: Arbitrators can be selected for their familiarity with relevant commercial practices, trade usages and legal structures, and their ability to apply different national laws and deal with comparative law issues. Here, in a nutshell, are a few of the features that have led to the prominence of arbitration in the international arena: However, arbitration is not right for every party in every situation. It might have drawbacks, depending upon a party’s particular circumstances and objectives. It is therefore necessary to make a considered decision in each case. This Guide is designed to help with that decision and, where appropriate, to assist in the drafting of arbitration provisions. Although an arbitration clause need not be complicated, as the source of the arbitrators’ mandate, it is…show more content…
. . . over the last 50 years or so, arbitration has been increasingly embraced by the international community, with many recognising its importance as the primary means of resolving complex, transnational commercial disputes • Party autonomy: The parties to an arbitration can shape their dispute resolution process by, for example, selecting the governing law, the place of arbitration, many aspects of the arbitral procedure and, of course, arbitrators whom they believe will ensure a fair hearing of their case. Arbitration is a private form of binding dispute resolution, conducted before an impartial tribunal, which emanates from the agreement of the parties but which is regulated and enforced by the state. The state requires the parties to honour their contractual obligation to arbitrate, provides for limited judicial supervision of arbitral proceedings and supports the enforcement of arbitral awards in a manner similar to that for national court judgments. Arbitrations are typically conducted by either one or three arbitrator(s), referred to in each case as the “tribunal”. The tribunal is the equivalent of a judge (or panel of judges) in a court

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