International commercial arbitration is a very specific form of dispute resolution which has a number of advantages to traditional litigation. Perhaps the most compelling is that an arbitral award is enforceable in over 150 countries around the world. When this is compared to a situation where a judgment from a national court is obtained, the judgment is usually only enforceable in the local jurisdiction of the court where the judgement was obtained. This is because there are a number of objections to jurisdiction that can be raised when a foreign court makes an award.
The legal basis for international commercial arbitration is the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 which has been signed by over 150 countries and implemented domestically by jurisdictions covering over 90 percent of the GDP of the world. For this reason, international commercial arbitration is a considered the leading method of dispute resolution where there is an international aspect to a dispute, particularly in the context of commercial disputes as many countries limit the scope of the application of the convention to disputes of a commercial nature.
From an Australian perspective, the international convention on commercial arbitration is in force in all of the top 15 of Australia’s international trading partners including:
People’s Republic of China
Republic of Korea (South Korea)
United States of America
United Kingdom of Great Britain and Northern Ireland
United Arab Emirates
For this reason, international commercial arbitration is now a powerful tool for allowing international commerce to flourish as it provides firms engaged in International trade the ability to enforce legal entitlements overseas. We also have access to an international network of lawyers that can assist with the enforcement of arbitral awards in the countries above. Please do not hesitate to contact us about representation or appointment of an arbitrator if you have questions about international commercial arbitration.