International arbitration
An alternative dispute resolution method for cross-border commercial disputes using private arbitrators whose award is binding and enforceable.
International arbitration is a dispute resolution method for cross-border commercial disputes where parties submit their disagreement to one or more private arbitrators rather than state courts. The arbitral award is final and binding.
The leading international arbitration institutions are:
- ICC (Paris): most widely used for international trade
- LCIA (London Court of International Arbitration)
- SCC (Stockholm Chamber of Commerce): popular for disputes involving Russia
- SIAC (Singapore International Arbitration Centre): the benchmark in Asia
- HKIAC (Hong Kong International Arbitration Centre)
Enforcement of international arbitral awards is guaranteed by the 1958 New York Convention, ratified by over 170 countries. This convention obliges national courts to recognise and enforce foreign awards.
Advantages over state courts include neutrality (neither party litigates in the other's courts), arbitrator specialisation, confidentiality, and facilitated international enforcement.
The choice of arbitration is made through an arbitration clause inserted in the commercial contract, or through a submission agreement concluded after the dispute has arisen.