International Arbitration: New York Convention and Dispute Resolution

This research focuses on the New York Convention and its impact on international arbitration. It explores the advantages and drawbacks of this treaty in resolving disputes between countries. The research also discusses the principles and practice of international commercial arbitration and the role of the United Nations Commission of Trade Law.

Research Diary

Table of Contents
Research Aspect.........................................................................................................................3
Research Summary.....................................................................................................................4
Research Notes...........................................................................................................................6
Reference List............................................................................................................................8

Research Aspect
The international arbitration is a way of mitigating disputes between countries across
international borders. The international arbitration is the most common and useful means of
identifying potential disputes between different parties usually situated in various countries.
This system is accepted on both national and international terms being justified as well on
both terms and it is a general means of different way of resolving disputes (ADR). Disputes
may arise in time of commercial contracts between companies which lead to arbitration. In
order to tame these potential disputes, several clauses have been passed by the companies
which gives rise to arbitration (Born and Born, 2012). Usually, the companies intend to
arbitrate the disputes, in case disputes arise, instead of taking legal actions against each other.
The disputes can be solved by arbitral award provided by binding solutions as per the
arbitration. Generally, these disputes arise between companies working across international
borders resulting into effective implementation of international arbitration.
Recognition enforcement of foreign arbitral awards and referral by a court to arbitration are
the two basic action contemplated by the New York Convention. Article 1 includes The
recognition enforcement of foreign arbitral awards along with the rules and procedures to
such binding awards and enforce them in accordance is stated in Article 3. The second action
is implemented in Article 2 (3), which states that a contracting state’s court, if detained on the
basis of which the parties have created arbitration should follow them. The research work
includes the advantages of the New York Convention of the commercial treaty. The most
important advantage is maintaining confidentiality, providing the parties the right to choose
their judge; the arbitration process can be help out of the court. . The grounds are such as
incapacity of the parties, due processes, jurisdiction of the arbitral tribunal, invalidity of the
arbitration agreement and scope of arbitration agreement. This grounds help in the suspension
of the award in the state or the law under which the award was made. There are also two
other additional grounds which allows the court to refuse the recognition and enforcement of
an award to the groups. Those grounds are made in relation to public policies and arbitration.
The disputes usually potential in nature can be effectively dealt with the process of
arbitration. A binding solution is provided by the process of arbitration in order to solve the
disputes through the means of arbitral award. This award can be brought into force and can
be practiced internationally as per the conditions of the 1958 New York Convention on the

Recognition and Enforcement of Arbitral Awards. It is most commonly used and more than
140 countries have been formally consented on this way or process. The New York
Convention is generally intended by the private parties as this way of arbitration facilitates in
providing forum which is neutral as well as relatively confidential (Kronke et al., 2010). The
New York Convention of international arbitration also provides global arbitrators and
alongside, the enforcement of the award can be much easily done in various jurisdictions. The
New York Convention is an exceptional one and there is no other probable treaty which is in
force that the world could make sure about the international currency.
However, there are some drawbacks to the New Year Convention, which includes some
abnormalities in its implication. The domestic courts supervise the arbitral awards and their
needs by the parties in case of foreign member state’s disputes under the UNITED NATIONS
COMMISSION OF TRADE LAW rules. This leads to parties being deprived of their rights
and the arbitral awards in the domestic courts because of unfair judgements.
Research Summary
The implementation of the 1958 UN Convention on the Recognition and Enforcement of
foreign Arbitral Awards also known as the New York Convention will allow the members of
the other contracting states to settle down their disputes.
Margaret L Moses the Principles and Practice of International Commercial Arbitration 2nd
edn (2012) Cambridge University has helped me to understand the world of international
arbitration. The book has explained me the functioning of the arbitration. This also provides
the legal and regulatory framework for international arbitration, and the strategies that should
be followed along with the drawbacks that should be avoided. The principles of arbitration is
more clear to me because the author of the book has explained it by providing different
insights of the international arbitration works from different countries. The book has helped
to understand the different approaches applied to settle down the disputes between the
contracting countries.
Pieter Sanders, ‘Unity and Diversity in the Adoption of the Model Law, Arbitration
International’ Kluwer Law International 1995 Volume 11 Issue 1, pp. 1 - 38 explains how
the unity and diversity model has helped in explaining the International Arbitration and how
it can settle the disputes without creating any inequality among the countries. The book

includes different approaches of equality and diversity and how its implementation has
helped to resolve the disputes.
While conducting this research I primarily learnt about the disputes that may arise due to
commercial contracts across international borders and how these disputes are effectively dealt
with the process of arbitration. In regards to this, I found the New York Convention is an
inimitable treaty and there are no other treaties like this. It is the most commonly practiced
treaty among the private parties across the international borders as it provides a neutral as
well as confidential forum.
According to the adopted model of United Nations Commission of Trade Law on
International Commercial Arbitration in 2006, states various laws and regulations pertaining
to the accessibilities and limitations about which the companies should be aware of while
conducting business on international terms across the globe. The United Nations Commission
of Trade Law on International Commercial Arbitration is mainly divided into three parts
where the first part focuses on the general criteria of applying the Model Law. The second
part is based on the various explanatory notes of International Commercial Arbitration is
primarily based on the domestic perspective. It also includes the features of the Model Law
pertaining to the context. The study of the United Nations Commission of Trade Law on
International Commercial Arbitration helped me to meet the idea about the particular scope
of applicability of the Model Law and various relevant definitions regarding the rules and
regulations of interpreting, and many other aspects. The first part is further divided into many
chapters consisting of several articles and sections which comprises of all the necessary rules,
regulations, guidelines regarding international commercial arbitration. Second part of the
Model Law mainly focuses on the domestic aspect considering the inadequacy and disparity
in national laws which includes various special procedures, agreement, identification and
implementation of awards, creation of awards regarding improving Global Commercial
Arbitration.
Studying further to carry on the research, I have gathered knowledge about the various
principles of International Commercial Arbitration and how these principles can be
effectively implemented. In today’s world, the companies mainly follow the arbitration
process in order to curb down the potential disputes with the other influential companies in
other countries while conducting business all across the globe. I have learnt about the
possible legal framework that is to be maintained while following the process of arbitration

by various companies. There are laws, principles and regulations which are needed to be
followed in order to conduct business properly and effectively with the other businesses.
These laws, principles, regulations pertains to the arbitration process which the companies
undertake to curb down the potential disputes which may arise between companies situated in
different countries and having international relationship among each others.
Research Notes
The Recognition and Enforcement of Foreign Arbitral Awards also acknowledged as the New
York Convention is the verdict to allow members of other states that are contracting to
resolve their disputes through Arbitration and recognise and enforce Arbitral Awards where
domestic awards are not considered as well as required for appreciation and enforcement.
This decision by the New York Convention has created a series of advantages for the
international commercial aspects. Litigation also refers to the legal statement of settling
disputes before state courts. The disputes are settled in the local courts and regional courts.
The local courts consist of single judge for settling the dispute, and the regional courts consist
of three judges for settling complex disputes.
It is suggested that the arbitral system should be followed more than the litigation, as it has
been witnessed that the arbitrary process helps for settling down the disputes in a more
legalized way as compared to the litigation process. As per the consideration of the 1958 UN
Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York
Convention) as the most successful commercial treaty in the world is concerned it depends on
a few factors. These factors are acceptance of the procedure in all the member states’
domestic courts and their rightful conduction to the proceedings regarding arbitration as and
when required, the parties getting all the arbitral awards being awarded to them as per the
right decisions made by the arbitral judges. In litigation process there are some drawbacks
like the proceedings of state court in Germany should be settled down in Germany, which
means that the oral and written pleadings must be provided in Germany, and the translated
languages costs are much expensive. On the other hand, arbitration is considered to be a
confidential process. The decision taken by arbitral tribunal is easier to apply. Another
benefit of the arbitrary practice is that the groups are free to select members of the tribunal,
which is advantageous for the parties as they can choose the tribunals according to the cases.

It has been witnessed as one of the key factors deciding on the New York Convention being
the most successful treaty for international commerce is that the parties getting their right to
sought their disputes at the domestic courts of all the member states without facing denial.
Thus, it can be concluded that the disputes with the help of this method of resolving are more
fairly dealt with. The reason for which the convention has decided to decline the arbitral
awards are also beneficial for the private international law as they make sure there are fair
judgements of the case even in domestic courts of the associate states for foreign member
states affairs.
This research mainly focuses on the policy of arbitration undertaken by the companies while
conducting business on both national and international terms for the purpose of mitigating the
arising disputes. Through the research I came to know about the policy of arbitration is
followed by the companies to curb down the disputes instead of taking legal actions against
other influential companies. This also contribute in maintain a good relationship with the
other companies. As per the research, I found the policy of arbitration regarding International
Commercial Arbitration is more fruitful than taking legal actions because arbitration leads in
efficiently solving arising disputes along with maintaining the relationship with the others.
Taking legal actions may destroy the relationship with the other companies and therefore,
business will get hampered. Legal actions may not be a good solution for companies as
business cannot expand without proper support. But there are certain laws, principles and
regulations regarding following the procedure of arbitration. These laws, principles,
regulations are needed to be followed quite accurately by the companies while trying to
mitigate the disputes, keeping in mind the relation and the after-effect onto the businesses.

Reference List
Journal
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Them There, You Can Collect From Anywhere' (2011) 27 Arbitration International
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Journal
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Arbitration International
Hwang M, 'Agora:International Commercial Arbitration(2Nd Edition) By Gary B. Born'
(2015) 31 Arbitration International
Tweeddale A, 'Arbitration Under The Contracts (Rights Of Third Parties) Act 1999 And
Enforcement Of An Award' (2011) 27 Arbitration International
Walsh T, 'Agora: International Commercial Arbitration By Gary Born' (2010) 26 Arbitration
International
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