It must be said that international arbitration is just a mechanism for resolving international disputes. It is not the only one. But it has become a pretty trusted tool for resolving international disputes. Maybe it got locked in and displeased other mechanisms like mediation, conciliation (almost identical), direct negotiation, or disputes before national courts.
International arbitration must be considered a mechanism for resolving disputes; with that in mind, it means that a dispute already exists. In other words, it would not prevent future disputes and might cause the relationship between the parties to reach a point of no return. There are different ways more amicable than international arbitration, as is the case with direct negotiation between the parties or mediation, where a third independent party can help the two parties in a possible dispute reach an agreement regarding their positions in their relationship.
But sometimes, negotiations between the parties or mediation by a third, independent party might not go forward. That is, one of the parties does not agree to get into direct negotiations to reach an agreed settlement, or simply, in the mediation process, one of the parties just walks out. Negotiation and mediation have the advantage of solving disputes faster and cheaper. But bear in mind that one of the parties can simply walk out the door. But with international arbitration, things are not so simple.
As said before, to have an international arbitration, you need an arbitration agreement, so if you happen to have one, then there is the great advantage that parties cannot just walk out the door; in fact, that will be the worst attitude that one party can take on the whole subject of international arbitration. Once you agree to arbitration, you must solve the dispute through arbitration.
The above means that whenever a dispute arises with a request for arbitration (considering an arbitration agreement exists), the other party can simply not appear or not participate in the process. Most likely, the dispute will be resolved through arbitration. This calls for an element of continuance. The show must go on. And if you don’t appear, you are relinquishing your right to be heard, causing a detriment to your side to defend yourself properly, which will not be considered a violation of due process.
Another good idea for agreeing to international arbitration is the possibility of having a third neutral party; in that sense, depending on the amount at stake, you can choose to have a tribunal composed of three members or just one (never agree on an even number of arbitrators); such neutrality of the international tribunal means that the arbitral tribunal will and need to be impartial from the parties, this will give a guarantee that it will not sideline any of the parties involved in the dispute, as well it means that it will be independent, which means that the arbitral tribunal has no interest in helping the parties involved, since neither party has a sway on the members of the arbitral tribunal, however, if this is the case, that a member of the arbitral tribunal is not or does not appear to be independent and impartial, then there is the mechanism for replacing the member of the arbitral tribunal.
Another aspect, which is the prime aspect of international arbitration, is the possibility of enforcing the international arbitral award internationally. What does that mean? Well, it means that once the arbitral tribunal has reached a final decision, which typically is not subject to appeal, The award has a life of its own and can be subject to recognition and enforcement in the different parts of the world where one of the parties has assets. Much depends on whether the member states, in their national legislation, determine the steps to recognize and enforce an international agreement or, on the other side, whether the state parties agreed to the New York Convention of 1958. To date, there are 172 party members. Almost all of the world
So, to sum up, International arbitration has some advantages as a process that can go forward even when one of the parties decides to not show up or just walk out the door. As well, there is the possibility of having a neutral arbitral tribunal that guarantees independence and impartiality throughout the process, and finally, there is the possibility of having your international arbitral award recognized and enforced in different jurisdictions.
