Apart from the fact that an international award (the final decision by an international arbitral tribunal) can be subject to recognition and enforcement in many jurisdictions around the globe, other nuances make international arbitration a trusted tool for resolving international disputes.
I know that the main reason is to have your final award recognized and enforced, which could be appealing if you are doing international transactions, investing in a foreign country, or even want to resolve a long-lasting dispute with another country. However, there are other good reasons to solve the conflict through international arbitration; one of those is the flexibility of the procedure, that, depending on the subject matter of the dispute, it can be confidential, that the arbitrators are really invested in the debate (or hopefully they are), and finally, the possibility to award damages in a more specialized and technical manner.
As to flexibility, it means that the procedural rules are aimed at making the dispute more efficient so the arbitrators can try to move swiftly to identify the main issues that the parties want to resolve, either the facts of the argument or the legal matters that are subject to the controversy, which will make the conflict go as fast as possible, eliminating what is essential from what is not. It goes without saying that arbitrators or the arbitral tribunal, in this respect, need to be conscious of the right of the parties to present their case fully. However, identifying the matters in dispute as soon as possible can make the case move faster to benefit both parties.
Also, such flexibility can be translated into the parties agreeing on a procedural calendar that could fit the dispute’s needs. Not so much as the needs of the parties, nor the need for complying with standard rules of procedure, it is said, that you can tailor suit your dispute, although to an extent, because you really need to negotiated with your counterparty. Also, into this element of flexibility is the possibility to choose an arbitral tribunal that is knowledgeable and capable of understanding the whole dispute, obviously, you need to select an arbitrator that has sufficient time to invest in your dispute.
Another advantage, which is more focused on commercial arbitrations and, to a lesser extent, investment arbitrations, is the possibility of having your international arbitration completely confidential. There can be sensible information that needs to be protected against competitors; therefore, agreeing to confidentiality might be a possible advantage since the parties to the dispute, that is, the arbitrators, the institution administering the international arbitration, the lawyers of the parties, as well as any other participant, like witnesses, can be obliged to agree that the whole dispute be subject to confidentiality and non-disclosure. So, any trade secrets, intellectual property, or any other type of sensible information can be kept behind closed doors.
Coming back to the possibility of choosing your arbitral tribunal, this flexibility also translates into the advantage of having the same members throughout the dispute, so your arbitrators will get acquainted with the parties, the subject matter of the dispute, as well as the facts, and that is gold. Or at least, such can be translated into gold.
Why is that? You want someone who is knowledgeable about the law, but you also want someone who has relevant technical knowledge of the industry or is open to acquiring it. You also want someone who has sufficient time to invest and get acquainted with the facts, someone who has a clear understanding of the dispute.
I cannot stress that enough. Having someone, either one or the three members of the arbitral tribunal, go through the facts is a big win for everyone in the dispute. Also, going into the technical matters. Having an arbitral tribunal that is technical as to the procedure but also as to the subject matter gives you the guarantee that the dispute will be solved in accordance with the law, and if there is time for compensation, you will be compensated adequately. Which requires more technical knowledge that goes beyond the law.
There you have it, some other reasons to resolve your international dispute under international arbitration, its flexibility that translates into having a procedure adapted to the dispute and not the dispute adapted to the procedure. The possibility to have a confidential procedure and technical knowledge by the arbitral tribunal, which translates into technical knowledge as to the law, the facts and the compensation.
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