Join the PCA Legal Counsel Roster – Opportunities Await

A common question aspiring professionals ask is how to dip their toes into the fascinating world of international arbitration. There are multiple paths to gain experience, including pursuing a specialized LL.M., publishing and presenting your thoughts on international arbitration, seeking mentorships, interning at arbitration institutions, and—the gold standard in the industry—networking. Additionally, there are other possibilities, such as serving as legal counsel for arbitration institutions.

The Permanent Court of Arbitration (PCA) currently has an open call for individuals interested in joining the PCA as legal counsel.

Legal Counsel positions at the International Bureau of the Permanent Court of Arbitration open periodically. Qualified candidates may submit applications at any time for consideration when vacancies arise. This roster serves as a pool of potential applicants, ready for when positions become available. The primary method of recruitment for Legal Counsel vacancies will be through this roster system.

The Permanent Court of Arbitration (PCA) has issued a call for applications to join their Legal Counsel Roster. This initiative provides an opportunity for qualified legal professionals to be considered for future positions within the organization. By joining the roster, candidates express their interest and availability for potential Legal Counsel roles at the PCA’s International Bureau.

Key points about the PCA’s Legal Counsel Roster:

  • Open application process: Interested candidates can submit their applications at any time.
  • Ongoing consideration: Applications are kept on file and reviewed when vacancies arise.
  • Primary recruitment method: The roster system is the main channel for filling Legal Counsel positions.
  • Periodic openings: While positions are not always immediately available, they open up periodically.

This approach allows the PCA to maintain a pool of potential candidates, ensuring they can quickly fill positions with qualified professionals when the need arises. Interested legal experts are encouraged to submit their applications to be part of this prestigious roster.

I hope you can make it!

The First ISDS Arbitration Between Mexico and China

Foreign Direct Investment (FDI) arbitration is a crucial mechanism in international economic law, designed to protect foreign investors and promote cross-border investment. This process allows foreign investors to seek redress against host states for alleged violations of international investment agreements. This is typically made under so-called investment arbitration, or ISDS.

Key aspects of FDI arbitration include:

  • Investor-State Dispute Settlement (ISDS): This is the primary mechanism used in FDI arbitration, allowing investors to directly sue host states.
  • Bilateral Investment Treaties (BITs): These agreements between two countries provide the legal framework for FDI protection and arbitration procedures.
  • Arbitration forums: Common venues include the International Centre for Settlement of Investment Disputes (ICSID) and the United Nations Commission on International Trade Law (UNCITRAL).
  • Applicable law: Disputes are typically resolved based on the provisions of the relevant BIT, national laws, and principles of international law.
  • Remedies: Arbitration tribunals can award monetary compensation to investors but usually cannot order states to change their laws or policies.

FDI arbitration aims to create a more secure environment for international investment by providing investors with a neutral forum for dispute resolution. However, it has faced criticism for potentially limiting states’ regulatory powers and favoring corporate interests over public policy concerns.

Mexico and China signed a BIT for the reciprocal protection of foreign direct investment back in 2008.

In accordance with a note by El Pais.

The Mexican government recently took a significant step by cancelling lithium mining permits that Bacanora Lithium, a Chinese-owned company, had held for over a decade. This decision, however, has not deterred the company from pursuing its interests. Bacanora, a subsidiary of the Chinese giant Ganfeng Lithium, intends to challenge this decision through the Mexican legal system and investment arbitration.

The El Pais note also notes that the Bacanora’s history in Mexico dates back to 2011, when it began operations in the state of Sonora. The company, which was originally British before being acquired by Ganfeng Lithium, secured 50-year permits for lithium exploration and extraction. At the time of obtaining these permits, the presence of lithium in the area was not confirmed, but geological indicators suggested high potential. Between 2011 and 2014, Bacanora conducted an extensive exploration program, drilling numerous test holes to assess the lithium deposits. Their efforts were rewarded with the discovery of an estimated 8.8 million tons of lithium carbonate equivalent, a finding that significantly bolstered the project’s viability. This discovery prompted Bacanora to construct a pilot plant, demonstrating their capability to extract and produce lithium, a critical component in the manufacturing of electric vehicle batteries. Building on this success, the company had ambitious plans to scale up operations with the construction of a large-scale production facility. This proposed facility, with an estimated cost of $800 million, was intended to establish Bacanora as a major player in the global lithium market, potentially transforming Mexico into a significant lithium producer on the world stage.

Now, after the cancellation of the lithium mining permits and what seems to be the lack of redress in Mexican courts, Bacanora has started investment arbitration proceedings against Mexico. The dispute will be decided under the Mexico-UUK BIT and Mexico-CChina BIT; the procedural rules will be the ICSID and ICSID Arbitration Rules 2002. The arbitrator appointed by the claimant is Donald Francis Donovan, and from the respondent (Mexico) is Pierre Mayer.

Impact of Mexico’s Judicial Reform on Foreign Investment

The recent overhaul of Mexico’s Federal Judicial System has sparked debates about its potential impact on foreign investment in the country. This reform, initiated by President Andrés Manuel López Obrador’s administration, aims to address corruption and inefficiency within the judicial branch. However, it has also raised concerns among international investors and business communities.

Key aspects of the reform include:

  • Restructuring of the Federal Judiciary Council
  • Changes in the appointment process for judges
  • Implementation of new anti-corruption measures
  • Modifications to the judicial career system

While these changes are intended to strengthen the rule of law in Mexico—at least according to the ruling party, former President López Obrador, and current President Claudia Sheinbaum—some critics argue that they may inadvertently create uncertainty for foreign investors. The reform’s impact on contract enforcement, dispute resolution, and overall legal stability are particularly important considerations for international businesses operating in or considering entry into the Mexican market.

As the implementation of this judicial overhaul progresses, it will be crucial to monitor its effects on four main aspects:

  • Foreign direct investment (FDI) flows: The amount of money entering Mexico serves as a measure of foreign investors’ trust.
  • Investor confidence in the Mexican legal system: While difficult to measure, the World Justice Project provides some indication by assessing the rule of law in each country. However, its methodology might be contested due to its subjective nature.
  • International trade agreements and partnerships: This element is crucial, as Mexico has a wide web of trade agreements with various blocks. Two notable examples are the USMCA, which will be subject to revision, and the Europe-Mexico Trade Agreement.
  • The overall business climate in Mexico: This can be measured by various indexes, such as Moody’s.

Understanding the nuances of this reform and its potential consequences is essential for both policymakers and investors as they navigate Mexico’s evolving legal and economic landscape.

Currently, there’s no clear understanding of how the judicial system overhaul will impact Mexico’s overall economic climate. Some preventive steps include implementing commercial arbitration agreements, not only for international transactions but also for national ones, regardless of whether they have an international component.

Even with the federal judicial system overhaul, it appears that laws guaranteeing the protection of foreign investment in Mexico will remain untouched. Mexico will continue to be a party to ICSID (the International Centre for Settlement of Investment Disputes), along with numerous Bilateral Investment Treaties (BITs) signed with countries worldwide, including the European and North American blocks, as well as other highly industrialized countries like China.

This means that despite changes in Mexico’s federal judicial system, foreign investors will still be protected—not only against changes in laws but also against government actions, whether from the legislative, executive, or even judicial branches.

In a future post, we’ll review how FDI is protected against judicial decisions—a situation that has already occurred due to alleged acts of corruption and profound disregard for the rule of law.

Exploring the Willem C. Vis International Commercial Arbitration Moot

The Willem C. Vis International Commercial Arbitration Moot, often simply referred to as the “Vis Moot,” is a prestigious annual competition that brings together law students from around the world. Named after Willem Cornelis Vis, a renowned expert in international commercial transactions and dispute resolution, this moot court competition simulates a real-life international commercial arbitration case with substance and procedure issues.

To recall, international commercial arbitration is a method of resolving disputes between businesses from different countries without resorting to national court systems. It offers a neutral, flexible, and confidential process for settling international business conflicts. The Vis Moot provides students with practical experience in this field, allowing them to argue complex legal issues before arbitral tribunals composed of seasoned arbitrators from across the world.

In the academic world, the Vis Moot serves as a unique platform for learning and networking. It challenges students to develop their research, writing, and oral advocacy skills while working on a complex problem involving international sales law and arbitration rules. The competition fosters a deep understanding of the United Nations Convention on Contracts for the International Sale of Goods (CISG) and various institutional arbitration rules; this year’s rules are the Arbitration Rules of the Finland Chamber of Commerce.

Moreover, the Vis Moot creates a global community of future legal professionals. It brings together students, academics, and practitioners from diverse legal backgrounds, promoting cross-cultural understanding and professional relationships that often last well beyond the competition itself. This international exposure is invaluable for students aspiring to careers in international law and arbitration.

The phrase “after the Moot is always the Moot” reflects the cyclical nature of the competition and its enduring impact on participants. As one year’s competition concludes, preparations for the next begin, with students and coaches eagerly anticipating the challenges and opportunities that lie ahead in the world of international commercial arbitration.

Jump into this wonderful experience, either in Vienna or Hong Kong, and all the pre-moots taking place across the world.

If you want to look into this 32nd years’ problem click here.

Making international arbitration financially accessible

I know that I have written much about the advantages of resolving an international dispute through international arbitration. However, this view might be a little bit biased, given that I tend to practice international arbitration, so the temptation is to promote something as awesome, specially if you do that for a living.

However, international arbitration is not a walk in the park, and may have some disadvantages that are quite hard to overcome, one of those issues is the possible financial burdens parties will endure, especially in cases when one of the parties is reticent to participate into the arbitration proceedings, some times, you just need big pockets, and you might not have enough liquidity to finance the whole dispute through international arbitration, it is not free, and also, when hiring your lawyers, they will charge.

I know that there are quite a bit of statistics that point towards the fact that the majority of the costs of international arbitration are on the law firms that advise the parties; however, if the breach of an international dispute causes a lack of liquidity, then it becomes burdensome to finance the whole arbitration, not only the law firm providing with their advise but as well the payment of the fees by the arbitral tribunal and the institution, in case an institution is appointment.

There are, of course, efforts that seek to make international arbitration less of a financial burden, but when you have parties from different parts of the world with currencies that tend to be undervalued against the dollar or euro, the financial burden is higher. In other words, there is the possibility that international arbitration is not for everyone, especially those with a lack of financial assets.

Whether as it may, due to the above possible financial stress, the ICC came up with a possible solution, known as the Expedited Procedures Provisions, These procedure provisions will run from March 1, 2017 onwards. If you agreed to an ICC arbitration rule on or after March 1, 2017, then you are up to a good start to apply the expedited procedure provisions, which are part of the Rules of Arbitration issued by the ICC.

What is important is that such provisions will take precedence over any term of the arbitration agreement by virtue of Article 30 of the ICC Rules of Arbitration and Appendix VI, but what does that mean?

If you agree to the ICC rules of arbitration, then the parties agree automatically to the application of the said rules, with that they agree to the said Article 30 and the Expedited Procedure Rules under Appendix VI, which are called in conjunction as “Expedited Procedure Provisions”.

Article 30 provides that the Expedited Procedure Rules will apply in two cases depending on the date of the conclusion of the arbitral award and the amount of the dispute: for the first cases, if the amount is lower than US$2,000,000.00 and if the arbitration agreement was concluded on or after March 1, 2017 and before January 1, 2021. And for the second case, If the arbitration was concluded on or after January 1, 2021 and the amount of the dispute is US$3,000,000.00.

The amount of the dispute will be subject to review by the ICC Secretariat after the Answer to the Request of Arbitration under Article 5 of the Rules, therefore, the expedited procedure will apply if the parties to the dispute selected not to opt out to the expedited procedure, the amount is lower than US$2,000,000 or US$3,000,000 respectively.

What is the consequence of this? For once, the arbitral tribunal will be by a sole arbitrator, despite the fact that the arbitral clause or agreement says three, under this both parties will agree on the nomination of a sole arbitrator, and if the parties do not agree on the nomination of the sole arbitrator it will be the ICC Court that will appoint the arbitrator at the shortest time as possible or ASAP.

Also, article 23 of the ICC rules will not apply, which refer to the terms of reference of international arbitration where the time limits and different elements of the arbitration procedure are agreed by the parties; instead, what will apply is article 3 of appendix VI, under which no new claims shall be allowed unless the arbitral tribunal admits such new claims, The case management conference will be within 15 days from the date the file was given to the arbitral tribunal, or to agree on shorter written submissions and shorter evidence produced by the parties. Also, it opens the possibility to resolve the dispute without having hearings or witness examinations.

Also, another consequence is that the arbitral award should be rendered within six months after the case management conference, as well the fees of the arbitral tribunal will be lower than in a normal arbitration.

I know that arbitration is not perfect, and one of the possible drawbacks of international arbitration is its accessibility from a financial standpoint. However, much work has been done in order to resolve this issue. ICC is not the only one who has come up with practical solutions; other institutions have come up with a set of similar rules that provide for more expedient procedures and much less expensive procedures.

International arbitration is making its way to be more accessible for the wider business community. And that is a great step forward.

Some other reasons to resolve your international dispute through international arbitration

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.

Thank you for reading. If you want to continue reflecting on matters about international arbitration, I will invite you to subscribe.

Is international arbitration a good idea to solve international disputes?

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.

The arbitration agreement: the distinct forms to agree to international arbitration

International arbitration can take place due to the existence of an agreement to resolve disputes under arbitration. In that sense, international arbitration is a voluntary procedure, that is, in order to resolve a dispute under international arbitration, first there should be the will of the parties agreeing to solving their dispute under arbitration. I know, it sounds a little bit circular.

But what it entails is that, first, you need an arbitration agreement, and second, this will allow you to resolve your dispute under arbitration, whether it is national or international. In order to have a valid international arbitration procedure, there is forcibly the need to have a valid arbitration agreement, either as an arbitration clause under an agreement, or as a stand alone agreement apart from the main transaction or transactions.

What does that mean? Or why is it so important?

The cornerstone of international agreements resides precisely in the consensual relationship between the parties. It should be inequivocal about their willingness to resort to arbitration; if there are some problems regarding this will, then the arbitral award may be set aside, not recognized, or rendered simply null and void due to some invalidity or because one of the parties was incapable of agreeing to arbitration. For commercial arbitration and to some extent to investment arbitrations outside ICSID the New York Convention is applicable (obviously if the state parties where enforcement is sought are part of the New York Convention)

Article V(1)(a) of the New York Convention establishes that:

Article V

  1. Recognition and enforcement of the award may be refused, at the
    request of the party against whom it is invoked, only if that party furnishes
    to the competent authority where the recognition and enforcement is sought,
    proof that:
    (a) The parties to the agreement referred to in article II were, under
    the law applicable to them, under some incapacity, or the said agreement is
    not valid
    under the law to which the parties have subjected it or, failing any
    indication thereon, under the law of the country where the award was made;
    or

If you are a corporate lawyer or you are representing one of the parties take due consideration of the capacity of the parties or any possible outcomes where the agreement to arbitrate might be invalid. Since this can cause future problems to your clients.

As said before your arbitration agreement can be expressed as an arbitration clause or as a stand alone agreement to solve a dispute.

Arbitration clauses are typically agreed upon within the main contract and take place before the dispute occurs. The idea behind these arbitration clauses is that they allow the parties to express an inequivocal willingness to resolve their dispute under international arbitration if such dispute arises out of or in connection with the said contract. And as well, to avoid resolving their disputes under the courts of the jurisdiction applicable to the contract.

Another way an arbitration agreement is expressed is in a stand-alone arbitration agreement. It is a whole contract to resolve the dispute under international arbitration; this type of agreement is usually agreed upon by the parties once the dispute arises. So, the dispute is already known, however, reaching an agreement when the parties already have an ongoing dispute can be hard to obtain, but it is possible.

A different type is that of investment arbitration. Under this approach there is an offer to arbitrate, what it means is that under Bilateral or Multilateral Treaties for the promotion and protection of foreign investments, the state parties to the treaty agree to refer the dispute to investment arbitration. So, the states put an offer to the foreign investors of the contracting state, so they can have access to resolve their dispute under investment arbitration, and the receiving state of the investment will agree to solve the dispute under investment arbitration.

A possible fourth type is that of forum prorrogatum which has been dealt quite extensively in international disputes between states, and to a lesser extent in commercial and investment arbitrations. But in this case, it is possible for resolving a dispute under international arbitration even if there is no agreement to arbitrate. This takes place when the claimant seeks to resolve the dispute before an arbitral tribunal, and the respondent continues to resolve the dispute under arbitration, without establishing that the agreement to arbitrate is inexistent. It is a possibility as well.

So there you have it. We started with two possible ways to agree to arbitration, in order to find other possible two. That is an offer to arbitrate in investment arbitratoin, and forum prorrogatum. In essence what should be clear is that there is an inequivocal agreement by the parties to resolve their dispute under arbitration.

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The recipe for an international arbitration stew

There is a saying that in order to have chicken stew, you need the chicken. In international arbitration, in order to have an international arbitration stew, you need the chicken, in the form of the arbitration agreement.

You think that it is natural; how on earth could it be possible to have an international arbitration without an agreement to resolve the dispute under arbitration? But the thing is not that simple, even if it is simple enough. We will discuss this later in this part, because you might be surprised that some arbitration agreements are so badly written that they become pathological, and render useless, hence you cannot bring your possible dispute under international arbitration.

But this is not all; after you have your arbitration clause, when there is an actual problem between the parties, such a problem should in fact be a dispute. And a definition of a dispute should be a direct opposition of what one party wants against the direct opposition of what the other party wants. If there is no direct opposition between the parties as to what they want of their legal relationship then you might not have a dispute.

If there is no dispute, then you cannot bring your possible claim to arbitration. Maybe you will have started your international arbitration, but at the end of the day, it might not be admissible since there is no dispute that can be assessed by the arbitral tribunal.

After there is, in fact, a dispute between the parties, there will be a need to commence international arbitration. Depending on the parties and the tribunals chosen, this can have different requirements, but in essence, the requirements are almost all the same. You write in a brief statement of facts and law, the existence of an arbitration clause, and if you wish as well the appointment of the arbitrator, or the mechanism for appointing an arbitrator. And the payment of the administrative fees. Very important. Otherwise your international arbitration might not walk.

Then another component of an international arbitration is the arbitral proceedings, in other words, how the international arbitration will be conducted and the rules for the conduct of the arbitral tribunal, which might differ depending on the institutions involved; however, the parties involved in the dispute could make arrangements as to the timetable regarding the presentation of memoranda, the presentation of evidence, the dates of the hearings, as well as the length of them, etcetera. Flexibility is the way in international arbitration.

Once the arbitral proceedings have finished, then there is the time for having a final decision by the arbitral tribunal, in that sense, you will have your award. Depending on the type of international arbitration, you can have interlocutory awards, or partial awards. Is typical for international commercial arbitrations that you have just one award where it is decided the elements of jurisdiction, responsibility and damages. In international arbitrations regarding foreign investment disputes as well disputes between countries you have typically three steps, with three awards, the first one, the award that determines the existence of the jurisdiction by the tribunal. Once that is finished then comes a new order by the tribunal inviting the parties to make their memoranda regarding the breach of an international obligation, then there is the award on that matter, and finally there is a decision as to the financial side of the dispute, which implies a third award.

Finally, you have the stage for the recognition and enforcement of the international arbitral award, which has a different new adventure by its own.

All-in-all, the broad elements of an international arbitration can be summarized in six elements, as proposed by Redfern and Hunter, but can be reduced to five:

  • arbitration agreement
  • existence of a dispute
  • commencement of arbitration and the arbitral proceedings
  • award or awards by the arbitral tribunal
  • recognition and enforcement of an international arbitral award

I hope that with this list, you can have a broad vision of what the elements of an international arbitration are. This list can help you navigate the stages of the proceedings and to understand what comes next, so you can anticipate the possible challenges faced into the future once you are involved in an international arbitration.

Each of the steps signaled above are a world by themselves. If you would like to continue uncovering the elements for the recipe of an international arbitration stew, I invite you to subscribe.

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The architecture of international arbitration

International arbitration is a mechanism for resolving international disputes. And even if the definition is quite straightforward, it entails something more subtle, the wide array of international rules, treaties, and conventions.

At the end of the day, you can ask yourself, how is it possible that parties in different parts of the world could resolve a dispute? Nowadays, we take for granted all the architecture that allows international disputes to be resolved at the international level. And this architecture is the one responsible for making international arbitration a reality that long ago was just a dream.

In a previous post, I talked about arbitration being a trusted mechanism that has been around for quite some time. In such a post, there was this conflation between international arbitration without separating matters of public international law and private international law, and this is intentional. In the early days, countries could resolve their disputes through international arbitration; this was done through a special agreement (compromis) or through

And this is true, however at the early beginnings there was not an institutional framework, it was all done by bilateral agreements on an ad hoc basis. There were a lack of rules and lack of an established practice, this all then started with early developments like the rules for arbitration by the Institut de Droit International, which guidelines for administering arbitrations, but this guidelines could be followed or not. Then afterwards in 1899 there was the adoption of the Hague Convention for the Resolution of International Disputes, which created the Permanent Court of Arbitration. And things started to get more institutional.

However, there was still something missing, if international arbitration was serving the purposes of resolving disputes between countries, could that as well be extended to parties in different countries? And the answer was that it was possible, now the issue was to know how.

How it all came together? by a slow process and a little bit of luck I guess. This architecture for international arbitration comprises, in my point of view, a series of instruments and institutions that form part of this whole complex system of international arbitration.

Here it is the list, which implies as well the architecture for international arbitration:

  • The 1899 Hague Convention for the Pacific Settlement of International Disputes
  • The Permanent Court of Arbitration;
  • The 1907 Hague Convention for the Pacific Settlement of International Disputes
  • The creation of the League of Nations;
  • The creation of the International Chamber of Commerce;
  • the adoption of the Geneva Protocol on Arbitration Clauses of 1923, under the League of Nations, an initiative of the ICC (this was for the recognition of arbitration clauses);
  • The Geneva Convention for the recognition of Foreign Arbitral Awards of 1927;
  • the creation of the United Nations;
  • the New York Convention of 1958;
  • the creation of the World Bank;
  • the creation of the International Centre for Settlement of Investment Disputes (ICSID) being an organization of the World Bank (1965), as well as the adoption of its rules for the settlement of foreign investment disputes;
  • the creation of UNCTAD (United Nations Commission on Trade and Development);
  • the creation of UNCITRAL (United Nations Commission of International Trade Law);
  • the adoption of the UNCITRAL Arbitration Rules adopted in 1976;
  • the adoption of the UNCITRAL Model Law in 1985

As you can see, the architecture for international arbitration is quite interesting, there is this conflation of public and private international law, which as well brings the question whether international arbitration should be on a league of its own, the type of international arbitrations that bring this type of question are foreign investment disputes, where to draw the line between private and public international law. When the dispute stop being a commercial one, and started to be a dispute regarding the interpretation and implementation of an international treaty.

The above architecture is not exhaustive, and it leaves out all the national arbitration laws adopted by each country that allow for the recognition and enforcement of foreign arbitration clauses and foreign arbitral awards, as well as all the arbitral institutions located in different parts of the world that are capable of administering international arbitrations, as well as law firms, think tanks and universities dedicated to the study and practice of international arbitration.

Hopefully, the above list helps you get a snapshot of the architecture of international arbitration.

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