| |
Recognition and enforcement of international arbitration
awards
INTRODUCTION
With the development of economy and technology, world trade
has expanded, and, as a result, the potential for more international
business disputes bas rose significantly. To resolve such
disputes, mainly there are two way to choose. One is litigation,
another is arbitration. It called international Commercial
Arbitration when such commercial dispute involves international
factors. Now many international commercial affairs are using
international commercial arbitration, as opposed to a national
court system, to resolve their international contractual disputes.
Arbitration is preferred because it offers the following benefits:
confidentiality; freedom to choose the arbitrators, the place
of arbitration, and the rules governing the arbitration; and
a flexible procedure which is usually more conducive to settlement
and less adversarial than litigation. Arbitration is completely
private, arbitrators' decisions are not subject to a substantive
review, and arbitrators are accountable solely to parties
to a dispute.
For arbitration to work in an international setting, a legal
framework was needed.
The 1923 Geneva Protocol on Arbitration Clauses and the 1927
Geneva Convention on the Execution of Foreign Arbitral Awards
were early attempts to establish this legal framework. Due
to the deficiencies of these attempts, the International Chamber
of Commerce ("ICC") proposed that the United Nations
draft an improved international convention. The United Nations'
involvement produced the 1958 New York Convention on the Recognition
and Enforcement of Foreign Arbitral Awards ("Convention"/"New
York Convention"). Signed by over one hundred countries,
including United States, the UK, and China, etc, it has become
"the most important Convention in the field of arbitration
and ... the cornerstone of current international commercial
arbitration." The Convention addressed two important
aspects of the enforcement of foreign arbitration, requiring,
first, the enforcement of foreign arbitral awards and, second,
the enforcement of agreements to arbitrate
|
