Advantages and Challenges: A Case Study of International Arbitration in International Trade Relations

 

Introduction:

 

 

 

 

 

 

 

 

 

International arbitration is considered one of the most important means of dispute resolution in international trade relations. International arbitration provides an effective mechanism for resolving disputes between parties of different nationalities and cultures, using neutral and flexible arbitration procedures. The effectiveness of international arbitration relies on a set of advantages while simultaneously facing multiple challenges.

 

Advantages:

 

 

 

 

 

1. Confidentiality of Proceedings: International arbitration enjoys complete confidentiality of sessions and decisions, preserving the secrecy of sensitive commercial information.

 

 

 

 

 

 

2. Procedural Flexibility: Arbitration procedures can be tailored to the parties' needs, allowing for expedited processes and cost reduction.

3. Diversity of Experts: Parties can select specialized experts in the disputed field, ensuring friendliness and better understanding of the case.

4. Enforcement of Awards: The New York Convention on Arbitration enhances the enforcement of awards issued by international arbitration in member states, making it an effective mechanism for dispute resolution.

 

Challenges:

 

 

 

 

 

1. High Costs: The costs of international arbitration proceedings can be high, especially in cases of large and complex disputes.

 

 

 

 

 

 

2. Delays in Proceedings: Arbitration processes may take a long time, especially due to postponements and repeated appeals.

3. Enforcement Issues: Parties may face difficulties in enforcing awards issued by international arbitration in some countries.

4. Legal Balance Constraints: Parties may encounter challenges in ensuring a balance of arbitration rules between disputing parties.

 

Conclusion:

 

 

 

 

 

Considering international arbitration as a fundamental tool in international dispute resolution, parties must effectively address the associated challenges by selecting efficient procedures and appointing competent experts. It is important for international efforts to continue in promoting a culture of arbitration and streamlining procedures to ensure the more effective use of this mechanism in resolving international trade disputes.