With the global marketplace becoming ever more interconnected, international commercial arbitration has emerged as a prominent method for the resolution of transnational contractual disputes. However, it is apparent that international arbitration, despite its inherent merits, is frequently lambasted for being too slow, complex, and costly. And yet, these obstacles are more frequently the product of deliberate, albeit often misguided, decisions by the parties involved, rather than an inherent flaw in the system itself.
According to JAMS, a U.S. based dispute resolution provider, the keys to unlocking greater efficiency and cost-effectiveness in international commercial arbitration lie in the conscious choices made by stakeholders.
These observations underline the significance of three primary elements which, if adequately addressed, have the potential to drastically enhance the efficacy of international commercial arbitration:
- Appropriate selection of arbitrators: The choice of arbitrator(s) plays a pivotal role in the outcome of an arbitration process. Opting for experienced professionals well-versed in commercial law and the nuances of international contracts can expedite the process.
- Spurring early resolution through pre-arbitral negotiations: Encouraging negotiations and discussions before embarking into full-scale arbitration could potentially resolve matters at an early stage, thus saving both time and resources.
- Limiting document production during the process: An arbitration process can often get bogged down in a quagmire of document production. A judicious approach to document production can go a long way in ensuring speedier and more manageable arbitration proceedings.
Although the obstructions that beleaguer international commercial arbitration are noteworthy, they can be surmounted with a focused approach, informed decision-making, and the assistance of experienced professionals. Importantly, a majority of these changes can be enacted primarily through the conscious choices of the parties involved themselves.
In conclusion, international commercial arbitration is a robust tool for dispute resolution that can be made substantially more efficient and less expensive with the right strategies. Thus, the responsibility for change rests predominantly on the shoulders of those who engage in these arbitration procedures.