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Research on the Effectiveness of International Commercial Arbitration Agreements

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DOI: 10.23977/law.2023.021230 | Downloads: 20 | Views: 439

Author(s)

Zhang Xibing 1

Affiliation(s)

1 School of Law, Xi'an Peihua University, Xi'an, Shaanxi, China

Corresponding Author

Zhang Xibing

ABSTRACT

The issue of the enforceability of international commercial arbitration agreements plays a crucial role in resolving cross-border disputes. However, concerns about the effectiveness and enforceability of these agreements have garnered attention from international traders and business participants. This study aims to explore the legal framework and practical significance of international commercial arbitration agreements, focusing on the challenges and potential solutions related to their enforceability. International commercial arbitration agreements are widely used in international trade and investment to facilitate the expeditious resolution of disputes and ensure the protection of parties' rights. However, these agreements may face challenges due to differences in laws and judicial systems among different countries. One major challenge is the issue of enforceability. If an agreement is not fully recognized and enforced, the parties will lose the opportunity to utilize arbitration procedures to resolve their disputes. To address this issue, a series of international conventions have been adopted worldwide, such as the New York Convention and the UNCITRAL Model Law on International Commercial Arbitration. These conventions aim to ensure the effectiveness and enforceability of arbitration agreements. Additionally, domestic judicial institutions have gradually strengthened their recognition and enforcement of such agreements through case law. However, obstacles affecting the effectiveness of arbitration agreements still exist. One problem is the divergence in understanding and agreement on the terms of the arbitration agreement between the parties. Clear provisions regarding arbitration procedures should be explicitly agreed upon when entering into the agreement to avoid subsequent disputes. Additionally, parties should choose an appropriate arbitration institution to ensure the effectiveness and enforceability of the arbitration. Another challenge is the interpretation and enforcement of arbitration agreements by domestic judicial institutions. Sometimes, domestic courts may interfere in the arbitration process or refuse to recognize and enforce arbitration agreements. To address this issue, some countries are taking measures to strengthen the recognition and enforcement of arbitration agreements. For example, some countries are establishing specialized commercial courts or setting up arbitration institutions and implementing training and educational measures to enhance judges' and legal practitioners' understanding and enforcement capabilities regarding arbitration agreements. Regarding the issue of enforceability of international commercial arbitration agreements, we have put forward suggestions and potential reform measures. These include strengthening international collaboration mechanisms, promoting the development of more unified and explicit legal provisions, and improving the professionalism and efficiency of arbitration institutions. In conclusion, the issue of the enforceability of international commercial arbitration agreements is crucial for resolving cross-border disputes. By strengthening the recognition and enforcement of international conventions and domestic legal systems, as well as driving relevant reforms, we can enhance the enforceability of these agreements and promote the development of international trade and investment. 

KEYWORDS

International commercial arbitration; arbitration agreement; enforceability; cross-border disputes

CITE THIS PAPER

Zhang Xibing, Research on the Effectiveness of International Commercial Arbitration Agreements. Science of Law Journal (2023) Vol. 2: 211-218. DOI: http://dx.doi.org/DOI: 10.23977/law.2023.021230.

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