Why your businesses need to think about arbitration

Most international trade contracts run smoothly. If you adopt tried and tested standard terms, and maintain communication with your international partners, your transaction should go well, and you can build strong relationships for the future.

But sometimes things go wrong. Misunderstandings can arise. Obstacles that are no-one’s fault can get in the way. And then you have to work out what is the best way of resolving the dispute.

Referring your dispute to the English courts is one way, but your international partner may object because they might be at a disadvantage there in terms of language and understanding the procedure. Equally, you might feel at a disadvantage if you have to go to the courts of the country where they are based. There’s also the issue of enforcing court judgments internationally, which is not always straightforward.

International arbitration, which is a process outside national court systems, allows parties to choose a neutral location for the resolution of their disputes. What’s more, you can choose a neutral procedure, and neutral arbitrators, so that neither side feels at a disadvantage. And there’s an international treaty called the New York Convention that allows you to enforce an arbitration award through national courts almost anywhere in the world.

The London Chamber of Arbitration and Mediation (LCAM) is one of the leading international arbitration institutions. We have ready-made procedures that are designed for neutral and cost-effective resolution of international disputes. We also have standard clauses that you can put in your contracts to allow you to refer disputes to arbitration; then we have experienced arbitrators who you can appoint to ensure that the process runs without a hitch. For more details visit our website at www.lcam.org.uk.?