Advantages of Arbitration in International Trade

 

Basic Advantages of Arbitration  in Export and Import

 

In comparison to litigation, the basic advantages of arbitration are:

Advantages of Arbitration in International Trade1. Quickness: Definitely, arbitration is quicker than litigation. Process of arbitration can be completed as fast as the concerned parties'. desire. Under Arbitration Act, the arbitrators have to make the award within four months from the date of completion of all proceedings. Usually, arbitration is settled within a period of four months to one year.

2. Inexpensiveness: Total incidental expenditure in arbitration is always much lower than litigation. Arbitration fees is around 2% of the claim value or less in institutional arbitration.

3. Promotes Goodwill: As the arbitrator is chosen by both the parties, based on their faith and his competence, arbitration becomes a normal process of goodwill. Arbitration proceedings and its outcome do not disturb the existing friendly relations between the exporter and importer.

4. Choice of Appropriate Arbitrator: As the arbitrator is chosen by both the parties and name incorporated in the contract, who has the knowledge of customs and procedures of international trade, so separate expert witness for educating the judge does not arise.

5. Privacy: Arbitration proceedings are not open to public. Arbitrator's award is not published in any newspapers. This preserves privacy of the parties. So, trade secrets as well as disputes arising from the contracts do not become public.

 

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Comments


abi: I the undersigned being a lawyer was interested in knowing about the scope in export and import dispute resolution through Arbitration. So kindly guide me as I also intend to do a PHD in this field.

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