PCA Arbitration

1. Brief History of the PCA

2. Arbitration in General
3. Structure of the PCA
4. Activities at the PCA
5. Recent initiatives and Future Speculation

History
You have the privilege to find yourselves in a historic space: The Peace Palace,
founded as a Temple to Peace and purpose-built for the PCA in 1913 thanks to
significant funding by the idealistic philanthropist, Scottish-born, American
success story Andrew Carnegie. Since WWII the building houses not only the
PCA but the International Court of Justice, the UN's judicial body.
The PCA was created in 1899 at the First Hague Peace Conference on the
initiative of the Russian Tsar Nicholas II. A ride down history's memory lane
might lead us to raise our eyebrows collectively at the thought of this particular
Tsar and his future role as peacemaker!! Nicholas succeeded his father's throne
in 1894. Nicholas was 26, stubborn and elitist. That same year he married
Princess Alexandra of Hesse-Darmstadt, Queen Victoria's grand-daughter. It
was Nicholas' cousin Queen Wilhelmina of the Netherlands who convinced him
to strike a bold move and persuade his royal counterparts )(consider how
many he was related to!) to convene a Peace Conference in 1899 at The
Hague. The resulting 1899 Convention for the Pacific Settlement of
International Disputes set out the noble goal: “seeking the most objective
means of ensuring to all peoples the benefits of a real and lasting peace...”
Princess Alexandra was wildly autocratic, obsessed by power and was
instrumental in convincing Nicholas to resist ever-growing calls for increased
democracy within Russia. Nicholas required little persuasion: as a fervent
nationalist he decried those who favored western style democracy.
Alexandra was unpopular with the Russian elite, more so as evidence emerged
of her increasing influence over her husband. Her reliance on the radical
Orthodox priest Rasputin for mentoring in the widest sense of the word in
angered many, ultimately leading to Rasputin's assassination.
In late 1904, Japan launched a surprise attack on the Russian fleet at Port
Arthur on the Eastern front----Russia had completed the Trans-Siberian railway
but was desperate for a sea port. Casualties in the 1904-1905 Russian
Japanese war were staggering. At the final battle alone (The Battle of Mukden)
330,000 Russians faced off to 250,000 Japanese with casualties surmounting
100,000. Defeat in the war with Japan of 1904-5 seriously damaged Russian
prestige - and with it the esteem of the monarchy. President Teddy Roosevelt
served as a mediator between the victorious Japanese and the Russians. The
Peace Treaty resulted in a return of southern Manchuria to its rightful owner
China and Japanese control over Port Arthur and the important railway lines
leading to it.
Russia's losses on the Eastern front paled in comparison to the situation in St.
Petersburg. Workers inspired by their American counterparts forming unions
protested against unreasonable conditions. Four days of strikes on the part of
100s of thousands of workers culminated in a massacre that went down in
history as Bloody Sunday, the spark that lit the fires of the 1905 Revolution
masterminded by Leo Trotsky.
• You all have been reminded that law calls for a study of history whether
you are examining precedents or drafting legislation. In our concise
introduction to modern international arbitration, we should return the
hapless Nicholas to his place of glory, The Hague. Arbitration played a
prominent role in the 1899 Convention for the Pacific Settlement of
International Disputes.
Title IV. On International Arbitration

Entry into Force: 4 September 1900

His Majesty the Emperor of Germany, King of Prussia; [etc.]:

Animated by a strong desire to concert for the maintenance of the general

peace;

Resolved to second by their best efforts the friendly settlement of international

disputes;

Recognizing the solidarity which unites the members of the society of civilized
nations;

Desirous of extending the empire of law, and of strengthening the appreciation

of international justice;

Convinced that the permanent institution of a Court of Arbitration, accessible

to all, in the midst of the independent Powers, will contribute effectively to this
result;

Chapter I. On the System of Arbitration

Article 15

International arbitration has for its object the settlement of

differences between States by judges of their own choice,
and on the basis of respect for law.

Article 16
In questions of a legal nature, and especially in the
interpretation or application of International Conventions,
arbitration is recognized by the Signatory Powers as the
most effective, and at the same time the most equitable,
means of settling disputes which diplomacy has failed to
settle.

Chapter II. On the Permanent Court of Arbitration

Article 20

With the object of facilitating an immediate recourse to

arbitration for international differences, which it has not
been possible to settle by diplomacy, the Signatory Powers
undertake to organize a Permanent Court of Arbitration,
accessible at all times and operating, unless otherwise
stipulated by the parties, in accordance with the Rules of
Procedure inserted in the present Convention.

Arbitration in General

• Parties refer disputes to arbitrators for a final and binding decision

• Arbitral decisions are made according to law (choice of governing law
established by parties or at arbitrators discretion)
• Tribunal's are specially constituted
• arbitrators are chosen for their knowledge and experience
relevant to dispute (VB construction)
• parties have an active role to select arbitrators (the presiding
arbitrator is chosen by the other two!)
• neutral nationality of presiding arbitrators
• usually 3, sometimes 1 or 5
• fast track process is also available taking business and politcical
concerns into consideration
• Flexibility
• hearings anywhere in the world with the advantage of
neutral location or on-site arbitral proceedings (Costa Rica)
 • procedural timetable and features to suit parties and tribunal
• Confidential (unless parties agree otherwise, present day
examples include public policy cases in which parties want more
transparency and opt for less confidentiality)
• No appeal (parties do not expect to appeal as part of arbitral
process)

Structure of the PCA

The PCA is not a court but a permanent administrative framework for arbitral
tribunals

Three-part organization
• Administrative Council (Member States 110 in total)
• Members of the Court (Panel of Arbitrators)
• International Bureau (Secretariat)