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Permanent Court of Arbitration

Presentation · January 2022

DOI: 10.13140/RG.2.2.31987.25128

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 Permanent Court of Arbitration

Author: FarazBaghbanno
LLM in Internationallaw
Allameh Tabataba’i University

History
The PCA was established by the Convention for the Pacific Settlement of International Disputes,
concluded at The Hague in 1899 during the first Hague Peace Conference. The Conference had been
convened at the initiative of Czar Nicolas II of Russia “with the object of seeking the most objective
means of ensuring to all peoples the benefits of a real and lasting peace, and above all, of limiting the
progressive development of existing armaments.”

Among the aims of the Conference had been the strengthening of systems of international dispute
resolution especially international arbitration. The delegates at the Conference were mindful that, during
the previous 100 years, there had been a number of successful international arbitrations, starting with the
“Jay Treaty” Mixed Commissions at the end of the 18th century, and reaching a pinnacle with the
Alabama arbitration in 1871-1872. In addition, the Institute de Droit International had adopted a code of
procedure for arbitration in 1875.

This movement toward arbitration as a means of international dispute resolution was continued in 1899,
and the most concrete achievement of the 1899 Conference was the establishment of the PCA as the first
global mechanism for the settlement of disputes between states. Article 16 of the 1899 Convention
recognized that “in questions of a legal nature, and especially in the interpretation or application of
International Conventions” arbitration is the “most effective, and at the same time the most equitable,
means of settling disputes which diplomacy has failed to settle. Is an international organization founded in
1899 and joined by the Islamic Republic of Iran in 1900

Structure of PCA

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The PCA has a three-part organizational structure consisting of an Administrative Council that oversees
its policies and budgets, a panel of independent potential arbitrators known as the Members of the Court,
and its Secretariat, known as the International Bureau, headed by the Secretary-General.
Administrative Council:
Contracting Parties’ diplomatic representatives accredited to The Netherlands comprise the
Administrative Council, under the chairmanship of the Netherlands Minister for Foreign Affairs. This
body, in consultation with the Secretary-General, shapes the policy of the organization. It provides
general guidance on the work of the PCA, and supervises its administration, budget and expenditure. The
Council operates under the Rules of Procedure of the Administrative Council of the Permanent Court of
Arbitration
The Administrative Council entrusts the financial supervision of the International Bureau to a Financial
Committee composed of three independent experts elected by the Administrative Council for three-year
terms. A Budget Committee exists and functions in parallel to the Financial Committee and is open to the
representatives of all Contracting Parties thereby enabling the full membership of the organization to give
early consideration to documents of a financial nature.
Members of the Court:
Members of the Court are potential arbitrators appointed by Contracting Parties. Each Contracting Party
state is entitled to nominate up to four persons of “known competency in questions of international law,
of the highest moral reputation and disposed to accept the duties of arbitrators” as “Members of the
Court.” Members of the Court are appointed for a term of six years, and their appointments can be
renewed
In addition to forming a panel of potential arbitrators, the Members of the Court from each Contracting
Party constitute a “national group,” which is entitled to nominate candidates for the election to the
International Court of Justice (article 4(1) of the Statute of the International Court of Justice). The
Members of the Court (along with the judges of the ICJ) are among a handful of groups entitled to
nominate candidates for the Nobel Peace Prize.
Parties to a dispute may, but are not obliged to, select arbitrators from the list of the Members of the
Court.
International Bureau:
The PCA Secretariat – the International Bureau consists of an experienced team of legal and
administrative staff of various nationalities. It is headed by its Secretary-General. The bureau provides
administrative support to tribunals and commissions, serving as the official channel of communications
and ensuring safe custody of documents. The International Bureau provides services such as financial
administration, logistical and technical support for meetings and hearings, travel arrangements, and
general secretarial and linguistic support. It also provides administrative support to tribunals or
commissions conducting PCA dispute settlement proceedings outside The Netherlands.
The International Bureau is available to provide information and advice to parties contemplating dispute
resolution, including states and nationals of states that are not parties to the Conventions.
The Permanent Court of Arbitration is an international organization that provides a wide range of services
for the peaceful settlement of international disputes, including disputes between governments, disputes
between governments and individuals, as well as disputes related to international organizations.

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Methods of resolving disputes in the Permanent Court of Arbitration

The Conventions of 1899 and 1907 allowed the Court to settle disputes through such efforts as:
1. Good offices
2. Mediation
3. Fact-finding commissions
4. Arbitration
5. Conciliation
In 1930 the Administrative Council of the Permanent Court of Arbitration also enabled the Court to settle
disputes through conciliation commissions.
It is briefly mentioned that the difference between arbitration and other methods goes back to the binding
nature of arbitration. While inquiry, conciliation, and mediation are entirely voluntary, and either party to
the dispute can always refrain from continuing the proceedings and refuse to execute the decisions, in
arbitration we see obligations to the plaintiffs. In this respect, arbitration has similarities to judicial
proceedings. However, there are differences between arbitration and judicial review. One of the important
differences goes back to the composition of the court. While the permanent judiciary does not allow
litigants to select judges (with the exception of a special judge), this issue is generally left to the
discretion of the parties to the dispute. Another difference is the flexibility of arbitration in terms of
arbitration issues. Judicial courts usually have a pre-determined procedure for their proceedings, while in
arbitration proceedings, litigants can reach an agreement in this regard. Existing arbitration rules are even
more flexible and give the arbitral tribunal and litigants broad discretion in determining the procedure.
While judicial hearings are usually public and the principle of openness of the trial is applied to them,
(except under special circumstances) Of course, this issue depends to a large extent on the will of the
plaintiffs.

Iran and the Permanent Court of Arbitration

Iranian delegates attended the two conferences in The Hague in 1899 and 1907. However, Iran is a party
only to the first convention and this convention has been applicable to our country since 1900. Of course,
this has not had any effect on our membership in the Court, because membership in any of the
conventions will entail membership in the Permanent Court of Arbitration.
With the establishment of the Iran-US Court of Appeals in 1982, the Islamic Republic of Iran took
advantage of the facilities of the Permanent Court of Arbitration and the litigation sessions of the first
years of the life of the Iran-US Court of Arbitration were held with the assistance of the Permanent Court
of Arbitration. The Secretary-General of the Permanent Court of Arbitration is currently in charge of
appointing the Deputy Chief Justice of Iran and the United States, who has the task of appointing and
deciding on the arbitrators' injuries.

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 Messrs. Dr. Jamshid Mumtaz (2006), Dr. Jamal Seifi (2006), Dr. Abbas Ali Kadkhodai (2006) and Abbas
Ali Rahimi Isfahani (2006) also form the National Group of Iran, which is also a member of the Court.
Professor Jamshid Mumtaz is also a member of a special expert group that has been formed according to
the arbitrary rules of arbitration governing disputes related to natural resources and the environment.

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