SCHOOL OF LAW

Alternative Dispute settlement (ADR)

Term paper on: ADR in the International and Regional Level

By: Ghion Ambaw

ID SSHR/963/12

Submitted To; Mr. Kibrom

 Submission Date 22/04/2016 E.C

Introduction
Alternative Dispute Resolution (ADR) is a means of resolving conflicts other than through traditional
court litigation that is gaining popularity in international disputes, particularly in complicated and cross-
border situations, due to the complexities and costs of traditional legal systems. The need of Alternative
Dispute Resolution (ADR) in international disputes has grown in recent years. With the globalization of
trade and commerce has come an increase in the amount of cross-border disputes, creating a greater need
for effective procedures to resolve these issues outside of traditional court systems. The purpose of this
term paper is to analys the role of ADR at the international and regional levels, with an emphasis on its
scope, parties engaged, and the regulatory framework that governs ADR at the global and regional levels.
It will further analyze specific methods to ADR in regional contexts, with a focus on Africa and
Europe. In addition, the paper will look into Ethiopia's approach to international ADR, providing
a description of the country's policies and practices in this area. This paper tries to provide a full
knowledge of the significance of ADR in the international and regional contexts, as well as its
usefulness in resolving cross-border disputes, by evaluating these elements.
 The Need for ADR in International disputes
Alternative Dispute Resolution (ADR) is crucial in international disputes due to their complexity
and varying legal systems and cultural norms. 1 Traditional litigation can be time-consuming and
costly, but ADR offers a flexible, cost-effective approach.2 Different forums, customary
mechanisms, international treaties, international tribunals, and the WTO panel are used to
resolve disputes. The increasing demand for ADR is driven by factors such as the effectiveness
of these mechanisms in different disputes.3

The increasing demand for Alternative Dispute Resolution (ADR) in international disputes is
influenced by several factors. Firstly, the Crucial Role of Preserving Relationships in
International Dispute Resolution. In international disputes, preserving relationships between
parties often holds paramount importance. ADR mechanisms can foster dialogue and cooperation
between parties, facilitating mutually agreeable settlements. 4 In essence, ADR is not just about
resolving conflicts; it's about nurturing relationships. By prioritizing dialogue, understanding,
and cooperation, these methods offer a win-win scenario, ensuring not just solutions to present
disputes, but also the laying of a foundation for a more peaceful and productive future on the
international stage.5In terms of citizens' extraterritorial relationships, Globalization enhances
citizen-non-citizen interactions, necessitating government protection and effective dispute
settlement methods like ADR to prevent conflicts and ensure recognition and enforceability of
outcomes.6

Secondly, the Advantages of ADR in Addressing the Complexities of International Disputes.

International disputes often involve multiple parties, diverse legal systems, and complex factual
issues. ADR mechanisms can effectively navigate these complexities, providing a more tailored
and efficient resolution process.7The Intricacies of international disputes demand adaptable and
1
International Council for Commercial Arbitration (ICCA), “Dispute Resolution in International
Trade, 2023: Annual Report” (ICC Publishing, 2023), p. 12
2
World Bank, “Alternative Dispute Resolution in Investment Treaties: A Practitioner's Guide” (World
Bank, 2020), p. 5
3
Stephen F. Neale, “The Rise of ADR in International Commercial Law” (2017) 54 Journal of World Trade Law
4
Gary N. Born, “ADR and the Preservation of Relationships in International Commercial Disputes” (1997) 81
American Journal of International Law
5
Catherine Rogers, “The Healing Power of ADR: Rethinking Approaches to Transnational Dispute Resolution”
(2014) 26 Georgetown International Law Review
6
Andrea Bianchi, “ADR and the Protection of Transnational Persons in the Era of Globalization” (2008) 33
European Journal of International Law
7
Supra note 1, p 15.
efficient solutions. By embracing ADR mechanisms, parties can navigate the complexities of
transboundary clashes, paving the way for tailored, cost-effective, and mutually agreeable
resolutions.8

Thirdly, cutting Costs and Shortening Timelines . International litigation can be costly and time-
consuming, often taking years to resolve. Alternative dispute resolution (ADR) offers a cost-
effective and time-bound solution, saving time and money while potentially preserving
relationships and fostering mutual understanding. This strategic advantage is not just an option. 9

Fourthly, domestic Courts' Limitations. Domestic courts have authority only over individuals' and public
interests. In international issues, state courts may lack jurisdiction, making enforcement problematic. In
the event of a conflict of interest, parties may choose an alternate method of justice known as alternative
Dispute Resolution (ADR).10

Fifthly, empowering Access to Justice. The pursuit of justice, a cornerstone of any civilized society, can
stumble upon roadblocks both within national borders and across international frontiers. This reality has
fueled the rise of Alternative Dispute Resolution (ADR), a movement reshaping how we approach
conflict resolution. Access to justice is often denied at both national and international levels, leading to
parties seeking alternative dispute resolution (ADR). The ADR movement has gained global attention,
with European courts recognizing its importance in facilitating access to justice and developing a
European Code of Conduct.11

Sixthly, Limitations of International Courts and the UN Charter's Influence . Internationally courts, such
as the International Court of Justice (ICJ), the Criminal Court of Justice (CCJ), and the World
Trade Organization's Dispute Settlement Body, have constraints, such as the identity of parties,
subject matters, and the worldwide community's rights to bring their cases before them. 12 ADR
seeks to bridge these gaps and address increasingly complicated disagreements. Traditional
conflict resolution mechanisms, such as negotiation, mediation, conciliation, arbitration, and
regional agreements, are outlined in the UN Charter. When required, the Security Council may
request a settlement. Alternative Dispute Resolution (ADR) is recognized as a first choice before
turning to the International Court of Justice, assuring easy enforceability and quality solutions. 13

8
Supra note 3, p, 23.
9
Supra note 2, p, 8
10
United Nations Commission on International Trade Law (UNCITRAL), “UNCTRAL Model Law on Cross-
Border Insolvency, with Guide to Enactment” (UNCITRAL, 2019), p. 3.
11
UNCITRAL Working Group II on Investor-State Dispute Settlement: Report of the Forty-Seventh Session
(Vienna, 23 to 27 September 2019)” (A/CN.9/WG.II/WP.165, 2019), p. 8.

12
Statute of the International Court of Justice, Article 34.

13
UN Charter, Chapter VI, Articles 33-38.
 Scope And Parties to International ADR
International Arbitration and Mediation (ADR) is a method used to resolve disputes between
multiple parties, including multinational corporations, states, international organizations, and
individuals engaged in cross-border transactions or activities. 14 Arbitration and Dispute
Resolution (ADR) is a process that can be used to resolve disputes between parties. ADR
methods include arbitration, mediation, conciliation, and negotiation to accommodate the
complexities of these disputes. In the context of international relations, ADR has been used to
resolve a wide range of disputes, including territorial disputes, intellectual property disputes, and
claims to land based on ethnicity.

In the field of international relations, disputes are inevitable due to the diversification of human
relationships, the need for smooth diplomatic relationships with neighboring countries, and the
prevalence of border disputes.15 Extra territorial crimes are also a concern for peace and stability
in the international community, as they involve cooperation among nations to ensure criminals
do not get shelter in a nation other than where the crime was committed and are duly
prosecuted.16The capacity and identity of parties who can be parties before international ADR is
another issue that needs to be addressed. This question is similar to the controversy over the
subjects of international law, whether sovereign nations and international organizations only or
individual citizens and private institutes as well.17

Research has shown that current dispute resolution procedures are inadequate for alleviating
trademark controversies over Internet domain names. The International Ad Hoc Committee's
proposal, facilitated by the World Intellectual Property Organization ("WIPO"), provides three
dispute resolution procedures: online mediation, online expedited arbitration, and administrative
challenge panels.18 Mitchell proposes that the United States government and WIPO should adopt
this method to effectively resolve all trademark domain name disputes. 19International arbitration
has proved useful in settling some territorial disputes between nations, but the question remains
as to whether arbitration is an appropriate dispute resolution mechanism to settle ethnic-based
claims to land. Research has examined three separate arbitration proceedings that have each
involved a territorial dispute, concluding that the use of arbitration to solve territorial disputes

14
Supra note 1, p. 5.
15
David Caron, “ADR in International Disputes: Promoting Sustainable Development and Peace” (2011) 55
Journal of Conflict Resolution
16
Supra note 4.
17
Supra not 6
18
World Intellectual Property Organization (WIPO), “The Domain Name Dispute Resolution Policy” (WIPO, 2023),
p. 10.
19
Ibid.
can be successful only when the parties are committed to resolving the dispute peacefully
through arbitration.20

Mediation has proven effective in public disputes like armed conflict and deadly conflict, as
demonstrated by Senator G. Mitchell's role in mediating the peace talks that led to the Good
Friday/Belfast Agreement in 1998 in Northern Ireland. In the field of armed conflicts, the Carter
Centre's International Negotiation Network (INN) mediated one of the longest civil wars in
African history between the government of the People's Democratic Republic of Ethiopia
(FDRE) and the Eritrean People's Liberation Front (EPLF) in 1989.21

The experience of different kinds of ADR in resolving international conflicts of different nature
shows that public disputes that would challenge domestic jurisdiction of ADR have been freely
and fruitfully entertained in international relations. It is difficult to say that there are subject
matters of a dispute in the international level which cannot be entertained by ADR.22

In terms of the capacity of parties before international ADR, it is concluded that as long as a
party has a cause of action and both disputants are consented, it would be the obligation of the
panel or tribunal to enforce the interests of the disputants.23

Arbitration is a legal process where a party's ability to resolve an international dispute is

determined by their consent as a signatory to a contract with an arbitration clause. The
International Arbitration Association (IAA) and the 1958 United Nations Convention on the
Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) both require
written agreements for arbitration. The limitation in domestic jurisdiction of Arbitration and
Dispute Resolution (ADR) over public interest cases is not present in international relations, as
most disputes between states are resolved through ADR. Public international law does not grant
parties other than sovereign states and international organizations the right to be parties before
ADR, as private individuals, commercial and civic institutes, states, and group interests are
freely entertained.24

International Documents and Organs Regulating ADR

20
Stephen M. Schwebel, “International Commercial Arbitration” (Oxford University Press, 2022), p. 32
21
The Carter Center, “Eritrea-Ethiopia Peace Agreement” (The Carter Center, 1989).
22
Catherine Rogers, “The Healing Power of ADR: Rethinking Approaches to Transnational Dispute Resolution”
(2014) 26 Georgetown International Law Review
23
World Bank, “Alternative Dispute Resolution in Investment Treaties: A Practitioner's Guide” (World Bank, 2020),
p. 6.
24
Supra note 6.
International documents and organizations, such as UNCITRAL, ICC, and ICSID, regulate
Alternative Dispute Resolution (ADR) in international disputes. UNCITRAL has developed
instruments like the Model Law on International Commercial Conciliation and Arbitration, 25
while ICC is a leading institution in international arbitration. 26 The New York Convention, a
multilateral treaty, facilitates the enforcement of international arbitral awards across borders. 27
These bodies have developed rules, guidelines, and procedures to ensure the effectiveness and
fairness of ADR in international disputes. International Documents and Organs Regulating ADR
(ADR) is widely acknowledged as the most effective method of resolving international conflicts. To assist
ADR, treaties have been signed under the supervision of the UN or launched by other public and
domestic entities and nations. Tribunals have been created as the ideal platform for resolving international
and domestic disputes. The American Arbitration Association (AAA), the 1958 New York Convention on
the Recognition and Enforcement of Arbitral Awards, the London Court of International Arbitration
(LCIA), the United Nations Commission on International Trade Law (UNCITRAL), and the International
Chamber of Commerce (ICA) are five sets of international documents chosen for easy understanding of
ADR at the international level.

1. American Arbitration Association (AAA

The American Arbitration Association (AAA) is a non-profit organization that provides alternative
dispute resolution services, including mediation and arbitration. Established in 1926, it has become a
leading provider of conflict management and dispute resolution services in the United States and
internationally. The AAA's mission is to promote fair and efficient dispute resolution through alternative
mechanisms.28In international context, the AAA offers a range of services to assist parties in resolving
cross-border disputes, including international arbitration, mediation, and other forms of alternative
dispute resolution. These services are designed to address the unique challenges and complexities of
resolving disputes involving parties from different jurisdictions and legal systems. The AAA's expertise
in managing complex international disputes makes it a preferred choice for parties seeking to resolve their
conflicts outside the court system.29

The AAA also provides administrative support and facilities for international arbitration proceedings,
ensuring that the process is conducted in a fair, efficient, and neutral manner. This includes the
appointment of arbitrators, management of procedural issues, and enforcement of arbitral awards. The
AAA has had a significant impact on international dispute resolution by providing parties with a trusted
and effective forum for the resolution of cross-border disputes. Its international arbitration rules and
procedures have helped standardize the arbitration process in the international context, making it more
accessible and predictable for parties involved in cross-border disputes. This has increased the use of
25
United Nations Commission on International Trade Law (UNCITRAL), “UNCITRAL Model Law on
International Commercial Conciliation and Arbitration, with Guide to Enactment” (UNCITRAL, 2019), p. 1.
26
International Chamber of Commerce (ICC), “Dispute Resolution Rules” (ICC, 2023), p. 3.
27
United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, opened for signature
June 10, 1958, 330 U.N.T.S. 38.
28
American Arbitration Association (AAA), “International Arbitration Rules” (AAA, 2023), p. 5.
29
Ibid.
international arbitration as a means of resolving conflicts, leading to greater efficiency and cost savings
for parties involved in cross-border disputes.30

2. New York Convention on the Recognition and Enforcement of

Foreign Arbitral Award, 1958
The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards,
1958, was adopted by the United Nations diplomatic conference in 1958 and became effective in
1959. It mandates courts of contracting states to enforce private agreements to arbitrate and
recognize arbitration awards made in other contracting states. This convention is the
foundational instrument for international arbitration, as it applies to arbitrations not considered as
domestic awards in the state where recognition and enforcement are sought. International
arbitration is increasingly popular for cross-border commercial transactions due to its
enforceability, neutral forum selection, finality, flexibility, and confidentiality. As of January
2023, the New York Convention has 172 state parties, including 169 UN member states, the
Cook Islands, the Holy See, and Palestine. Ethiopia and other African nations are signatories,
harmonizing the enforcement of foreign arbitral awards.

3. London Court of International Arbitration (LCIA)

The London Court of International Arbitration (LCIA) is a globally recognized institution that
plays a crucial role in international dispute resolution. Established in 1883, it has a rich history of
providing a forum for resolving international commercial disputes and has been at the forefront
of shaping the practice of international arbitration.31The LCIA is a non-profit organization
governed by a board of directors and a secretariat, which oversees the administration of
arbitrations and ensures the integrity and impartiality of the process. 32 The LCIA also has a
network of court members who provide guidance and support to parties and tribunals throughout
the arbitration process.33The LCIA offers comprehensive rules and procedures for the conduct of
arbitrations, known as the LCIA Arbitration Rules, which provide a flexible and efficient
framework for dispute resolution while ensuring fairness and due process for all parties
involved.34The LCIA's reputation for excellence and neutrality has made it a preferred choice for

30
Id, p 6.
31
International Chamber of Commerce (ICC), "About ICC" (ICC, 2023),last accessed December 27, 2023.
32
ICC, "ICC Rules of Arbitration" (ICC, 2023), p. 3.
33
International Court of Arbitration (ICA), "About ICA" (ICA, 2023),last accessed December 27, 2023.
34
Ibid.
parties engaged in cross-border transactions, and its decisions have been widely respected and
enforced by courts worldwide.35

4. UNCITRAL Documents
The United Nations Commission on International Trade Law (UNCITRAL) was established in 1966 to
address disparities in national laws governing international trade. As a subsidiary body of the General
Assembly, UNCITRAL aims to harmonize and unify the law of international trade by preparing
conventions, model laws, and other instruments to address substantive laws governing trade transactions
and business law. The commission meets annually in New York and Vienna and focuses on improving
the legal framework for international trade. UNCITRAL's legislative texts address international sale of
goods, commercial dispute resolution, electronic commerce, insolvency, international transport,
payments, procurement, infrastructure development, and security interests. Non-legislative texts include
rules for arbitration and conciliation proceedings, notes on organizing arbitral proceedings, and legal
guides on industrial construction contracts and counter trade.

The commission has adopted four documents for harmonization and unification of international trade law
since its establishment by the UN General Assembly. These include the 1976 UNCITRAL Arbitration
Rules, the 1980 UNCITRAL Conciliation Rules, the UNCITRAL Model Law on International
Commercial Arbitration of 1985 (amended in 2006), and the UNCITRAL Model Law on International
Commercial Conciliation of 2002 (amended in 2004). UNCITRAL's Model Law aims to assist states in
designing dispute resolution processes that reduce costs, foster a cooperative atmosphere between trading
parties, prevent further disputes, and inject certainty into international trade. Uniformity on topics such as
confidentiality and evidentiary privilege helps provide greater integrity and certainty in the conciliation
process, especially in cases involving conciliation via the Internet.

5. International Chamber of Commerce (ICC) and the International

Court of Arbitration
The International Chamber of Commerce (ICC) was established in 1919 to promote trade,
investment, open markets, and the free flow of capital. It is a non-profit organization that
supports global trade and globalization, advocating for world businesses in the global economy.
The International Court of Arbitration (ICA) is responsible for hearing and resolving private
disputes and spreading best practices in areas such as banking, marketing, anti-corruption, and
environmental management. The ICC has direct access to national governments worldwide
through its national committees and has expanded its workload to cover 86 countries and have
representatives in North America, Latin and Central America, Africa, the Middle East, and Asia.

The ICC is one of the world's leading institutions in providing international dispute resolution
services, alongside the American Arbitration Association, the London Court of International
Arbitration (LCIA), the Singapore International Arbitration Centre (SIAC), and the Stockholm
Chamber of Commerce. The ICC has adopted various rules to facilitate dispute resolution using
35
International Council for Commercial Arbitration (ICCA), "Dispute Resolution in International Trade, 2023:
Annual Report" (ICC Publishing, 2023), p. 14.
Alternative Dispute Resolution (ADR), including the ICC Rule of Arbitration, which establishes
the ICA. The ICC Arbitration Rule, adopted in 1998, aims to attain uniformity and common
understanding between disputants regarding the valid effect of the proceeding and gives full
power to either the ICC rule or the tribunal as the case may be. The ICC registered the 28,000th
case under the ICC Arbitration Rules, demonstrating the trust parties have in ICC to resolve
commercial disputes.

ADR in Regional Level (Africa and Europe)

1. Africa
The African Union (AU) and the European Union (EU) have made significant strides in
promoting Alternative Dispute Resolution (ADR) mechanisms to address regional disputes. 36
The AU established the African Court of Justice and Human Rights, providing a platform for
resolving disputes through arbitration and other ADR methods. The EU has implemented
directives and regulations to promote mediation and conciliation in cross-border civil and
commercial disputes among EU member states. 37 Regional organizations have also taken steps to
promote ADR in their respective regions, such as the African Union Commission developing
Guidelines on Alternative Dispute Resolution for Africa and the EU establishing a framework
for ADR, including the ADR Directive.38

The current agenda for dealing with conflicts in Africa focuses on the normative structure of
African leaders for dealing with conflict, peace, and security. The AU Act, adopted in 2000, aims
to promote peace, security, and stability on the continent and establish necessary conditions for
the continent to play its rightful role in the global economy and international negotiations. 39
However, the Act did not initially provide any mechanisms for conflict prevention, management,
and resolution, which was one of the goals of the Union.

36
African Union, "African Court on Justice and Human Rights" (African Union, 2023), accessed December 27,
2023.
37
European Commission, "Directive 2008/52/EC of the European Parliament and of the Council of 21 May 2008 on
certain conflict-of-law rules concerning mediation in civil and commercial matters" (EU, 2008).
38
African Union Commission, "Guidelines on Alternative Dispute Resolution for Africa" (African Union, 2010
39
African Union Act, 2000, Article 3(e).
African leaders have created various institutions to manage conflicts, including ad hoc
committees and commissions, but these arrangements are often remedial rather than proactive. 40
Three major institutional structures designed by African leaders for conflict management and
resolution are the OAU Commission of Mediation, Conciliation and Arbitration, the MCMPR,
and the Peace and Security Council. The MCMPR aims to streamline procedures and processes
of dealing with conflicts and conflict situations, enabling speedy action to prevent or manage and
ultimately resolve conflicts when and where they occur. Critics have called for a revision of
these doctrines, and the OAU has mandated its secretary-general to undertake a review of the
structures, procedures, and working methods of the Central Organ to remove obstacles to the
smooth functioning of the MCMPR.

2. Europe
Access to justice is a top political agenda in all European Union Member States, as more
disputes are brought to court, leading to longer waiting periods and disproportionate legal costs.
Alternative dispute resolution (ADR) methods are extrajudicial procedures used to resolve civil
or commercial disputes.41 These methods involve collaboration between disputing parties and a
neutral third-party.42 The advent of the single European market has increased the movement of
goods and people across the EU, but also increased the number of disputes involving nationals of
different Member States. ADRs are considered an important element in providing fair and
efficient dispute-resolution mechanisms at the EU level. 43 The European Commission has
adopted two recommendations on ADR in consumer disputes, including procedures involving a
third party and procedures restricted to a single attempt to draw conflicting parties together. 44

In April 2002, the European Commission launched a Green Paper on Alternative Dispute
Resolution (ADR) to initiate a constructive debate on legal issues related to alternative dispute
resolution in civil and commercial law. 45 The Green Paper discusses various means of alternative
dispute resolution, such as clauses in contracts, limitation periods, confidentiality, consent
validity, agreements, third party training, accreditation, and liability rules. 46 The paper also
40
International Crisis Group, "The African Union's Conflict Management Architecture: In Need of Reform" (ICG,
2017), p. 3.
41
European Commission, "Access to Justice: A Key Element of Building a More Democratic and Efficient Europe"
(EC, 2012).
42
Ibid.
43
European Commission, "Recommendation 2001/450/EC of the Commission of 18 May 2001 on the principles
relating to out-of-court settlement of consumer disputes" (EU, 2001).
44
European Commission, "Green Paper on Alternative Dispute Resolution in Civil and Commercial Matters" (EC,
2002).
45
Id, p. 12
46
Id, p. 16
discusses non-determinative forms of ADR that aim to achieve social harmony, but many
mediations involve parties with considerable enmity. The Commission plans to launch two
initiatives: developing a European plan for best practice in mediation in 2003 and launching a
European code of conduct in 2004. A conference in Brussels in July 2004 discussed self-
regulatory initiatives for mediation and the launch of the European code of conduct. The code
will remain an informal document and will be made available on the internet. The Commission
services will consider organizing ad hoc meetings with representatives of organizations
subscribing to the code to review implementation and content. 47 Large-scale meetings may be
organized annually to discuss specific issues of ADR to maintain dialogue and encourage
exchange of experiences.

Ethiopia's Approach to International ADR

Ethiopia is a global player in international dispute settlement, with its dynamic ideas and technology
transfer exposing it to the world community. The movement of citizens for settlement and investment
facilitates the flow of practices that were limited to certain parts of the world. As a nation with foreign
relations with other citizens in private manner and at the state level, it is inevitable that Ethiopia will be
exposed to international dispute settlement mechanisms. Ethiopia is a party to the 1958 Convention on the
recognition and enforcement of foreign arbitral awards, which guaranteed the smooth enforceability of an
award given in Ethiopian to be enforced elsewhere in other member states. 48

The New York Convention is not the only document that regulates the reciprocal enforceability of foreign
arbitral awards in other states. Other regional and bilateral treaties have also been made to facilitate the
same. National laws also regulate the enforceability of foreign arbitral awards in Ethiopia, similar to the
enforcement of foreign court decisions. The enforcement of foreign arbitral awards in Ethiopia is
regulated by national law and bilateral treaties signed so far. Ethiopia has been involved in international
dispute resolution (ADR) for various reasons, including the Ethio-Eritrean boarder dispute and the
adoption of the 1992 Permanent Court of Arbitration Optional Rules for Arbitrating Disputes between
Two States. The neutral Boundary Commission, composed of five members, is an arbitration tribunal
with the right to make its own rules of procedure based on the 1992 PCA Optional Rule for Arbitrating
between two States. This rule can be used by any state or institute without any accession to the PCA
founding conventions or the PCA founding conventions. 49Ethiopia has made progress in the incorporation
of the 1899 Convention on the Pacific Settlement of International Disputes, with Proclamation 348/2003
being recorded in the registry of the convention on May 28, 2003. The second document has more
detailed provisions in the attainment of its objectives, such as the International Commission of Inquiry,
which is under the supervision of the International Bureau of the Permanent Court of Arbitration. Part IV

47
European Commission, "Communication from the Commission to the Council and the European Parliament on the
outcome of the stakeholder consultation on a European Code of Conduct for Mediation" (EC, 2004).
48
United Nations, "Convention on the Recognition and Enforcement of Foreign Arbitral Awards" (United Nations,
1958).
49
Permanent Court of Arbitration, "Optional Rules for Arbitrating Disputes between Two States" (Permanent Court
of Arbitration, 1992).
of the second document established "Arbitration by Summary Procedure" in disputes admitting of a
summary procedure.50

Ethiopia also has connections with international ADR due to the existence of foreign companies working
in the nation in different areas, such as investors, service providers, constructors, consultants, and NGOs.
These relations depend on the agreement made between the parties, which are not regulated by the same
law of a nation. Therefore, dispute settlement mechanisms and determining applicable laws are common.

International ADR tribunals, particularly arbitration and documents, will be the first option for parties to
the contract, as the parties come from different legal regimes. Globalization is accelerating the interaction
of peoples of different nations, making dispute settlement mechanisms where parties of any nation can be
entertained important. Ethiopia has been involved in international ADR in various respects, such as
approving the 1899 PCA founding convention and referring the Ethio-Eritrea Boarder Commission to use
the 1992 PCA Optional Rule for Arbitrating between two States are few examples. 51

50
International Bureau of the Permanent Court of Arbitration, "Convention for the Pacific Settlement of
International Disputes" (Permanent Court of Arbitration, 1899).
51
See sources referencing globalization and its impact on dispute settlement mechanisms, such as the World Bank's
"Justice for All" initiative or reports by the International Chamber of Commerce.
SUMMARY
The role of ADR in international dispute settlement cannot be easily considered as an alternative means
of dispute settlement. It is partly due to the lack of authoritative international public and private tribunals
with jurisdiction over all subject matters and parties of the world. The development of e-commerce has
made ADR the best solution for settling disputes without the need for physical confrontation. ADR has
become a crucial tool for resolving international and regional disputes due to its flexibility, efficiency,
and cost-effectiveness. It is regulated at the global level by international documents and organizations,
and regional entities like the AU and EU promote ADR mechanisms. Ethiopia's approach to international
ADR reflects its commitment to facilitating cross-border dispute resolution. As the global landscape
evolves, the significance of ADR in international and regional contexts is likely to grow, making it an
indispensable tool for achieving effective conflict resolution. The right of individual parties to be a party
before the tribunal and get valid out comes under. ADR can resolve almost all disputes, and there is no
subject matter that cannot be resolved using ADR methods. To facilitate the smooth settlement of
international disputes by a duly established ADR tribunal and organized procedure, different international
documents have been adopted and international tribunals have been established by different parties.
Ethiopia is not far away from the international practice, as it has approved the 1899 PCA founding
convention, stipulated procedures for enforcement of foreign arbitral awards under its civil procedure
code, and used the 1992 PCA option arbitration rule in the settlement of the Ethio-Eritrean boarder
dispute.