CHAPTER Two INTRODUCTION TO INTERNATIONAL COMMERCIAL ARBITRATION

SECTION ONE Definition and characteristics of international commercial arbitration

1 Definition of international commercial arbitration Arbitration is a law system of dispute resolution in which parties to a dispute voluntarily select a neutral third party (or a panel of third parties) to present their dispute for a legally binding ruling.

1 Definition of international commercial arbitration 1.1 Definition of international

Two main criteria may be used, either alone or in conjunction,

1.1 Definition of international 1.1.1.Material connecting factors

1.1. 2.International nature of the dispute

the UNCITRAL Model Law adopts a mixed criterion An arbitration is international if : the parties to an arbitration agreement have, at the time of the conclusion of that agreement, their places of business in different States;

the UNCITRAL Model Law adopts a mixed criterion

Or one of the following places is situated outside the State in which the parties have their places of business: the place of arbitration if determined in, or pursuant to, the arbitration agreement; any place where a substantial part of the obligations of the commercial relationship is to be performed or the place with which the subject-matter of the dispute is subjectmost closely connected; or the parties have expressly agreed that the subject-matter subjectof the arbitration agreement relates to more than one country.

1. 2 Definition of commercial The Model Law does not define the word finally but appears as a footnote to Art.1(1), which states: The term commercial should be given a wide interpretation so as to cover matters arising from all relationships of a commercial nature, whether contractual or not. Relationships of a commercial nature include, but are not limited to, the following transactions: any trade transaction for the supply or exchange of goods or services; distribution agreement; commercial representation or agency; factoring; leasing; construction of works; consulting; engineering; licensing; investment; financing; banking; insurance; exploitation agreement or concession; joint venture and other forms of industrial or business co-operation; carriage of goods or passengers by air, sea, rail or road.

The relationships include the following transactions: any sales of goods; property leasing; construction of works; technology transfer; joint venture operation; cooperative business operation; exploiting and developing natural resources; insurance; credit; services; agency; consulting; carriage of goods or passengers by sea, air, rail or road; product liability; pollution of the environment; marine accidents and disputes of proprietorship, etc. but exclude the dispute between foreign investor and host country.

2. Characteristics of international commercial arbitration 2.1. Nongovernmental

2.2 Autonomy
2.3. Speed and economy

2.4. Specialized competence of arbitrators

2. Characteristics of international commercial arbitration

2.5.Confidentiality

2.6. Enforcement of Awards

3. Differences & relations between arbitration and mediation

4. Differences between arbitration and litigation

As concerns the nature of organizations As concerns the source of jurisdiction, As concerns the publicity of proceeding As concerns the autonomy of the parties As concerns the decision

SECTION TWO The Origin and Development of International Commercial Arbitration Law
1 The origin and development of international commercial arbitration Law

2 International legislation on commercial arbitration the Geneva Protocol on Arbitration Clauses of 1923 the Geneva Convention on the Execution of Foreign Arbitral Awards of 1927 In 1958, the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (hereafter referred to as " the New York Convention ") 2.1 the New York Convention

2.2 The Convention on the Settlement of Investment Disputes between States and Nationals of Other States " the Washington Convention or the ICSID Convention " came into force on October 14, 1966.

2.3 The UNCITRAL Model Law on International

Commercial Arbitration " The Model Law " adopted by the United Nations Commission on International Trade Law (UNCITRAL) on 21 June 1985 The Model Law is structured into eight separate chapters Chapter II deals with the arbitration agreement

2.4 The European Convention on International Commercial Arbitration of 1961 The European Convention of 1961

2.4 The Inter-American Convention on International Commercial Arbitration signed in Panama on January 30,1975 .the Panama Convention