Arbitration in the international trade disputes

What is an arbitration body in the international trade disputes? How does it work?

We usually need an arbitration body when a dispute arises between parties of different countries on certain matter. The question arise : Which laws should be adopted ? Which court should solve this dispute ?
Disputes always arise when a party does not comply with the contracts signed beforehand. Others arise from documentary credits involving parties from different countries. All these disputes should be settled in accordance with the settlement and arbitration rules set by the international chamber of commerce. An arbitrator or more is appointed to consider these disputes. These disputes among contractors should be settled in the international court for chambers of commerce in paris, provided that it is set in the contract and its rules comply with the rules set in the Egyptian law. The International court for chambers of commerce is known for its speedy procedures, low-cost, and secrecy (confidentiality).

What about the international chamber of commerce ? What is it ? How does it work ?

International chamber of commerce :

The organization which represents businessmen internationally. It was set up after the international trade conference held in 1919 in Atlantic city, U.S.A.
This chamber has non- government committees in most countries all over the world. It also consists of other members in the countries which do not have non government committees. Each committee represents the main trade organizations in the various economic sectors. Each committee sends its permanent representatives to the board of the international chamber. The International chamber of commerce is considered the spokesman of businessmen in dealing with governments or international organizations together with solving all the problems that they may face with some countries through setting the standard principles used. It also provides businessmen with the scientific and practical information mentioned in its publications and documents.
This chamber is considered a consulting body from the first degree in front of the economic and social council in the United Nations. Two organizations are affiliated to this chamber:

Firstly : The International office for chambers of commerce.

Secondly : The arbitrary organization or the international court for commercial arbitration.

Terms of arbitration through this chamber :

1- Parties should agree on setting this chamber as their arbitrary body.

2- The dispute should be international.

3- The case should be commercial one.

The international chamber of commerce recommends using the following form:-

All the disputes arising due to this contract should be settled in accordance with the settlement rules of the chamber through an arbitrator or more appointed according to those rules.

Some terms on the place and number of arbitrators, national law applied on this contract for some countries or the law that should be applied - should be added to the text.

Arbitration procedures :

  It begins with a written request from one party or all parties to the secretariat of the arbitrary body or the non-government committee existing in his country including the following data:-
- Names and addresses of the disputing parties
- Full, comprehensive and accurate information about the subject of the dispute.
- Setting the subject from the complaining party's point of view.
- All the data concerning the number of arbitrators and their choice. In case of finding difficulty in estimating the exact required sum, the complaining party keeps his right in estimating it later or let the court do that for him.

The request should :

1- It should be written either in English or in French.

2-  It should be accompanied by an original, a number of copies for the arbitrary organization members and an additional copy for all the documents of the agreements signed among parties.

3- The request should be accompanied with a free of FF 100

The body concerned with the arbitration procedures :

It consists of arbitration court, arbitrators and secretariat. The arbitration court consists of a chief or two assistant achieves, technical consultants and a general secretary chosen by the council for international chambers of commerce in addition to the members appointed by the non-government committees. Each committee appoints a permanent representative and a vice representative. The court supervises and guarantees applying rules and arbitrary systems. The court performs its tasks during its monthly sessions.

The nationality of arbitrators :

Parties of dispute have the right to choose the nationality of arbitrators while the only arbitrator is usually chosen - by the court - from a country which is not a party of the dispute. So is the third arbitrator.

Can arbitrators be rejected or replaced?

Of course. If a party does not like a certain arbitrator, he has to present a request to the court. When a court reject an arbitrator due to legal reasons, the party or the court that has appointed him should appoint another instead of him.

Referring dispute to an arbitrator :

After presenting arbitrary request to the court secretariat, the claimed against should be sent a notification accompanied with copies of all the enclosed documents. The claimed against should send the court secretariat an answer as soon as possible. The arbitration rules have given him a 30 days grace period after which the court and arbitrators resume the arbitration procedures without waiting for the claimed against. When the claimed against replies, the secretariat informs the claimant. Then, he should present a reply to all these clams in 30 days. Thus, the case is referred to the arbitrator.

The arbitration agreement does not stop parties to present a request to the concerned authorities asking for taking the preventive procedures whether before or after referring the case to the arbitrator.

Does the claimant have the right to choose the place of arbitration?

Of course : The place of arbitration should be chosen either by parties of dispute or by the arbitration court.

The rules organizing procedures :

The arbitrator should always abide by the arbitration rules of the international chamber. In case of not finding an appropriate text, he should apply the law of the country in which the arbitration takes place unless otherwise agreed.

The arbitrator's decision :

The arbitrator's decision is considered final and obligatory. In case of reaching a friendly settlement, the claimant presents a request to withdraw the case on condition that the other party agrees. The two parties ask the arbitrator to register the reconciliation terms. The advantage of this method is that it gives the two parties an obligatory formal document any of them can use when necessary