Interstate arbitration

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The interstate arbitration , often called international arbitration called, is an intergovernmental dispute resolution process, which aims at a binding decision on the parties to the dispute. The parties to the dispute have the opportunity to decide on the legal basis, the composition of the court, the selection of the applicable law and the order of the proceedings.

The I Hague Convention for the Peaceful Settlement of International Disputes of October 18, 1907 defines international arbitration in Art. 37 sentence 1 as follows: “The object of international arbitration is the settlement of disputes between states by judges of their choice on the basis of the Respect for the law. “Arbitration tribunals can be formed ad hoc and then decide only on a dispute that has already arisen. A mostly written arbitration settlement (compromis) between the parties to the dispute defines the subject matter of the dispute, the composition of the arbitral tribunal, its decision-making criteria (often international law ) and the procedure.

The permanent arbitration tribunals have to be distinguished from the ad hoc arbitration tribunals, which have become rare. You are responsible for resolving future disputes between the parties. However, this can also be agreed in special bilateral or multilateral arbitration agreements. These contracts contain details of the establishment of the arbitral tribunal, its jurisdiction and its procedures. Often, however, arbitration clauses with the corresponding regulations on the procedure and form of dispute resolution or with the determination of mandatory arbitration are incorporated directly into international agreements.

When the contracting parties decide that arbitration is mandatory, each party is unilaterally authorized to appeal to the permanent arbitration tribunal. The composition of the arbitral tribunal can be very different, depending on the agreement of the parties to the dispute. As a rule, an arbitration tribunal consists of three to five judges. But it can also be just one judge. In the case of collegial composition, the chairman does not belong to either of the two parties to the dispute. If an arbitration agreement does not contain any agreements on jurisdiction, the basis for decision-making and the procedure, the court is authorized to examine this itself.

The arbitration award made by the arbitral tribunal is binding on the parties to the dispute and makes a final decision on the dispute. It is possible to appeal against the arbitral award, but this is rarely used. If the obligations arising from an arbitration decision are not fulfilled by one party, the other contracting party has the means granted under general international law at its disposal to respond to. It can respond to non-compliance with retaliation or reprisals. Arbitration is a frequently used dispute resolution instrument in the world of states. The attractiveness of this instrument lies above all in the sovereignty-friendly and at the same time flexible design options. The conflicting parties have a decisive influence on the composition of the bench, the jurisdiction and the basis for decision-making.

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