Sociology | Mercantile Law | International Law | International Relations
Beyond the unsettled diplomatic methods to solve inter-state disputes, the international law has also maintained the settled un-diplomatic, to smooth the relations. Among these two chapters are worth mentioning;
ARBITRATION
Definition
International law defines Arbitration as, “a procedure for the settlement of disputes between states by a binding award (decision of the arbitrator) on the basis of law and as a result of an undertaking voluntarily accepted.”
Characteristics of Arbitration
- The arbitrator is chosen mutually by both the conflicting states
- The states are remain under the implied duty to abide by the award
- There may be a single arbitrator or a tribunal of comprising of two or more in order to arbitrate a particular issue of certain class.
History of Arbitration
Arbitration, which is believed to be the merger of negotiations and mediation with an additional factor of the binding nature of its award, was first brought into practice when a commission was made under the Fay Treaty of 1794 between the USA and UK to settle arbitration issues outstanding after the War of Independence. Later, another example came when Alabama Arbitration of 1871-72 between the USA & UK was successful.
THE PERMANENT COURT OF ARBITRATION
Under the Hague Convention for the Pacific Settlement of International Disputes -1899, the arbitration court was established in 1900. The PCA consists of a panel of international lawyers nominated by the states parties to the convention. Further machinery of the Court comprises of;
- The International Bureau (evaluable)
- The Permanent Administrative Council (evaluable)
The Arbitral Award & Appeal
The award of the arbitration is final and binding on the parties of the dispute but as far as appeal to the award by a state is concerned; then in a recent case Guinea-Bissau v. Senegal (1991), upon certain grounds it has been allowed to appeal in ICJ. These grounds are;
- Exces de Pouvoir – It means that when the tribunal exceeds beyond the limitations of use of jurisdiction over which both the parties agreed then the decision held would be null and void and is appealable in the ICJ.
- Failure to reach a decision by a true majority in the tribunal even then the matter is appealable in the ICJ.
- The case of unclear and vague decision lacking the sufficient legal reasoning will also hold the decision challengeable in the ICJ.
Arbitration Preferable over ICJ – Reasons
In certain ways, arbitration is preferred to the ICJ for following reasons;
- Minor inter-states disputes are brought here in an easy and informal manner
- Only states can approach ICJ whereas in Arbitration the international organizations may obtain an award over a dispute.