Integration and Dispute Resolution in Small States

Current mechanisms for resolving cross-border disputes through national court litigation pose substantial risks to business engaged in international trade, including the risk of conflicting national laws, biased, inefficient, inexperienced, or otherwise unsuitable decision-makers, inconsistent and duplicative national court proceedings, and severe obstacles to the enforcement of judgments. These shortcomings inhibit cross-border trade and investment, in some instances denying parties effective access to justice. The impact of these deficiencies is felt more by developing small States that are traditionally disadvantaged market participants. This paper discusses the role that international arbitration can play in alleviating these obstacles to trade for small States. In particular, through the use of international arbitration, including the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, the UNCITRAL Model Law on International Commercial Arbitration and bilateral arbitration treaties (BATs), small States will be able to mitigate the risks and uncertainties posed by the existing mechanisms for international dispute resolution, thereby promoting international trade and investment.