4 - The New York Convention and the UNCITRAL Model Law on International Commercial Arbitration: Existing Models for Legal Convergence in Asia?

Summary

A number of questions arise when disputes occur between corporations in two different countries to be settled by arbitration in a third country. First, if a dispute arises, and one of the parties refuses to arbitrate, where is such an arbitration agreement to be enforced? Second, which court will have such jurisdiction? Third, if there is an arbitration that leads to an award of damages and costs, how is that award to be enforced against the losing party if the losing party refuses to voluntarily implement the award? Fourth, again, which court has such jurisdiction? It was in these circumstances that various international rules, treaties and conventions were enacted. Hwang traces the success of two remarkable uniform law instruments – the New York Convention and the UNCITRAL Model Law on International Commercial Arbitration – the cornerstones of international commercial arbitration. He notes the reasons for their relative success and widespread adoption, and while highlighting shortcomings, reflects whether these are fundamental enough to require revision of the instruments. Hwang concludes that while not perfect, nothing ever is: both instruments are exemplary in their goal to harmonise and improve arbitration laws.