News
2002

ICC Vision Gradually Becomes Reality

The recent accession of Brazil, the Dominican Republic, Iceland and Zambia to the New York Convention, brought the number of parties to this major multilateral treaty on international arbitration to 131.

The New York Convention was prepared by the United Nations and adopted in 1958. However, its underlying aim - to create conditions in which arbitration agreements and awards will be recognized and enforceable throughout the world - is the result of ICC's pioneering work in this direction during the preceding decades.

The Convention achieves its aim by requiring courts in contracting states (i) to refer to arbitration any disputes brought before them that are covered by an arbitration agreement, (ii) to recognize and enforce foreign arbitral awards provided that certain conditions relating to proof and validity are met.

A country's accession to the New York Convention often goes hand in hand with a reform of its domestic arbitration law. This, for instance, was the case in Iceland, whose accession to the Convention was preceded by a move to amend the existing arbitration statute. Similarly, arbitration law in Brazil has been evolving over recent years and Brazil's accession may be seen as the consequence of these developments.*

However, legal reform is only truly effective if the courts put the reforms into practice. The New York Convention encourages this, by placing courts under an obligation to respect valid arbitration agreements and awards. A full list of parties to the New York Convention can be found on the web site of the United Nations Commission on International Trade Law, UNCITRAL.

(* cf. Arnoldo Wald, 'Developments in Brazilian Arbitration Legislation, 1996-2001' (2001) 12:2 ICC International Court of Arbitration Bulletin 42)