Arbitration strengthens its position in Central Asia

The United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, otherwise known as the New York Convention, has acquired an increasing number of Central Asian countries as members over the years. Georgia and Mongolia led the way in 1994, followed by Kazakhstan in 1995, Kyrgyzstan and Uzbekistan in 1996, Armenia in 1997, Azerbaijan in 2000 and Iran in 2001. The most recent Central Asian country to sign up is Afghanistan, where the New York Convention will enter into force on 28 February 2005.

The adoption of the New York Convention in 1958 was a landmark in international arbitration and owes much to the work and inspiration of ICC during the preceding years.

The Convention obliges courts in its member states to refer to arbitration any disputes brought before them which are covered by a valid arbitration agreement. It also limits the grounds upon which states may refuse to recognize or enforce foreign arbitral awards to a number of basic principles including due process, arbitrability, public policy and consistency with the parties' arbitration agreement.

Since 1958, the number of states in which the New York Convention is in force has continually increased and, with Afghanistan, will stand at 135. This leads to greater confidence in the effectiveness of arbitration in such states, which is of considerable importance to parties involved in international business relationships.