This is a course Dispute Settlement in International Trade, Investment and Intellectual Property consists of some forty modules.

 

This module surveys the basic features of the recognition and enforcement of foreign arbitral awards under the New York Convention of 1958 (hereinafter: NYC). The recognition and enforcement proceedings constitute the final stage of any arbitration whenever the arbitral award is not executed voluntarily.

 

Since the arbitrators are private persons, national courts are necessarily involved in the recognition and enforcement of arbitral awards. In 1958, the attempt by the ECOSOC to adopt uniform rules on the recognition and enforcement of foreign arbitral awards resulted in the most important international instrument in the field – the New York Convention. Since then, the Convention has had a significant impact on arbitration practice, as well as on the court practice in connexion with arbitration. This is best witnessed by the fact that, to date, 133 countries have become party to the Convention. Thus it can be said that the NYC successfully fulfills its purpose of facilitating the recognition and enforcement of foreign awards.

 

While a court seized with a request for the recognition and/or enforcement of a foreign arbitral award may not examine the award on its merits, it may refuse to recognize or enforce the award on the basis of some grounds provided by the NYC. The grounds for refusal are intended to protect the vital interests of the enforcing State or to provide internationally recognized procedural standards for the protection of the parties. Of these grounds, it appears that the formal validity of the arbitration agreement no longer meets the needs of modern business transactions, thus calling for possible amendment.

 

 

The harmonization achieved in the field of recognition and enforcement of arbitral awards is due mainly to the worldwide acceptance of the NYC, which is growing annually. In 2002 alone, five more countries became Contracting States to the Convention.