Dispute resolution across international borders: Should we use arbitration?

The use of commercial arbitration by Australian companies is increasing, especially in the context of cross-border business.

In this article, we briefly introduce commercial arbitration, explain the pros and cons of resolving disputes through international commercial arbitration (as opposed to court proceedings), and summarise the circumstances in which Australian parties would be better off choosing to arbitrate their cross-border dispute.

What is commercial arbitration?

Commercial arbitration is a method of dispute resolution where the parties agree, usually in an arbitration clause as part of the main transaction agreement or in a separate arbitration agreement, to have an independent and impartial single arbitrator or arbitral tribunal (usually made up of three arbitrators) determine their disputes. The single arbitrator or arbitral tribunal makes a final determination that is binding on the parties to the dispute.