What Impact Will Brexit Have On Arbitration?

Introduction

Arbitration, and particularly commercial arbitration, is unlikely to be affected by Brexit.  That is so regardless of whether there is a negotiated exit or a no deal scenario.  Commercial arbitration is a creature of contract, in terms of the agreement to arbitrate and the applicable procedures.  That will not be affected by Brexit.  The law of the seat of the arbitration will also continue to apply, post-Brexit, to the supervisory jurisdiction of the courts.  The recognition and enforcement of arbitration awards is governed by an international convention, known as the New York Convention, rather than the EU regulations that govern the enforcement of court judgments.  That will continue to be the position post-Brexit and may in fact lead to a greater use of arbitration given potential uncertainties around the enforceability of UK judgments.