Myanmar To Sign New York Convention

After months of speculation, Myanmar's Parliament has approved plans to sign the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the "New York Convention"). This is another step by the formerly reclusive regime to liberalize the economy. It follows promising reforms in other key areas, including foreign investment and censorship laws.

The proposal is good news for foreign investors, who will appreciate the greater certainty that foreign arbitral awards will be enforceable in Myanmar. That said, it remains to be seen how any international obligations will be implemented under Myanmar's current legal framework.

Implications

The New York Convention dates back to 1958 and currently has 148 contracting states. It requires state parties to recognize written arbitration agreements as binding and to enforce foreign arbitral awards as if they were domestic awards. Enforcement of an award may be refused only in very limited circumstances, such as