Convention on the Recognition and Enforcement of Foreign Arbitral Awards

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Template:Short description Template:Use dmy dates Script error: No such module "Infobox".Template:Template otherScript error: No such module "Check for unknown parameters". Script error: No such module "Sidebar". The Convention on the Recognition and Enforcement of Foreign Arbitral Awards, commonly known as the New York Convention, was adopted by a United Nations diplomatic conference on 10 June 1958 and entered into force on 7 June 1959. The Convention requires courts of contracting states to give effect to private agreements to arbitrate and to recognize and enforce arbitration awards made in other contracting states. Widely considered the foundational instrument for international arbitration, it applies to arbitrations that are not considered as domestic awards in the state where recognition and enforcement is sought.

The New York Convention is very successful. Nowadays many countries have adopted arbitration laws based on the UNCITRAL Model Law on International Commercial Arbitration. This works with the New York Convention so that the provisions on making an enforceable award, or asking a court to set it aside or not enforce it, are the same under the Model Law and the New York Convention. The Model Law does not replace the Convention; it works with it. An award made in a country which is not a signatory to the Convention cannot take advantage of the Convention to enforce that award in the 169 contracting states unless there is bilateral recognition, whether or not the arbitration was held under the provisions of the UNCITRAL Model Law.

Background

In 1953, the International Chamber of Commerce (ICC) produced the first draft Convention on the Recognition and Enforcement of International Arbitral Awards to the United Nations Economic and Social Council. With slight modifications, the council submitted the convention to the International Conference in the Spring of 1958. The Conference was chaired by Willem Schurmann, the Dutch Permanent Representative to the United Nations and Oscar Schachter, a leading figure in international law who later taught at Columbia Law School and the Columbia School of International and Public Affairs, and served as the President of the American Society of International Law.

International arbitration is an increasingly popular means of alternative dispute resolution for cross-border commercial transactions. The primary advantage of arbitration over court litigation is enforceability: an arbitration award is enforceable in most countries in the world. Other advantages of arbitration include the ability to select a neutral forum to resolve disputes, that arbitration awards are final and not ordinarily subject to appeal, the ability to choose flexible procedures for the arbitration, and confidentiality.

Once a dispute between parties is settled, the winning party needs to collect the award or judgment. If the loser voluntarily pays, no court action is necessary.[1] Otherwise, unless the assets of the losing party are located in the country where the court judgment was rendered, the winning party needs to obtain a court judgment in the jurisdiction where the other party resides or where its assets are located. Unless there is a treaty on recognition of court judgments between the country where the judgment is rendered and the country where the winning party seeks to collect, the winning party will be unable to use the court judgment to collect.

Cases and statistics

Public information on overall and specific arbitration cases is quite limited as there is no need to involve the courts at all unless there is a dispute, and in most cases the loser pays voluntarily.[1] A review of disputed cases in China found that from 2000 to 2011, the Supreme People's Court upheld the refusal to enforce the arbitration agreement in 17 cases due to a provision in Article V of the convention (China has an automatic appeal system to the highest court, so this includes all such refusals).[2]

Summary of provisions

Under the convention, an arbitration award issued in any other state can generally be freely enforced in any other contracting state, only subject to certain, limited defenses. These defenses are:[3]

  1. a party to the arbitration agreement was, under the law applicable to him, under some incapacity, or the arbitration agreement was not valid under its governing law;
  2. a party was not given proper notice of the appointment of the arbitrator or of the arbitration proceedings, or was otherwise unable to present its case;
  3. the award deals with an issue not contemplated by or not falling within the terms of the submission to arbitration, or contains matters beyond the scope of the arbitration (subject to the proviso that an award which contains decisions on such matters may be enforced to the extent that it contains decisions on matters submitted to arbitration which can be separated from those matters not so submitted);
  4. the composition of the arbitral tribunal was not in accordance with the agreement of the parties or, failing such agreement, with the law of the place where the hearing took place (the "lex loci arbitri");
  5. the award has not yet become binding upon the parties, or has been set aside or suspended by a competent authority, either in the country where the arbitration took place, or pursuant to the law of the arbitration agreement;
  6. the subject matter of the award was not capable of resolution by arbitration; or
  7. enforcement would be contrary to "public policy".

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Additionally, there are three types of reservations that countries may apply:[4]

  1. Conventional Reservation – some countries only enforce arbitration awards issued in a Convention member state
  2. Commercial Reservation – some countries only enforce arbitration awards that are related to commercial transactions
  3. Reciprocity reservation – some countries may choose not to limit the convention to only awards from other contracting states, but may however limit application to awards from non-contracting states such that they will only apply it to the extent to which such a non-contracting state grants reciprocal treatment.

States may make any or all of the above reservations. Because there are two similar issues conflated under the term "reciprocity", it is important to determine which such reservation (or both) an enforcing state has made.

Parties to the Convention

As of January 2023, the convention has 172 state parties, which includes 169 of the 193 United Nations member states plus the Cook Islands, the Holy See, and the State of Palestine. Twenty-four UN member states have not yet adopted the convention. In addition, Taiwan has not been permitted to adopt the convention (but generally enforces foreign arbitration judgments) and a number of British Overseas Territories have not had the Convention extended to them by Order in Council. British Overseas Territories to which the New York Convention has not yet been extended by Order in Council are: Anguilla, Falkland Islands, Turks and Caicos Islands, Montserrat, Saint Helena (including Ascension and Tristan da Cunha).

State Date of Adoption State Date of Adoption
Template:Country data Afghanistan 30 November 2005 Template:Country data Albania 27 June 2001
Template:Country data Algeria 7 February 1989 Template:Country data Andorra 19 June 2015
Template:Country data Angola 6 March 2017
Template:Country data Antigua and Barbuda 2 February 1989 Template:Country data Argentina 14 March 1989
Template:Country data Armenia 29 December 1997 Template:Country data Australia 26 March 1975
Template:Country data Austria 2 May 1961 Template:Country data Azerbaijan 29 February 2000
Template:Country data Bahamas 20 December 2006 Template:Country data Bahrain 6 April 1988
Template:Country data Bangladesh 6 May 1992 Template:Country data Barbados 16 March 1993
Template:Country data Belarus 15 November 1960 Template:Country data Belgium 18 August 1975
Template:Country data Belize 15 March 2021
Template:Country data Benin 16 May 1974 Template:Country data Bhutan 25 September 2014
Template:Country data Bolivia 28 April 1995 Template:Country data Bosnia and Herzegovina 1 September 1993
Template:Country data Botswana 20 December 1971 Template:Country data Brazil 7 June 2002
Template:Country data Brunei 25 July 1996 Template:Country data Bulgaria 10 October 1961
Template:Country data Burkina Faso 23 March 1987 Template:Country data Burundi 23 June 2014
Template:Country data Cambodia 5 January 1960 Template:Country data Cameroon 19 February 1988
Template:Country data Canada 12 May 1986 Template:Country data Cape Verde 22 March 2018
Template:Country data Central African Republic 15 October 1962
Template:Country data Chile 4 September 1975 Template:Country data People's Republic of China 22 January 1987
Template:Country data Colombia 25 September 1979 Template:Country data Democratic Republic of the Congo 5 November 2014
Template:Country data Comoros 28 April 2015 Template:Country data Costa Rica 26 October 1987
Template:Country data Côte d'Ivoire 1 February 1991 Template:Country data Cook Islands 12 January 2009
Template:Country data Croatia 26 July 1993 Template:Country data Cuba 30 December 1974
Template:Country data Cyprus 29 December 1980 Template:Country data Czech Republic 30 September 1993
Template:Country data Denmark 22 December 1972 Template:Country data Djibouti 14 June 1983
Template:Country data Dominica 28 October 1988 Template:Country data Dominican Republic 11 April 2002
Template:Country data Ecuador 3 January 1962 Template:Country data Egypt 9 March 1959
Template:Country data El Salvador 10 June 1958 Template:Country data Estonia 30 August 1993
Template:Country data Ethiopia 24 August 2020 Template:Country data Fiji 26 December 2010
Template:Country data Finland 19 January 1962 Template:Country data France 26 June 1959
Template:Country data Gabon 15 December 2006 Template:Country data Georgia 2 June 1994
Template:Country data Germany 30 June 1961 Template:Country data Ghana 9 April 1968
Template:Country data Greece 16 July 1962 Template:Country data Guatemala 21 March 1984
Template:Country data Guinea 23 January 1991 Template:Country data Guyana 25 September 2014
Template:Country data Haiti 5 December 1983 Template:Country data Holy See 14 May 1975
Template:Country data Honduras 3 October 2000 Template:Country data Hungary 5 March 1962
Template:Country data Iceland 24 January 2002 Template:Country data India 13 July 1960
Template:Country data Indonesia 7 October 1981 Template:Country data Iran 15 October 2001
Template:Country data Iraq 11 November 2021 Template:Country data Ireland 12 May 1981
Template:Country data Israel 5 January 1959 Template:Country data Italy 31 January 1969
Template:Country data Jamaica 10 July 2002 Template:Country data Japan 20 June 1961
Template:Country data Jordan 15 November 1979 Template:Country data Kazakhstan 20 November 1995
Template:Country data Kenya 10 February 1989 Template:Country data South Korea 8 February 1973
Template:Country data Kuwait 28 April 1978 Template:Country data Kyrgyzstan 18 December 1996
Template:Country data Laos 17 June 1998 Template:Country data Latvia 14 April 1992
Template:Country data Lebanon 11 August 1998 Template:Country data Lesotho 13 June 1989
Template:Country data Liberia 16 September 2005 Template:Country data Lithuania 14 March 1995
Template:Country data Liechtenstein 5 October 2011 Template:Country data Luxembourg 9 September 1983
Template:Country data Republic of Macedonia 10 March 1994 Template:Country data Madagascar 16 July 1962
Template:Country data Malaysia 5 November 1985 Template:Country data Malawi 4 March 2021
Template:Country data Maldives 17 September 2019 Template:Country data Mali 8 September 1994
Template:Country data Malta 22 June 2000 Template:Country data Marshall Islands 21 December 2006
Template:Country data Mauritania 30 January 1997 Template:Country data Mauritius 19 June 1996
Template:Country data Mexico 14 April 1971 Template:Country data Moldova 18 September 1998
Template:Country data Monaco 2 June 1982 Template:Country data Mongolia 24 October 1994
Template:Country data Montenegro 23 October 2006 Template:Country data Morocco 12 February 1959
Template:Country data Mozambique 11 June 1998 Template:Country data Myanmar 16 April 2013
Template:Country data Nepal 4 March 1998 Template:Country data Netherlands 24 April 1964
Template:Country data New Zealand 6 January 1983 Template:Country data Nicaragua 24 September 2003
Template:Country data Niger 14 October 1964 Template:Country data Nigeria 17 March 1970
Template:Country data Norway 14 March 1961 Template:Country data Oman 25 February 1999
Template:Country data Pakistan 14 July 2005 Template:Country data Palau 31 March 2020
Template:Country data Palestine 2 January 2015 Template:Country data Panama 10 October 1984
Template:Country data Papua New Guinea 17 July 2019 Template:Country data Paraguay 8 October 1997
Template:Country data Peru 7 July 1988 Template:Country data Philippines 6 July 1967
Template:Country data Poland 3 October 1961 Template:Country data Portugal 18 October 1994
Template:Country data Qatar 30 December 2002 Template:Country data Romania 13 September 1961
Template:Country data Russia 24 August 1960 Template:Country data Rwanda 31 October 2008
Template:Country data Saint Vincent and the Grenadines 12 September 2000 Template:Country data San Marino 17 May 1979
Template:Country data Sao Tome and Principe 20 November 2012 Template:Country data Saudi Arabia 19 April 1994
Template:Country data Senegal 17 October 1994 Template:Country data Serbia 12 March 2001
Template:Country data Seychelles 3 February 2020 Template:Country data Sierra Leone 28 October 2020
Template:Country data Singapore 21 August 1986 Template:Country data Slovakia 28 May 1993
Template:Country data Slovenia 6 July 1992 Template:Country data South Africa 3 May 1976
Template:Country data Spain 12 May 1977 Template:Country data Sri Lanka 9 April 1962
Template:Country data Sudan 26 March 2018 Template:Country data Sweden 28 January 1972
Template:Country data Suriname 10 November 2022
Template:Country data Switzerland 1 June 1965 Template:Country data Syria 9 March 1959
Template:Country data Tanzania 13 October 1964 Template:Country data Tajikistan 14 August 2012
Template:Country data Thailand 21 December 1959 Template:Country data Timor-Leste 17 January 2023
Template:Country data Tonga 12 June 2020 Template:Country data Trinidad and Tobago 14 February 1966
Template:Country data Tunisia 17 July 1967 Template:Country data Turkey 2 July 1992
Template:Country data Turkmenistan 4 May 2022 Template:Country data Uganda 12 February 1992
Template:Country data Ukraine 10 October 1960 Template:Country data United Arab Emirates 21 August 2006
Template:Country data United Kingdom 24 September 1975 Template:Country data United States 30 September 1970
Template:Country data Uruguay 30 March 1983 Template:Country data Uzbekistan 7 February 1996
Template:Country data Venezuela 8 February 1995 Template:Country data Vietnam 12 September 1995
Template:Country data Zambia 14 March 2002 Template:Country data Zimbabwe 26 September 1994

The convention has also been extended to a number of British Crown Dependencies, Overseas Territories, Overseas departments, Unincorporated Territories and other subsidiary territories of sovereign states.

Territory Date of Ratification Territory Date of Ratification
Template:Country data American Samoa Template:Country data Aruba 24 April 1964
Template:Country data Ashmore and Cartier Islands Template:Country data Australian Antarctic Territory
Template:Country data Baker Island Template:Country data Bermuda 14 November 1979
Template:Country data Bonaire 24 April 1964
Template:Country data British Virgin Islands 25 May 2014 Template:Country data Christmas Island 26 March 1975
Template:Country data Cayman Islands 26 November 1980 Template:Country data Cocos (Keeling) Islands 26 March 1975
Template:Country data Coral Sea Islands Template:Country data Curaçao 24 April 1964
Template:Country data Faroe Islands 10 February 1976
Template:Country data French Guiana Template:Country data French Polynesia 26 June 1959
Template:Country data French Southern and Antarctic Lands Template:Country data Gibraltar 24 September 1975
Template:Country data Greenland 10 February 1976 Template:Country data Guadeloupe
Template:Country data Guam 30 September 1970 Template:Country data Guernsey 19 April 1985
Template:Country data Heard Island and McDonald Islands Template:Country data Howland Island
Template:Country data Isle of Man 22 February 1979 Template:Country data Jarvis Island
Template:Country data Jersey 19 April 1985 Template:Country data Johnston Atoll
Template:Country data Kingman Reef Template:Country data Martinique
Template:Country data Mayotte Template:Country data Midway Atoll
Navassa Island Template:Country data New Caledonia 26 June 1959
Template:Country data Norfolk Island Template:Country data Palmyra Atoll
Template:Country data Puerto Rico Template:Country data Réunion
Template:Country data Saba 24 April 1964 Template:Country data Saint Pierre and Miquelon
Template:Country data Sint Eustatius 24 April 1964 Template:Country data Sint Maarten 24 April 1964
Template:Country data United States Virgin Islands Template:Country data Wake Island
Template:Country data Wallis and Futuna

States which are not party to the Convention

Template:Country data Equatorial Guinea Template:Country data Eritrea Template:Country data Eswatini formerly Swaziland
Template:Country data Gambia Template:Country data Grenada Template:Country data Guinea-Bissau
Template:Country data Kiribati Template:Country data Libya Template:Country data Federated States of Micronesia
Template:Country data Namibia Template:Country data Nauru Template:Country data Niue
Template:Country data North Korea Template:Country data Saint Kitts and Nevis Template:Country data Saint Lucia
Template:Country data Samoa Template:Country data Solomon Islands Template:Country data Somalia
Template:Country data South Sudan Template:Country data Togo Template:Country data Tuvalu
Template:Country data Vanuatu Template:Country data Yemen

United States issues

Under American law, the recognition of foreign arbitral awards is governed by chapter 2 of the Federal Arbitration Act, which incorporates the New York Convention.[5]

Therefore, the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the "Convention") preempts state law. In Foster v. Neilson, the Supreme Court held "Our constitution declares a treaty to be the law of the land. It is, consequently, to be regarded in courts of justice as equivalent to an act of the Legislature, whenever it operates of itself without the aid of any legislative provision."[6] Thus, over a course of 181 years, the United States Supreme Court has repeatedly held that a self-executing treaty is an act of the Legislature (i.e., act of Congress).

With specific regard to the New York Convention, at least one court discussed, but ultimately avoided, the issue of whether the treaty is self-executing. The court nonetheless held that the convention was, at the least, an implemented non-self-executing treaty that still had legal force as a treaty (as distinguished from an Act of Congress).[7] Based on that determination, the court held that the Convention preempted state law that sought to void arbitration clauses in international reinsurance treaties.

See also

References

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External links

  1. ↑ a b Script error: No such module "Citation/CS1".
  2. ↑ Script error: No such module "Citation/CS1".
  3. ↑ Script error: No such module "citation/CS1".
  4. ↑ Script error: No such module "citation/CS1". New York Convention, 1958 – Reservations
  5. ↑ Script error: No such module "citation/CS1".
  6. ↑ Foster v. Neilson, 27 U.S. 253, 314 (1829). See also Valentine v. U.S. ex rel. Neidecker, 57 S.Ct. 100, 103 (1936); Medellin v. Dretke, 125 S.Ct. 2088, 2103 (2005); Sanchez-Llamas v. Oregon, 126 S.Ct. 2669, 2695 (2006).
  7. ↑ Safety National Casualty Corp. v. Certain Underwriters at Lloyd's, London, 587 F.3d 714 (5th Cir. 2009) (en banc), cert. den'd, 562 U.S. 827 (2010).
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