THE UNITED NATIONS COMMISION

ON INTERNATIONAL TRADE LAW

(UNCITRAL) Model Law on
International Commercial Arbitration

ATTY. CHERYL T. LIMBING

ADR-LLM Class
2019-2020
• The UNCITRAL Model Law on
International Commercial
Arbitration was adopted by the
UNCITRAL on 21 June 1985.
• The General Assembly, in its
Resolution dated 11 December
1985 recommended “that all
States give due consideration to
the Model Law on International
Commercial Arbitration in view of
the desirability of uniformity of the
law of arbitral procedures and the
specific needs of international
commercial arbitration practice.”
I. BACKGROUND TO THE MODEL LAW

--The Model Law is designed to meet concerns

relating to the current state of national laws on
arbitration.
A. Inadequacy of domestic laws.

B. Disparity between national laws

 Congress enacted R.A. No. 9285
specifically to adopt the UNCITRAL
Model Law on International
Commercial Arbitration jjjjjjjjjjjjjjjjjjjjjjjj
Definitions

Arbitration

“a voluntary dispute resolution process in which

one or more arbitrators, appointed in accordance
with the agreement of the parties, or rules
promulgated pursuant to this Act, resolve a dispute
by rendering an award;. (Sec. 3(d), RA9285)
Arbitration

 Agreement based.

 Merit or evidence based form of ADR.

 Requires the testimony of witnesses and

the presentation of evidence

 a decision (award) is rendered.

Arbitration is a creature of contract
(adopted in UNCITRAL in 1985)

an arbitration is international if:

1. the parties to an arbitration agreement have, at the

time of the conclusion of that agreement, their
places of business are in different States, or
2. one of the following places is situated outside
the State in which the parties have their places
of business:

i) the place of arbitration if determined in, or

pursuant to, the arbitration agreement

ii) any place where a substantial part of the

obligations of the commercial relationship is
to be performed or the place with which the
subject-matter of the dispute is most closely
connected; or
3. the parties have expressly agreed that the subject
matter of the arbitration agreement relates to
more than one country.

Commercial –any international arbitration between

companies where the dispute is economic in
character will be considered to be commercial.
IMPORTANT CONCEPTS

Sovereignty
- supreme power
- freedom from external control

Jurisdiction
- the power, right, or authority to interpret and
apply the law.
- the authority of a sovereign power to govern or
legislate.
United Nations Commission on
International Trade Law (UNCITRAL)

• Established in 1966
• Reasons:
• Dramatic expansion of world trade
• Need for uniform rules for international trade
• Trade creates wealth
• Trade is essential to the economic stability
• Promotes world peace
Trade law and the UN

The UN… will employ international machinery

for the promotion of the economic and social
advancement of all peoples (Preamble of the UN
Charter, 1945)

Develop further an open trading and financial

system that is rule-based, predictable and non-
discriminatory... [MDG 8 – Target 12, 2000]
Mandate of UNCITRAL
Facilitate International Trade

• Coordinate work of organizations in the field of

international trade law

• Prepare and/or promote Conventions and Model

Laws and ensure their uniform interpretation

• Collect and disseminate information on

developments in the field of international trade law
 The Role of UNCITRAL

NOT INVOLVED IN INVOLVED IN

• Settling disputes between • Promoting the unification &

States harmonization of the law of
international trade and assisting in
• Settling disputes between domestic law reform (legislative
private parties work)
• Strengthening uniform application
• Providing legal advice on & interpretation of the instruments
disputes to parties adopted (technical assistance)
• Coordinating the work of other
similar organizations (cooperation
with UN and non-UN bodies
/organizations)
Membership of UNCITRAL

• 60 member States

• Elected by the UN General Assembly for a

term of 6 years
• Every 3 years terms of half the members
expire
• Ensure representation of the world’s
various geographic regions and its principal
economic and legal systems
WORK OF UNCITRAL OUTCOME

Convention
An agreement among States establishing obligations
binding upon those States that ratify or acceded to
it.

Model Law
A set of model legislative provisions that States can
adopt by enacting it into national law.
WORK OF UNCITRAL OUTCOME

Contractual rules
Standard clauses or rules designed to be
included in commercial contracts.

Legal guide
A text that provides guidance for the drafting
of contracts, discussing relevant issues and
recommending solutions appropriate to
particular circumstances.
International Commercial Arbitration

United Nations Convention on the

Recognition and Enforcement of Foreign Arbitral
Awards

The New York Convention

145 Signatories
as of March 2011
The New York Convention

• Adopted in 1958

• Ensures recognition and

enforcement of foreign arbitral
awards (Article I, III)

• Gives effect to arbitration clause

(Article II (3))

• Limits grounds for denial of

enforcement (Article V)
 The New York Convention

• shall apply to the recognition and enforcement of

arbitral awards made in the territory of a State other
than the State where the recognition and
enforcement of such awards are sought, and arising
out of differences between persons, whether
physical or legal.

• shall also apply to arbitral awards not considered as

domestic awards in the State where their
recognition and enforcement are sought.
New York Convention: Status

Universal acceptance: 146 Parties

Model Law on Arbitration

• Adopted in 1985, amended in

2006
• A framework for the conduct of
arbitral proceedings
• Consistent with the New York
Convention
• Reflects world wide consensus
• Form of Model Law
 Model Law: Main Purpose

• Reduce discrepancy between domestic

procedural laws affecting international
commercial arbitration

Uniform interpretation and application of

the Model Law = equally important
 Model Law: Status

Covers more than 1/3 of the world’s territory: 90 jurisdictions

***USA: California, Connecticut, Florida, Illinois, Louisiana, Oregon, Texas
Arbitration institutions
- National arbitration institutions and similar, main institutions:
 LCIA (London Court of international arbitration)(an English company)
 CIETAC (China international Economic and Trade Arbitration Commission)
 Swiss Chambers’ Arbitration Institution (Swiss rules)
 SCC (Stockholm Chamber of Commerce)
 Paris Arbitration Rules
 VIAC (Vienna International Arbitral Centre)
 Cepina (Belgium)
 AAA (American Arbitration Association) and its International Centre for Dispute Resolution
(ICDR)
 DIAC (Dubai International Arbitration Centre)
 DIS (German Institution of Arbitration)
 KLRCA (Kuala Lumpur Regional Centre for Arbitration)
 MKAS (Moscow International Commercial Arbitration Court)
 SIAC (Singapore International Arbitration Centre)
II. SALIENT FEATURES OF THE MODEL LAW
A. Special Procedural Regime for International
Commercial Arbitration
Substantive and territorial scope of application
Delimitation of court assistance and supervision
II. SALIENT FEATURES OF THE MODEL LAW
B. Arbitration Agreement
Definition and form of arbitration agreement
Arbitration agreement and the courts
II. SALIENT FEATURES OF THE MODEL LAW
C. Composition of Arbitral Tribunal

Chapter III contains a number of detailed provisions

on appointment, challenge, termination of mandate
and replacement of an arbitrator.
II. SALIENT FEATURES OF THE MODEL LAW
D. Jurisdiction of Arbitral Tribunal

Competence to rule on own jurisdiction Composition

of Arbitral Tribunal
Power to order interim measures
II. SALIENT FEATURES OF THE MODEL LAW
E. Conduct of Arbitral Proceedings

Fundamental procedural rights of a party

Determination of rules of procedure
Default of a party
II. SALIENT FEATURES OF THE MODEL LAW
F. Making of Award and Termination of Proceedings

Rules applicable to substance of dispute

Making of award and other decisions
II. SALIENT FEATURES OF THE MODEL LAW
G. Recourse Against Award

Application for setting aside as exclusive recourse

Grounds for setting aside
II. SALIENT FEATURES OF THE MODEL LAW
H. Recognition and Enforcement of Awards

Towards uniform treatment of all awards irrespective

of country of origin
Procedural conditions of recognition and enforcement
 Grounds for refusing recognition or enforcement
THANK YOU!