Latest News

Arbitration: International Commercial

Arbitration: International Commercial 

In the developed world, the importance and long-term implications of the efficient settlement of trade disputes are undoubted. Until relatively recently, a small number of national court systems that have historically captured the bulk of such disputes have come under the main burden. Economic liberalization and technological transition, however, have significantly altered the global economy over the last two decades. Via international expansion, cross-border alliances, and joint ventures of every kind, the business has responded. Together with the complexities of unclear court systems and various processes, this modern "internationality" of industry and trade patterns has propelled the growth of international arbitration. Against this context, as a favored conflict settlement mechanism for international disputes, Canadian companies, politicians, courts, and lawyers gradually accept, accommodate, respect, and turn to arbitration.  

This has meant that, since the mid-1980s, the importance of domestic and international commercial arbitration in Canada has increased dramatically. Arbitration in Canada, or involving Canadian properties, has become even more attractive with the introduction of both the UNCITRAL Model Law on International Commercial Arbitration (the 'Model Law') and the New York Convention in1986, along with a drastic rise in judicial deference to arbitral tribunals. At the same time, development was also catalyzed by the increased involvement of Canadian companies in cross-border operations and the adoption of the North American Free Trade Agreement, with its investor/state dispute settlement requirements under Chapter 11. 

Law on Arbitration 

Canada is a federal state whose constitutional particularities offer the laws regulating commercial arbitration the appearance of ambiguity. Though laws have been passed federally and by each of the ten provinces and three territories of Canada, the ambiguity is more evident than actual. The laws of the different jurisdictions are surprisingly similar, as a matter of practice. Differences that do exist are not material enough to promote shopping on the forum. Each of the provinces and territories of Canada has two arbitration laws, with the exception of Quebec: one for domestic arbitration and one for international arbitration. 

The Commercial Arbitration Act (R.S.C.1985, c.C-34.6), the applicable federal law, controls all domestic and international commercial arbitrations but is limited to disputes involving the federal government, federal Crown corporations, and certain federal agencies mentioned. Provincial or municipal law controls all such arbitrations.  

Court decisions are essential sources of law regulating arbitration, particularly as the law is interpreted by the decisions. And, while Quebec is jurisdiction under civil law, court decisions in Quebec appear to play a greater role than they do in other jurisdictions under civil law. At the same time, the definition of doctrine in civil law plays a more significant role in Quebec than it does in the rest of Canada. 

Principal Institutions 

The AAA, the ICC, and the LCIA all have a direct or indirect presence in Canada: the LCIA through its North American Users' Council representation in Canada, the ICC through its Canadian National Committee, and the AAA through the participation of Canadian representatives on its distinguished neutral panel. With the expertise, staff, and facilities to conduct either domestic or international arbitrations, three provinces host successful arbitration institutions. In Ontario, for the ADR Institute of Canada, Ottawa; and for ADR Chambers, Toronto. See the Quebec National and International Centre for Arbitration in Quebec, Montreal,


This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.

  • Law on Arbitration
  • Principal Institutions
  • -

BY : Shivani Kinniwadi

All Latest News