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Arbitration is losing its reputation as a more cost-effective and efficient from of dispute resolution, according to arbitration experts.
Arbitration is losing its reputation as a more cost-effective and efficient from of dispute resolution, according to arbitration experts.
Surging ahead
Despite these concerns, international commercial arbitration in the Asia-Pacific region continues to grow at a significant rate – something Jones described as “extraordinary”.
Much of that growth is due to the establishment of bodies such as the Asia Pacific Regional Arbitration Group (APRAG), which, since its establishment in November 2004, has attracted 38 arbitral institutions across the Asia Pacific and is the largest group of its kind in the region.
Rajoo said that while competition for work in the Asia-Pacific region is fierce, Commonwealth nations must cooperate if they are to emerge as the most attractive destination for international arbitration.
“We are all competing, but there is a need to cooperate so we can be on par with the European institutions, promote international arbitration in the region and enhance our knowledge,” he said. There is a collective and shared interest.”
This cooperation, said Baykitch, is effectively changing the international arbitration world order.
“There is no reason, other than habit, why contracts between Asian and non-Asian parties are more likely to be arbitrated in Europe or the US,” he said.
“It is no longer justified. It makes little economic sense for Asian parties to go outside of Asia. Europe and the US no longer have a stranglehold. Arbitrators are even flying into Asia and setting up chambers there.”