Rethinking International Commercial Arbitration Towards Default Arbitration

International Commercial Arbitration

International Commercial Arbitration as a standard International Economic Dispute Resolution Mechanism

International commercial arbitration is currently the most accepted dispute resolution tool globally. Many investors have found international arbitration as an assurance to invest in host states, which naturally drives global economic growth. International arbitration serves as a continuum tool for the national courts, especially in the areas where they are limited. Also, it is an independent tool that provides more neutrality, confidence and speedy resolution.

International arbitration is also reliable because it gives the contracting powers a lot of power to decide how their case will need to be handled, including choosing their arbitral seat.

Certain factors currently make international commercial arbitration the most suitable resolution mechanism. The international-based laws, the arbitral clause, and the procedural process.

The Current Need for Consent and Arbitral Clause

With all the good that international commercial arbitration brings to the table, it must be deliberately employed by the contracting parties before its advantage can be harnessed. The ability to do so depends on an arbitral clause and a well-drafted contract.

international commercial arbitration

Without an arbitral clause in a contract that both parties must consent to, international arbitration cannot be seen as a possible tool to employ whenever a dispute arises. While this condition seems straightforward, it can also be confusing as it means investors must have to determine the right arbitral clause to pick as it relates to their type of contract.

There has been advocacy for the arbitral clause inclusion condition in the contract before arbitration can be employed should be reduced to a good level. The next section will highlight this trend and its importance in the future of international commercial arbitration.

The Proposition for Default Implementation

Over the years, international arbitral cases have continued to grow steadily to almost exponentially. This trend proves that many contracting parties are accepting it as the most viable form of resolving disputes. These days, it is extremely difficult to see an economic contract between two foreign entities without an arbitral clause added to it.

Alongside the rise in international arbitration acceptance is the continuous improvement of the system. Different procedural modifications have been implemented to make the entire process from hearing to award enforcement as quickly as possible. Also, technological concepts have been employed in the system, including remote hearing, better cyber security and partial use of AI.

With all of these growth indices, many experts have been pushing for international commercial arbitration to be a default resolution mechanism tool. This sentiment has been shared for decades now. However, with the consistent expansion of countries’ acceptance of the system and its unique neutral platform, the call for it to be a default tool has only grown bigger.

The book by Gilles Cuniberti, which inspired this piece’s title, explained why international commercial arbitration being a default tool would be good for global economic growth, better business opportunities and more bilateral tolerance between countries.

There are many advantages that come with international commercial arbitration, and while they’re still theory, it is clear that it will be beneficial for the arbitral tribunal and the disputing parties. Some of the benefits of the system becoming a default economic tool include.

Fairness and Neutrality for all International Economic Contracts

The benefit of international arbitration becoming a default system is that it will provide a fair and neutral ground for all parties whenever disputes arise. Many investors are often wary of being subjected to losses by hurtful policies. However, with international commercial arbitration being the standard for dispute resolution, there will be a good chance of being offered a fair decision.

Pushes for Cooperation from Parties

The default arbitration clause in contracts will bring to the contracting parties the need to fulfill their responsibilities, as a breach can attract financial consequences and a tainted reputation. These almost assured consequences make it difficult for disputing parties to breach their contract deliberately.


International commercial arbitration is extremely important in settling international economic disputes. Whether it is between disputes between several states, international companies or between state and private firms, the international arbitration dispute mechanism works well. Due to this reason, the push by experts and scholars to make this system an international default resolution tool has only grown by the year.

For now, though, some barriers still exist to break, but all trends show that the push for a default arbitration mechanism will soon become a reality. Until then, investors and states will continue to include arbitral clauses in their contracts if they want to enjoy the benefits of neutrality, fairness and transparency.
With this current situation, getting a well-drafted contract becomes very important. Generally, including an arbitral clause in a contract is a process that professional arbitrators must carry out to create the perfect bulletproof for all forms of negative surprises. The good thing is that there are firms that offer expert arbitral services inducing drafting the perfect contact.

Rättsakuten is one of the best firms to get expert arbitrators with unrivaled experience in drafting favorable contracts that give their clients the edge. You can reach the company for all your inquiries and professional counsel.

About Rättsakuten

Rättsakuten is a leading law firm focused on Commercial Arbitration and Dispute Resolution. Based in Sweden, Rättsakuten handles dispute resolution and Arbitration matters before the SCC (Swedish Chamber of Commerce), ICC, HKIAC and several other Arbitration tribunals.

Fredrik Jörgensen

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