ABOUT ACICA

The Australian Centre for International Commercial Arbitration (ACICA) is Australia's only international arbitral institution. Established in 1985 as a not-for-profit public company, its membership includes world leading practitioners and academics expert in the field of international and domestic commercial arbitration and all forms of dispute resolution.

A major partner of Australia's premier disputes resolution venue,  the Australian International Disputes Centre,  ACICA is a signatory to co-operation agreements with over 50 global arbitral bodies including the Permanent Court of Arbitration at The Hague. 

On 2 March 2011, the Australian Government confirmed ACICA as the sole default appointing authority competent to perform the arbitrator appointment functions under the amended International Arbitration Act 1974 (Cth).

On 30 August 2011, ACICA launched it Arbitration Rules incorporating the Emergency Arbitrator Provisions - a first for an Australian arbitral body.

Designed to speed up the resolution of cross border and international commercial disputes, this innovation provides parties with greater flexibility including an option to seek emergency interim measures of protection from an emergency arbitrator before the arbitral tribunal is constituted.

Damian Lovell, Vice President of Litigation of BHP Billiton, who is responsible for the dispute resolution strategy for the world’s largest diversified mining company, said it is standard practice for BHP Billiton to include arbitration clauses in its cross border contracts:

"We see international arbitration as an integral part of our global dispute resolution strategy. We commend ACICA’s initiative in producing these rules which is consistent with this strategy."

ACICA has also developed the Appointment of Arbitrators Rules 2011 which establish a streamlined process through which a party can apply to have an arbitrator appointed to a dispute seated in Australia. A board comprising representatives of the Attorney-General of Australia, the Chief Justices of the High Court and Federal Court, the President of the Australian Bar Association, the President of the Law Council of Australia and industry representatives will oversee the appointment process.

WHAT IS INTERNATIONAL ARBITRATION?

International Arbitration is a system of dispute resolution selected by many of the world's leading international companies. Most importantly arbitration agreements and arbitral awards are enforceable worldwide under an international law known as the New York Convention.

By inserting an arbitration clause into their agreements with trading partners, parties opt to have disputes arising out of or in connection with the contract decided by private tribunals ('arbitral tribunals') rather than litigating them in national courts. Arbitration is particularly common in the insurance, construction and engineering, oil, gas and shipping industries and increasingly so, in banking and financial services.

In 2008 a PricewaterhouseCoopers Global Survey, 'International Arbitration: Corporate Attitudes and Practices', revealed consumers of arbitration services favoured international arbitration because it was a means to successfully preserve business relationships.

LEGAL FRAMEWORK OF INTERNATIONAL ARBITRATION IN AUSTRALIA

In general international arbitrations in Australia are governed by federal legislation, the International Arbitration Act 1974 (Cth). The Act incorporates an internationally accepted law on arbitration known as the UNCITRAL Model Law on International Commercial Arbitration. However, parties are permitted to exclude this law. Where they do so the arbitration will be governed by the Commercial Arbitration Act of the State or Territory where the arbitration is held.

In addition to giving force of law in Australia to the UNCITRAL Model Law, the International Arbitration Act implements two international conventions. The first is the New York Convention, which provides for the international enforcement of arbitration agreements and awards. The second is the Washington Convention which provides for a special system of arbitration for disputes between States (countries) and foreign investors.

Reforms to Australian arbitration laws

On 22 June 2010, the NSW Parliament passed the Commercial Arbitration Act 2010, which amends NSW law applying to domestic arbitrations to harmonise it with the law applying to international arbitration.

The NSW law is based on Model Law agreed to by all jurisdictions, and will ensure Australia has uniform laws applying to all domestic and international arbitrations.

These reforms provide the framework for internationally experienced arbitrators to resolve local, cross-border and international disputes on Australian territory.