Event Wrap Up: International Arbitration in the South Pacific

On 17 February 2021, ACICA held an event titled International Arbitration in the South Pacific. The expert speakers were joined by Guest Speaker, the Honourable Deputy Chief Justice Ambeng Kandakasi CBE, who provided his insights on the progress made in international arbitration in Papua New Guinea.

International arbitration in the South Pacific

At present, there are eight countries from the South Pacific region which have acceded to the New York Convention. Three of those accessions (Palau, Tonga and Papua New Guinea) have taken place in the past two years.

A strong international arbitration framework with minimal curial intervention is necessary for procuring foreign direct investment and improving existing investor confidence. To this end, the Asian Development Bank has implemented a “technical assistance” program that will strengthen capacity for international arbitration reform in the region.

Australia’s role

Australia’s proximity, stable political environment, robust legislative framework and resilient economy make it an attractive hub for international arbitration and enable it to interact with the South Pacific region in trade and development more generally.

By way of example, Australia’s Department of Foreign Affairs and Trading is implementing the Australian Infrastructure Financing Facility for the Pacific, which will provide financing for projects that are socially inclusive, resilient and create lasting prosperity for citizens of the region.

Of further note is the Pacific Agreement on Closer Economic Relations Plus, a regional development-centred free trade agreement covering goods, services and investment, which entered into force on 13 December 2020 with eight countries (including Australia) as parties.

Australian arbitration institutions and practitioners are playing an increasingly significant part in promoting awareness of arbitration in the region. Initiatives like the Third South Pacific International Arbitration Conference, which will be held in Sydney on 17 March 2021, will hopefully accelerate the progression of international arbitration in the region.