Importance, Efficacy And Role That The Arbitration Pact Plays In The Achievement Of International Businesses

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Importance, efficacy and role that the arbitration pact plays in the achievement of international businesses

Introduction

During the last three decades the qualitative changes in the relations of the international community have been increasingRequirements for the operation and coherence of the international economic space, that is, with respect to the international criteria for circulation and valorization of capital in which all its world components are interdependent, that is, it is about the contemporary manifestations of the evolution of the economic phenomenonTransnational globalization (Peemans, 1996, pp. 16-19).

International arbitration

Seen from the juridicity of its functions, international arbitration is considered the extrajudicial resolution method of controversies between two or more parts, by acting one or more people (referee or referees), who derive their powers from the agreement between the parties between the parties, as well as the recognition of its functions by law (Monroy Cabra, 1998, p. 23). The general concept of arbitration as an extrajudicial and alternative device mechanism for conflict resolution, as a device instrument, then derives its functions of the will of the parties, in this case, in relation to international affairs, where the definition ofThe controversy is in charge of one or more referees when uttering a sentence, which in the arbitration is called award (Botero and Correa, 2004, p. 19).

Based on the governing principle of arbitration, the autonomy of the will (Mezgravis, 1999, p. 210), international arbitration leaves the parties to choose a method of dispute solution according to its will, which means in practice the power to choose the applicable law, as well as aspects that include the language in which it will be processedThe procedure, the same as the arbitral headquarters. That is, as the parties are the ones that voluntarily decide to submit to arbitration, therefore, the referees and the parties choose the procedure to follow. In addition, the arbitral awards are binding for the parties, being the subject of resources only for few causes, according to international legislation on current arbitration for most countries, all of which contributes to the approval of the advantages of arbitration by the interested parties.

Among the functions of a lawyer specialized in international business is the ability to lead international arbitration processes, an extrajudicial resolution mechanism that every day takes more strength thanks to its speed, flexibility and neutrality.

Arbitration is an alternate route to judicial processes, which seeks to resolve commercial disputes between companies with a contractual relationship, through an agreement that offers a solution to the conflict. International arbitration is considered the processes where parties have their origin or residence in different countries.

When the negotiation phase between the parties involved is not resolved successfully, they can voluntarily request the submission to arbitration and choose the language, place, law and the referee that will carry the process, and who will be responsible for reaching the agreement thatRespond to the interests of all parties.

International organizations in charge of arbitral processes

In the international arena, the arbitration processes are regulated by agreements, international treaties and organizations, among which the following stand out:

• The United Nations Commission for International Commercial Law.
• The Inter -American Commission for Commercial Arbitration.
• London Court of International Arbitration (LCIA).
• International Chamber of Commerce (CCI).
• International Center for Arrangement of Investment Relative (ICSID).

What is international arbitration for?

As mentioned above, arbitration is a simple and efficient option against ordinary courts of justice. Some of the most important advantages of this mechanism are:

• The simplicity of the procedure for conflict resolution.
• It is a much faster mechanism than traditional judicial processes.
• The parties can choose between a single referee or an arbitral tribunal, according to the complexity of the case.
• The referees have greater freedom in the application of the legal norms than the judges.
• The referees are neutral by not being linked to the judicial organs of the countries of origin of the parties involved.
• While judicial processes must be submitted to the principle of advertising, arbitration processes can be taken at absolute confidentiality.

In conclusion, this process is very important for companies that have been internationalized and want to efficiently resolve commercial conflicts.

Advantages of arbitration

The advantages of arbitration that make it a good alternative to the judicial route:

1. Specialty: The parties will choose the members of the arbitral tribunal, who will be specialized professionals in the matter of the dispute.
2. Duration: In accordance with article 11 of Law 1563 of 2012, the term of the arbitration process is six (6) months from the end of the first processing hearing, except for the opposite.
3. The arbitral award, which ends the controversy, provides executive merit and makes transit to a judged thing, such as a judicial sentence.
4. The arbitration process is confidential.

Conclusions

Transnational commercial relations, in their complex magnitude, always growing in the context of globalization, have demonstrated, with their widespread use, the efficiency of international commercial arbitration and its effectiveness in the legal spaces of execution in the respective states. In a world environment of multiplication of commercial relations, international commercial arbitration acts promptly and fully between different cultures and legal traditions, making it possible for the parties to choose the most appropriate procedure to the respective controversy, precisely because of their great flexibility and efficiency asAlternative conflict resolution procedure.

It is observed, consequently, that the development of international commercial arbitration must correspond to the evolution of an international economic right of new type, which for its legal efficacy must operate as an agile, timely and efficient arbitration institution, as it is an alternative mechanism ofJustice that solves with prudence and knowledge the controversies that are generated in the environment of international commercial relations. The problem about arbitral headquarters and relocation arises, the topic in which two antagonistic positions are presented that postulate paths well differentiated philosophical conceptions about arbitration. One, openly territorialist, which considers the headquarters as an essential element of arbitration;The other, in favor of relocation, argues that the headquarters is nothing more than a parameter in the middle of others.