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Exploring the Key Features of the UNCITRAL Arbitration Rules: A Comprehensive Guide

Exploring the Key Features of the UNCITRAL Arbitration Rules: A Comprehensive Guide

Welcome to our comprehensive guide on the key features of the UNCITRAL Arbitration Rules. In this article, we will delve into the various aspects and provisions of the UNCITRAL Arbitration Rules, shedding light on their significance and relevance in international commercial arbitration.

1. Introduction to the UNCITRAL Arbitration Rules

The UNCITRAL Arbitration Rules, developed by the United Nations Commission on International Trade Law (UNCITRAL), serve as a widely recognized framework for resolving disputes arising from international commercial contracts. These rules provide parties with a flexible and neutral mechanism for settling their disputes through arbitration.

Arbitration under the UNCITRAL Arbitration Rules offers several advantages, including confidentiality, enforceability of awards, and the ability to select arbitrators with specific expertise. Understanding the key features of these rules is essential for anyone involved in international commercial transactions.

2. Key Features of the UNCITRAL Arbitration Rules

2.1 Applicability and Scope

The UNCITRAL Arbitration Rules are applicable to both international and domestic arbitrations. They can be incorporated by agreement into arbitration clauses or invoked by parties during the dispute resolution process. The rules cover various stages of arbitration, including the commencement of proceedings, appointment of arbitrators, conduct of hearings, and issuance of awards.

2.2 Appointment of Arbitrators

One of the key features of the UNCITRAL Arbitration Rules is the flexibility provided in the appointment of arbitrators. Parties are free to agree on the number of arbitrators and the method of their appointment. In case of disagreement, a default mechanism is provided for the appointment of arbitrators by an appointing authority.

2.3 Conduct of Proceedings

The UNCITRAL Arbitration Rules ensure that the proceedings are conducted in a fair and efficient manner. Parties have the right to be heard, present evidence, and cross-examine witnesses. The rules also allow for the use of written submissions, expert opinions, and other evidentiary tools to support the parties’ arguments.

2.4 Interim Measures and Preliminary Orders

To preserve the status quo and protect the rights of the parties during the arbitration process, the UNCITRAL Arbitration Rules empower arbitrators to grant interim measures and preliminary orders. These measures can include injunctions, asset freezes, or the preservation of evidence.

2.5 Award and Enforcement

Once the arbitration proceedings are concluded, the arbitrators issue an award. The UNCITRAL Arbitration Rules provide a clear framework for the content and form of the award. The award is final and binding on the parties, and its enforcement can be sought in domestic courts under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

3. FAQs

  • Q: What is the role of the UNCITRAL in international arbitration?
  • A: The UNCITRAL plays a crucial role in the development and harmonization of international trade law, including arbitration. It has developed various rules and guidelines, such as the UNCITRAL Model Law on International Commercial Arbitration, to promote uniformity and efficiency in cross-border dispute resolution.
  • Q: Are the UNCITRAL Arbitration Rules binding on the parties?
  • A: The UNCITRAL Arbitration Rules are binding only if the parties have agreed to incorporate them into their arbitration agreement or if they have expressly agreed to apply these rules during the course of the arbitration proceedings.
  • Q: Can parties choose their arbitrators under the UNCITRAL Arbitration Rules?
  • A: Yes, parties have the freedom to choose their arbitrators. They can agree on the number of arbitrators and the method of their appointment. If the parties cannot agree, a default mechanism is provided for the appointment of arbitrators.

For more detailed information on the UNCITRAL Arbitration Rules, you can refer to the official UNCITRAL website here. Additionally, you may find this article on Exploring the Key Features of the UNCITRAL Arbitration Rules helpful in gaining further insights into the topic.


Understanding the ICSID: Facilitating Investor-State Dispute Settlement


Understanding the ICSID: Facilitating Investor-State Dispute Settlement

Introduction:

In the complex realm of international business, disputes between investors and states can arise, leading to significant challenges and potential financial losses. To address these issues and facilitate a fair resolution process, the International Centre for Settlement of Investment Disputes (ICSID) plays a crucial role. This article aims to provide a comprehensive understanding of the ICSID, its functions, and the mechanisms it employs to facilitate investor-state dispute settlement.

What is the ICSID?

The International Centre for Settlement of Investment Disputes (ICSID) is an autonomous institution established in 1966 under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. Its primary objective is to provide a platform for the settlement of investment disputes through arbitration and conciliation processes. The ICSID operates under the auspices of the World Bank and has gained prominence as a leading institution in this field.

Functions of the ICSID:

1. Facilitating Arbitration Proceedings:

One of the key functions of the ICSID is to facilitate arbitration proceedings between investors and states. When a dispute arises, either party can initiate arbitration proceedings by submitting a request for arbitration to the ICSID. The ICSID, through its administrative and procedural support, ensures the smooth conduct of the arbitration process.

2. Appointing Arbitrators:

The ICSID maintains a panel of highly qualified and experienced arbitrators from various legal backgrounds. Upon receiving a request for arbitration, the ICSID assists in the appointment of arbitrators who possess relevant expertise in the subject matter of the dispute. This ensures the selection of impartial and knowledgeable arbitrators to preside over the proceedings.

3. Administering Arbitration Proceedings:

The ICSID takes on the administrative role in the arbitration process. It provides facilities, logistical support, and procedural guidance to both parties involved in the dispute. By overseeing the organization and management of the arbitration proceedings, the ICSID contributes to the efficiency and fairness of the process.

4. Enforcing Arbitral Awards:

Once an arbitral tribunal reaches a decision, the ICSID plays a crucial role in enforcing the resulting arbitral awards. Under the ICSID Convention, these awards are binding and enforceable in all member states. The ICSID assists parties in the enforcement process, ensuring that the awards are duly recognized and implemented.

Mechanisms employed by the ICSID:

1. Conciliation:

Apart from arbitration, the ICSID offers the option of conciliation to resolve investment disputes. Conciliation involves the appointment of neutral third-party experts who assist the parties in reaching a mutually agreed settlement. The ICSID acts as a facilitator in the conciliation process, promoting dialogue and cooperation between the investor and the state.

2. Additional Facility Rules:

The ICSID’s Additional Facility Rules provide an alternative mechanism for dispute resolution. These rules allow parties that do not fall under the jurisdiction of the ICSID Convention to access the services and resources offered by the ICSID. This mechanism extends the benefits of the ICSID to a broader range of investors and states.

FAQs:

Q1. How does the ICSID ensure the selection of impartial arbitrators?

A1. The ICSID maintains a diverse panel of arbitrators with extensive legal expertise. Upon receiving a request for arbitration, the ICSID assists in the appointment of arbitrators who possess relevant knowledge and experience in the subject matter of the dispute. This ensures the selection of impartial arbitrators who can fairly adjudicate the case.

Q2. Are the arbitral awards issued by the ICSID enforceable?

A2. Yes, the arbitral awards issued by the ICSID are binding and enforceable in all member states. The ICSID assists parties in the enforcement process, ensuring that the awards are recognized and implemented.

Q3. What is the role of conciliation in the ICSID’s dispute settlement process?

A3. Conciliation is an alternative mechanism offered by the ICSID to resolve investment disputes. It involves the appointment of neutral third-party experts who assist the parties in reaching a mutually agreed settlement. The ICSID acts as a facilitator in the conciliation process, promoting dialogue and cooperation between the investor and the state.

Q4. Who can access the ICSID’s services through the Additional Facility Rules?

A4. The Additional Facility Rules of the ICSID allow parties that do not fall under the jurisdiction of the ICSID Convention to access its services and resources. This mechanism extends the benefits of the ICSID to a broader range of investors and states.

Conclusion:

The ICSID plays a pivotal role in facilitating investor-state dispute settlement by providing a platform for arbitration and conciliation processes. Through its functions of facilitating arbitration proceedings, appointing arbitrators, administering proceedings, and enforcing arbitral awards, the ICSID ensures a fair and efficient resolution of investment disputes. With its mechanisms and expertise, the ICSID continues to contribute to the stability and predictability of international investment. For further information, please refer to this external link: [External Link].

ICSID: Empowering Fair International Investment Dispute Resolution


ICSID: Empowering Fair International Investment Dispute Resolution

Introduction

In today’s interconnected global economy, international investment plays a crucial role in fostering economic growth and development. However, with investments come risks, and disputes arising from these investments can pose challenges to both investors and host states. To address this, the International Centre for Settlement of Investment Disputes (ICSID) was established as an independent institution, providing a platform for fair and effective resolution of international investment disputes. This article explores the role of ICSID in empowering fair international investment dispute resolution, delving into its functions, procedures, and impact.

What is ICSID?

The International Centre for Settlement of Investment Disputes (ICSID) is an international arbitration institution that was established in 1966 as part of the World Bank Group. Its primary purpose is to facilitate the settlement of investment disputes between investors and host states. ICSID provides a neutral and transparent forum where parties can seek resolution through arbitration or conciliation, upholding the principles of fairness, impartiality, and rule of law.

Empowering Fair International Investment Dispute Resolution

ICSID empowers fair international investment dispute resolution through various means:

1. Investor-State Arbitration: ICSID offers a specialized arbitration mechanism for resolving investment disputes between foreign investors and host states. This mechanism ensures that disputes are resolved by independent arbitrators, chosen by the parties involved, who possess expertise in international investment law. The arbitration process is conducted in a transparent and impartial manner, enabling both parties to present their arguments and evidence. This empowers fair resolution by ensuring that decisions are based on legal principles and not influenced by political or economic considerations.

2. Conciliation: In addition to arbitration, ICSID provides a platform for conciliation, which involves a more flexible and consensual process of dispute resolution. Conciliation allows the parties to engage in negotiations with the assistance of a neutral third party, known as a conciliator. This process encourages dialogue and the exploration of mutually acceptable solutions, promoting fair resolution by fostering cooperation and understanding between the parties.

3. Compliance and Enforcement: ICSID’s role extends beyond the resolution of disputes. It also ensures the effective implementation and enforcement of arbitral awards. Once a decision is rendered, ICSID monitors its compliance by both parties, ensuring that the award is respected and enforced. This aspect of ICSID’s mandate strengthens the integrity of the dispute resolution process, empowering fair outcomes and providing a sense of security for investors.

4. Expertise and Resources: ICSID’s expertise in international investment law, coupled with its extensive resources and database of precedents, enhances the quality and consistency of its dispute resolution services. This empowers fair resolution by enabling arbitrators to draw upon legal principles, precedents, and best practices when adjudicating disputes. Furthermore, ICSID’s research and publications contribute to the development of international investment law, fostering a more robust and predictable investment climate.

Frequently Asked Questions (FAQs)

Q1: How does ICSID ensure the independence and impartiality of arbitrators?

A1: ICSID maintains a stringent vetting process for arbitrators, ensuring their independence and impartiality. Arbitrators are selected based on their expertise and experience in international law, and they are required to disclose any potential conflicts of interest. This rigorous process safeguards the integrity of the arbitration proceedings, promoting fair outcomes.

Q2: Can a state refuse to comply with an ICSID award?

A2: While rare, instances of non-compliance with ICSID awards can occur. However, ICSID has mechanisms in place to address non-compliance, including the possibility of invoking the enforcement provisions of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. This ensures that parties have recourse to enforce their rights and encourages compliance with arbitral decisions.

Q3: Is ICSID only accessible to large corporations?

A3: No, ICSID is accessible to both large corporations and smaller investors. Its procedures are designed to be transparent, efficient, and cost-effective, enabling all investors, regardless of their size, to seek resolution of their investment disputes. This inclusivity promotes fair access to justice for all parties involved.

External Links

To further explore the topic of ICSID and fair international investment dispute resolution, you may find the following resources helpful:

1. [Link 1: ICSID Overview](insert link)

2. [Link 2: The Role of ICSID in Investment Dispute Resolution](insert link)

In conclusion, ICSID plays a vital role in empowering fair international investment dispute resolution. Through its specialized mechanisms, commitment to independence and impartiality, and enforcement provisions, ICSID ensures that investment disputes are resolved in a fair and predictable manner. By upholding the principles of transparency, impartiality, and rule of law, ICSID contributes to a more stable and conducive investment climate, fostering economic growth and development.

The Rise of Expedited Arbitration: A Faster and More Efficient Alternative to Traditional Litigation

The Rise of Expedited Arbitration: A Faster and More Efficient Alternative to Traditional Litigation

In recent years, there has been a notable shift towards expedited arbitration as a preferred method for resolving legal disputes. This alternative to traditional litigation offers a faster and more efficient process, providing parties with numerous benefits. In this article, we will explore the rise of expedited arbitration, its advantages, and address some frequently asked questions surrounding this topic.

Understanding Expedited Arbitration

Expedited arbitration is a streamlined approach to dispute resolution that prioritizes efficiency and promptness. Unlike traditional litigation, which often involves lengthy court proceedings, expedited arbitration aims to resolve disputes in a timely manner. This process typically involves a neutral third-party arbitrator who facilitates the resolution of the conflict outside of the courtroom.

Arbitration itself is a form of alternative dispute resolution (ADR) that offers a more flexible and informal setting compared to traditional litigation. It allows parties to present their cases and evidence to an arbitrator, who then makes a binding decision based on the merits of the arguments presented. Expedited arbitration takes this process a step further by expediting the timeline for resolution.

The Advantages of Expedited Arbitration

1. Time Efficiency: One of the primary reasons for the rise of expedited arbitration is its ability to save time. Traditional litigation can often take months, if not years, to reach a resolution. In contrast, expedited arbitration typically concludes within a matter of weeks or months, enabling parties to move forward more swiftly.

2. Cost Savings: Expedited arbitration can also result in significant cost savings compared to traditional litigation. With expedited proceedings, parties can avoid the substantial expenses associated with lengthy court battles, such as attorney fees, court fees, and other related costs. This makes it an attractive option for individuals and businesses seeking a more affordable way to resolve disputes.

3. Flexibility and Informality: Unlike the strict rules and formalities of traditional litigation, expedited arbitration offers a more flexible and informal process. Parties have more control over the procedures, allowing them to tailor the arbitration to their specific needs. This flexibility can lead to a more efficient and satisfactory resolution.

4. Expertise of Arbitrators: In expedited arbitration, parties have the opportunity to select arbitrators who possess expertise in the relevant area of law. This allows for a more specialized decision-making process, ensuring that the arbitrator has a deep understanding of the subject matter at hand. The expertise of the arbitrator can greatly contribute to the efficiency and quality of the resolution.

Frequently Asked Questions about Expedited Arbitration

Q: How is expedited arbitration initiated?

A: Expedited arbitration can be initiated by including a specific clause in a contract or agreement, stating that any disputes arising from the agreement will be resolved through expedited arbitration. Alternatively, parties can agree to expedited arbitration after a dispute arises.

Q: Is the decision reached through expedited arbitration binding?

A: Yes, the decision reached through expedited arbitration is binding, just like in traditional arbitration. Once the arbitrator makes a decision, it is legally enforceable and can be enforced in court if necessary.

Q: Can parties appeal the decision made in expedited arbitration?

A: Generally, the decisions made in expedited arbitration are final and not subject to appeal. This contributes to the overall efficiency of the process, as it prevents prolonged disputes and ensures prompt resolution.

Q: Are there any limitations to the types of disputes that can be resolved through expedited arbitration?

A: While expedited arbitration can be used to resolve a wide range of disputes, certain complex or high-stakes matters may be better suited for traditional litigation. It is advisable to consult with legal professionals to determine the most appropriate dispute resolution method for specific cases.

For further reading on the rise of expedited arbitration, you may find this article informative. It delves deeper into the benefits and considerations of this alternative to traditional litigation.

In conclusion, expedited arbitration is gaining popularity as a faster and more efficient alternative to traditional litigation. Its time efficiency, cost savings, flexibility, and specialized expertise make it an attractive option for parties seeking a prompt and satisfactory resolution to their disputes. By understanding the rise of expedited arbitration and its advantages, individuals and businesses can make informed decisions regarding their preferred method of dispute resolution.


Exploring the Benefits and Drawbacks of Binding Arbitration

Exploring the Benefits and Drawbacks of Binding Arbitration

In today’s complex legal landscape, binding arbitration has become an increasingly popular alternative to traditional litigation. This article aims to delve into the benefits and drawbacks of binding arbitration, shedding light on its advantages and limitations.

Benefits of Binding Arbitration

1. Efficient Resolution: Binding arbitration offers a streamlined and faster process compared to litigation. The parties involved can avoid lengthy court proceedings and benefit from a more efficient resolution to their dispute.

2. Cost-Effectiveness: Arbitration can be a cost-effective option as it eliminates the need for extensive court fees and reduces legal expenses. The parties can save both time and money by opting for binding arbitration.

3. Flexibility in Choosing the Arbitrator: In binding arbitration, the parties have the flexibility to choose a neutral and knowledgeable arbitrator who specializes in the subject matter of their dispute. This allows for a more tailored and informed decision-making process.

4. Confidentiality: Unlike traditional litigation, binding arbitration proceedings are typically confidential. This means that the details of the dispute, evidence presented, and the final decision are not made public. Confidentiality can be particularly beneficial for parties seeking to protect their reputation or sensitive information.

5. Final and Binding Decision: One of the key advantages of binding arbitration is that the decision reached by the arbitrator(s) is final and binding. This provides certainty to the parties involved, as the decision cannot be appealed in most cases.

Drawbacks of Binding Arbitration

1. Limited Appellate Rights: While finality is a benefit, it can also be a drawback for some parties. Binding arbitration generally limits the right to appeal the decision, which means that if one party disagrees with the outcome, it may be challenging to challenge or overturn the arbitrator’s decision.

2. Lack of Formal Discovery: Unlike litigation, binding arbitration often lacks extensive formal discovery processes. This can limit the ability of parties to gather evidence to support their claims fully. However, some arbitration rules do allow for limited discovery.

3. Difficulty in Obtaining Interim Relief: In certain cases, seeking interim relief—such as injunctions or restraining orders—can be more challenging in binding arbitration compared to litigation. The process for obtaining immediate relief can be more cumbersome and less readily available.

4. Potential for Limited Precedential Value: Binding arbitration decisions generally have limited precedential value. This means that the decision reached in one arbitration case may not be relied upon as legal precedent in future cases. This lack of precedential value can limit the ability to establish clear legal principles.

5. Limited Control over the Process: While arbitration offers flexibility, parties have limited control over the process. The rules and procedures are typically determined by the chosen arbitration institution or the arbitrator, which may restrict the ability to present evidence or make legal arguments in the desired manner.

Frequently Asked Questions (FAQs)

  • Q: Is binding arbitration legally enforceable?
  • A: Yes, binding arbitration is legally enforceable, and the decision reached by the arbitrator(s) is generally binding on the parties involved.
  • Q: Can binding arbitration be appealed?
  • A: In most cases, the decision reached in binding arbitration cannot be appealed. However, there may be limited grounds for challenging the decision, such as fraud or misconduct by the arbitrator.
  • Q: How long does binding arbitration typically take?
  • A: The duration of binding arbitration can vary depending on the complexity of the dispute and the availability of the parties and the arbitrator(s). However, it is generally a quicker process compared to litigation.
  • Q: Can I choose my arbitrator in binding arbitration?
  • A: Yes, one of the advantages of binding arbitration is the flexibility to choose a neutral and knowledgeable arbitrator who specializes in the subject matter of the dispute.

Binding arbitration is a powerful alternative dispute resolution mechanism that offers both benefits and drawbacks. While it provides an efficient, cost-effective, and confidential resolution, it also presents limitations such as limited appellate rights and potential lack of formal discovery. Understanding these aspects is crucial for parties considering binding arbitration as a means to resolve their disputes.

For further information on binding arbitration, refer to the following resources:

Linkhouse

Inside the World of Arbitral Tribunals: A Closer Look at International Dispute Resolution


Inside the World of Arbitral Tribunals: A Closer Look at International Dispute Resolution

Introduction:

Arbitration has emerged as a popular alternative to traditional litigation for resolving international disputes. In this blog article, we will delve into the intricate world of arbitral tribunals and explore the fascinating realm of international dispute resolution. From understanding the role of arbitral tribunals to examining the advantages and challenges associated with this method, we aim to provide you with a comprehensive overview. So, let’s embark on this journey and unravel the mysteries of the arbitral tribunal’s universe.

Understanding Arbitral Tribunals:

Arbitral tribunals serve as the cornerstone of the arbitration process, ensuring a fair and impartial resolution to international disputes. These tribunals consist of a panel of arbitrators who possess expertise in various legal and commercial domains. The arbitrators are chosen by the disputing parties or appointed by an arbitral institution.

Unlike traditional litigation, where disputes are resolved in national courts, arbitral tribunals operate outside the traditional legal framework. Their decisions, known as arbitral awards, are binding and enforceable in multiple jurisdictions through international conventions such as the New York Convention. This flexibility and enforceability make arbitration an attractive choice for parties involved in cross-border disputes.

The Role of Arbitral Tribunals:

Arbitral tribunals play a pivotal role in international dispute resolution. Their primary function is to hear the arguments presented by both parties and render a decision based on the applicable laws, contracts, and evidence. The arbitrators act as neutral third parties, ensuring a fair and impartial process.

The tribunal’s jurisdiction is determined by the agreement of the parties involved. This agreement is usually established through a carefully drafted arbitration clause in contracts or a separate arbitration agreement. The parties choose arbitration as a means to resolve their disputes due to its confidentiality, expertise, and expedited nature compared to traditional litigation.

Advantages of Arbitral Tribunals:

1. Expertise and Specialization: One of the key advantages of arbitral tribunals is the ability to select arbitrators with expertise in the specific subject matter of the dispute. This ensures that the decision-making process is based on a deep understanding of the industry or legal nuances involved, leading to more informed and specialized decisions.

2. Confidentiality: Arbitration offers a higher level of confidentiality compared to court proceedings. Parties can protect sensitive information and trade secrets, maintaining their competitive advantage in the market. This confidentiality also promotes a more open and honest exchange of information during the dispute resolution process.

3. Flexibility and Efficiency: Arbitration provides parties with the flexibility to tailor the proceedings according to their specific needs. It allows them to choose the governing law, the language of the proceedings, and even the number of arbitrators. This flexibility, coupled with the streamlined nature of arbitration, ensures a more efficient and time-effective resolution process.

4. Enforceability: As mentioned earlier, arbitral awards are enforceable in multiple jurisdictions through international conventions. This global enforceability adds credibility to the arbitration process, assuring parties that their rights will be protected and the award will be recognized worldwide.

Challenges and Considerations:

While arbitral tribunals offer several advantages, it is important to acknowledge the challenges and considerations associated with this method of dispute resolution.

1. Cost: Arbitration can be more expensive than traditional litigation, primarily due to the fees of arbitrators and administrative costs. Parties must carefully consider the potential costs involved and evaluate the benefits against their specific circumstances.

2. Limited Appeal: Unlike court judgments, arbitral awards have limited grounds for appeal. The finality of these awards may be seen as an advantage, ensuring swift resolution, but it also means that parties have limited options for challenging unfavorable decisions.

3. Choice of Arbitrators: Selecting the right arbitrators is crucial for a successful arbitration process. Parties should consider the arbitrators’ expertise, reputation, and neutrality. However, the availability of highly qualified arbitrators and the potential for conflicts of interest can pose challenges in the selection process.

4. Lack of Precedent: Unlike court judgments, arbitral awards do not create binding precedents. This lack of precedent can make it challenging to predict the outcome of future disputes and may result in inconsistent decisions.

FAQs:

Q: Can parties choose the language of arbitration proceedings?

A: Yes, parties can select the language in which the proceedings will be conducted. This ensures that both parties can effectively present their arguments and understand the process.

Q: Are arbitral awards binding and enforceable?

A: Yes, arbitral awards are binding and enforceable in multiple jurisdictions through international conventions such as the New York Convention. This ensures that parties can rely on the award and seek enforcement globally.

Q: Is arbitration confidential?

A: Yes, arbitration offers a higher level of confidentiality compared to court proceedings. Parties can protect sensitive information and trade secrets, maintaining their competitive advantage.

Q: How long does an arbitration process typically take?

A: The duration of arbitration depends on various factors such as the complexity of the dispute, the number of arbitrators, and the parties’ cooperation. While arbitration is generally faster than litigation, it can still take several months to reach a final decision.

Conclusion:

Arbitral tribunals serve as the backbone of international dispute resolution, offering parties a fair, efficient, and specialized process. With their expertise, neutrality, and enforceability, arbitral tribunals provide a reliable mechanism for resolving cross-border disputes. However, it is essential for parties to weigh the advantages against the associated challenges and consider their specific needs before opting for arbitration. By delving into the world of arbitral tribunals, we have gained a closer look at the fascinating realm of international dispute resolution.

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