ACICA
Australian Centre for International Commercial Arbitration
About ACICA
The Australian Centre for International Commercial Arbitration ('ACICA') is a not-for-profit public company which was established in 1985. The objects of ACICA are to support and facilitate international arbitration and to promote Sydney and Australia as a venue for international commercial arbitrations.
ACICA maintains a panel of international arbitrators and a list of experienced arbitration practitioners. It provides information on international arbitration and is involved in education through the provision of seminars.
What is international arbitration?
Arbitration involves dispute resolution by a third party, the arbitrator. The arbitrator's determination is called an award. The difference between court proceedings and arbitration rests on the flexibility of arbitral procedure and, more importantly, the fact the arbitrator derives authority from the agreement of the parties. Leaving aside the special case of arbitrations mandated by statute, an arbitration will only be possible if the parties in dispute have agreed to refer that dispute to an arbitrator for decision. Generally this authority is found as a clause in a commercial contract between the parties.
By agreeing to arbitration the parties can select a decision maker of their choice. They can also agree on an appropriate procedure and may decide, for example, to impose strict time limits, to limit pleadings or even to dispense with a hearing and have a decision on documents alone.
For international disputes arbitration has considerable advantages. Most importantly arbitration agreements and arbitral awards are enforceable worldwide under an international law known as the New York Convention. By agreeing to arbitration parties can keep their disputes out of foreign courts and achieve international recognition of the arbitral award.
Arbitration also differs from mediation. There is some similarity in that an arbitrator and mediator can generally only be appointed with the agreement of both parties. But while an arbitrator has authority to resolve a dispute by issuing a binding determination, the role of the mediator is quite different. A mediator cannot determine a dispute by issuing an award and is only empowered to assist the parties to agree on a settlement of their dispute.
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.