SMU SIDRA Survey Report 2020

Section 6 International Commercial Arbitration • International commercial arbitration remains the most- used mechanism for international dispute resolution, and was used by 74% of respondents between 2016 and 2018. • More than 75% of respondents indicated that enforceability, impartiality/neutrality and finality were absolutely crucial or important factors in their choice of arbitration as a dispute resolution mechanism. • Arbitration remained the dispute resolution mechanism of choice even as users expressed lowered satisfaction with the speed and costs of arbitration. The chart refers to the respondents who indicated the considerations for selection were “Absolutely Crucial” and “Important” in their choice of Arbitration as a Dispute Resolution Mechanism. All Users Enforceability Impartiality/Neutrality Confidentiality Finality Flexibility in choice of seat/ institutions/venues/arbitrators Flexibility of process Cost 87% 85% 80% 73% 72% 69% 67% 62% Exhibit 6.1.1 Factors Influencing Choice of Arbitration 6.1 Choice of Arbitration and Respondent User Satisfaction Speed 6.1.1 In selecting arbitration, users indicated enforceability (87%), impartiality/neutrality (85%), and finality (80%), as ‘absolutely crucial’ or ‘important’ factors influencing their choice. The robust and nearly universal framework for enforcement of arbitral awards afforded by the New York Convention has likely played an important role in the popularity of arbitration as a dispute resolution mechanism among users. At a Glance: SIDRA INTERNATIONAL DISPUTE RESOLUTION SURVEY 27