2016 – A Year of Massive Political Change:
On the 23rd June 2016, Britain chose to leave the EU. This decision came with huge ramifications, not just for the country but for the rest of the EU too. The outcome of the referendum set the UK on a new path legally, politically and economically. Legal practitioners and businesses that are caught up in disputes will have to take into account how International Arbitration and Brexit are interlinked.
Is International Arbitration safe?
One area that is safe from the impact of Brexit is International Arbitration.
International arbitration involves disputes between companies or individuals in different countries who want to avoid litigation. Brexit will have very little impact upon international arbitration due to England’s 1996 Arbitration Act, which does not incorporate EU law. Furthermore, the Brussels Regulation of Jurisdiction (1968) has not included arbitration within its range of implementation.
An aspect of the British legal system that will definitely be affected by Brexit is the means by which UK court judgements are applied in EU countries, and the means by which EU court judgements are administered in the UK.
The UK holds the most important arbitral seat
Moreover, London is a main international dispute centre and is one of the most reputable centres for domestic and international arbitration in the world.
The UK holding the most important arbitral seat across the globe gives it distinct advantages with arbitration funding and with the arbitral procedure. Its reputation has never depended upon its membership within the EU and this is due to the UK possessing high quality judiciary with legislation that is current, clear and succinct.
As domestic and international arbitration has never been controlled at an EU level the English arbitration market will remain the same. And so NO, Brexit will not affect International Arbitration.
What are your thoughts about international arbitration and Brexit? Tell us in the comments of this post.