Introduction
The increase in international commercial activity has generated the need for effective risk control tools associated with cross-border commercial disputes. Alternatives are required to reduce the inconveniences and possible uncertainties caused by litigating in a foreign country, under foreign legislation or in a foreign language; alternatives which, moreover, guarantee the enforcement of the adopted resolution.
“In a recent study, 73% of companies expressed a preference for the arbitration process.”
This need, together with the legislative developments of recent years, have made arbitration one of the most implemented tools by companies. In a recent study on arbitration*, 73% of companies expressed a preference for the arbitration process, either independently or coupled with other alternatives, for the resolution of international commercial disputes.
In the study, the majority of companies (78%) also expressed their support for institutional arbitration as well as the establishment of new arbitration seats. An ideal seat for International Commercial Arbitration is one which encompasses at least the following essential requisites:
- A suitable legal framework.
- A pro-arbitration culture.
- The necessary professional services and infrastructures.
Aware of all of the above, the Second Vice-Presidency and Regional Ministry of Justice and Public Administrations; PromoMadrid, the region’s international economic development agency; together with the main private operators in the Madrid legal and business sector, have united their efforts through a strategy and action plan to promote Madrid as a Seat for International Commercial Arbitration.
*Source: PriceWaterhouseCoopers. “International Arbitration. Corporate attitudes and practices 2006”.