More than half of 2020 has gone. Besides the changes happening globally, there is plenty happening in the arbitration front. So what should businesses and practitioners expect from the remaining part of the year? Let us look at the current arbitration trends that are impacting the businesses in more ways than one. In this article we also try to delve deep and understand how the scenario is going to change in the future.
The ongoing pandemic has made us all reach for our panic button. The influence on international arbitration is there for everyone to see. And you get to feel the palpable change with hearings and procedural time tables as there is a great reduction for a person to person contact. The arbitrators are rallying around and adapting with flexible systems and technologies.
Trading dynamics the world over
World trading dynamics are presenting specific challenges for investor clients. Instability in the geopolitical landscape, changing regulatory regulations, and States’ measures for money and other major measures can help squeeze investors and that’s going to be the scene in 2020 too. Investors have to take proper steps to survive in the volatile climate.
ISDS reform efforts
The state-investor arbitration is undergoing several changes as ISDS reform efforts continue. Evaluating the current state of affairs in the reforms sector across the globe provides an understanding of what it entails for the investment arbitration future.
Brexit related uncertainties
Brexit will not impact the London-based arbitrations. There will be continuous enforcement of arbitral awards that will be under the radar of the New York Convention. In the case of UK investors, Brexit-linked turmoil in the UK’s trading arrangements for the future will continue in 2020 as there will be an EU deadline. And place of trading arrangements with third countries will extend until the last day of 2020.
Data protection and cybersecurity
Cybersecurity and data protection are gaining more importance in international arbitration. And the trend is likely to move ahead in 2020. It is because the threat of generous fines is looming large. We are likely to see people becoming more aware of cybersecurity. And there will be an increase in the awareness on personal data problems. Thus ensuring there is more effort to ensure compliance.
The significance of the court
In the final months of 2019, we saw courts in the crux of two key jurisdictions – China and the USA and a willingness to invest in international arbitration. Most developments have been completely tried and tested and they create varied opportunities going forward for arbitrations that involve parties coming from the two important economies of the world.
Global projects are likely to give an impetus to numerous complex disputes. While they cater to, and international arbitration, the world is likely to witness a larger interest in the efficiency and ADR use along with mediation. This is because arbitrators find out more about recommendations of two current types of research putting the spotlight on the construction industry arbitration.
The need of the hour is speed – post-M&A disputes
For speed, there are new and evolving tools useful in resolving post-M&A disputes at an efficient pace. This includes summary dismissal, expedited procedures, and emergency procedures. They might give rise to the proportion of important cross border deals, including arbitration clauses, and other disputes such as post-M&A and shareholder disputes referred to arbitration.
The need for more diverse international arbitration is increasing. There is also an increase in improving gender diversity. This efforts will result in an increase in the appointment of female arbitrators. The need of the hour is to focus on green arbitrations that took an important step towards 2019 and the trend is likely to grow in 2020. It will ensure global speed and boost awareness on issues concerning climate change.
These are just the top eight arbitration trends that the world is likely to witness in this year and beyond. Besides these, there are many more changes taking place globally in arbitration. There is a flip in the claims in international arbitration stemming from the global economic crisis. However, this could be because of a longer-term underlying driving point of dispute activity which depends on cross-border investment flows.
However, going by the uncertainity the world has witnessed over the past few months, there might be more surprises and newer trends in the years ahead. The only thing we could do at this point, it to wait and watch!