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Getting to know “Permanent Court of Arbitration”, a peaceful resolution of international disputes
Many may have heard about “Permanent Court of Arbitration or PCA” over the news. This article will introduce the readers to the Permanent Court of Arbitration, its origin, jurisdiction, and duties of the Permanent Court of Arbitration, also the differences between the Permanent Court of Arbitration and the International Court of Justice, along with the cases decided by the PCA.
The origins of the Permanent Court of Arbitration
The Permanent Court of Arbitration originates from the evolution of international arbitration systems such as the Jay Treaty of Arbitration in 1794, a ceasefire and trade agreement between the United States and Great Britain. (Read more here). The 1974 Alabama Claims Arbitration took place in the post-American Civil War that called for England to indemnify the breach of international neutrality through international arbitration. The arbitral award has ordered England to pay compensation for breach of the agreement. The results of the award and its enforcement have established the acknowledgment of the international arbitration dispute resolution process and later helped establish the arbitration court. In 1899 the Convention for the Pacific Settlement of International Disputes in The Hague, the Netherlands had established the Permanent Court of Arbitration to promote the resolution in disputes that involving states and international governments through arbitration and other means such as mediation and fact-finding as to prevent the war between countries or states. The PCA is recognized as an international organization that provides services to its member states and the international private business sector.
Jurisdiction of the Permanent Court of Arbitration
The Permanent Court of Arbitration is an intergovernmental organization as an alternative dispute resolution process agreed upon between the parties. A competent ad hoc arbitral tribunal will be appointed to consider the dispute, and the award will have a legally binding effect. The parties must comply with an award from the PCA.
This alternative dispute resolution method is highly popular both from the public and private sectors. This is because the process is more flexible than the judicial court, and there is no need to disclose information to the public. It has also been recognized and trusted by many countries as the parties may concerned that using a particular country court to settle international disputes will cause injustice due to differences in law, language, culture, beliefs, and religion.
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Difference Between Court of Arbitration and International Court of Justice
Many people are misunderstood and confused between the Permanent Court of Arbitration and the International Court of Justice because they are both located at the Peace Palace in the Hague, the Netherlands. However, the International Court of Justice was established after the First World War. The difference between the two courts is that the Permanent Court of Arbitration will appoint an ad hoc tribunal from the agreement of the disputed countries, while the International Court of Justice already has a panel of judges. Regarding the proceedings of the Court of Justice, it will be conducted in accordance with the Statute of the Court in which all proceedings have been established and using English and the French language in all proceedings. On the other hand, the Permanent Court of Arbitration is more flexible as it can be determined on procedures and methods for consideration and can choose other languages for the proceeding. In addition, the Court of Justice is the judicial organ of the United Nations (UN). The proceedings’ costs in any international conflict will be responsible by the United Nations, while the disputing parties are responsible for all expenses in the Permanent Court of Arbitration.
The Ruling of the dispute in the South China Sea
One of the notorious rulings is regarding the South China Sea dispute. China has created a ‘nine-dash map’ to claim ownership over most of the South China Sea waters and prepare to occupy the Philippines’ marine territories in 2012 illegally. The action was also against the 1982 United Nations Convention on the Law of the Sea (UNCLOS) that was ratified by both two countries. It resulted in a petition by Philippines in 2013 to the Permanent Court of Arbitration against the Chinese claim. It was later ruled in 2016 that China’s claims over the South China Sea had no legal basis. However, China has not yet accepted this ruling. (Read more here)
About Us
Thailand Arbitration Center or THAC is a center that provides services in arbitration and mediation with an international standard. It has been in operation since 2015 to support and promote international arbitration and provide arbitration services that are independently operated with international standards. With experience and professional expertise, thus, ensuring that users will receive accurate and fast services. Also, THAC is located in the central business district, which makes it easy to travel. It also offers services at a lower rate which helps you to save both time and money.
References:
- Permanent Court of Arbitration
- International Court of Justice: ICJ
- Guidelines for Optimizing the Efficiency of International Arbitration in Thailand: Case Study for Thailand Arbitration Center
- Getting to Know Jay Treaty of Arbitration
- Timeline of the South China Sea Dispute and Arbitration
