Economy

‘Own arbitration tool must for BRICS’

Some centres have monopolised a bulk of international arbitrations, Jaitley said. —FILE PHOTO: REUTERS

Some centres have monopolised a bulk of international arbitrations, Jaitley said. —FILE PHOTO: REUTERS  

It is extremely important that the BRICS nations develop an arbitration mechanism among themselves at a time when certain centres in the world have monopolised the bulk of the cases, Union Finance Minister Arun Jaitley said.“It is extremely important that we develop a (dispute resolution) mechanism as far as the BRICS nations are concerned,” Mr. Jaitley said at a conference on international arbitration in BRICS, on Saturday. “In order to develop this mechanism, it is necessary that we have arbitrators of the required capability and lawyers with a great international ability.

Domestic jurisdiction

“We also need to have a lot of restraint as far as domestic jurisdictions of courts to interfere in those arbitrations. The arbitration centres must be detached from local commitments,” he said.The experience over the years was that some centres monopolised a bulk of the international arbitrations and many countries fear — and have periodically voiced concerns about — the fact that many awards emerging from these arbitration centres were loaded against the emerging economies, he said.

Taskforce needed

“The need today is that over the next few months we (the BRICS nations) have to interact more frequently,” Mr. Jaitley said.

“I would even suggest that we have a taskforce which can discuss this issue at length and then set up an appropriate mechanism where we can have arbitration centres as far as the BRICS countries are concerned,” the minister said.

Speaking about the role of BRICS in the world, Mr. Jaitley highlighted how, in a troubled global economy, the five BRICS nations had shouldered the global burden of growth.

“Ever since the 2008 economic crisis, except for a brief period, the global economy itself has been challenging,” Mr. Jaitley said.

“It was the emerging economies, predominantly the BRICS nations, which had shouldered a large part of global growth.”

In the last few years, however, the challenges had changed, he said. The drop in commodity and mineral prices had affected Russia, South Africa, and Brazil.

“These economic challenges are almost running parallel to the political challenges,” Mr. Jaitley said. “Among these are security threats created with the ISIS phenomenon, and you have a new wave of protectionism in the developed economies.

“The Brexit was born out of that. And of FTAs (Free Trade Agreements) in the developed world, there is a very strong comment in the run up to the U.S. Presidential elections.”

Developing nations

Speaking at the event, Economic Affairs Secretary Shaktikanta Das listed the issues that currently plague the international arbitration system.

Among these, Mr. Das, pointed towards the lack of adequate representation of the developing nations in the arbitration process, the need to quickly dispose off frivolous cases and the need to take into account the exigencies of populous nations.

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Sep 28, 2020 3:06:03 PM | https://www.thehindu.com/business/Economy/%E2%80%98Own-arbitration-tool-must-for-BRICS%E2%80%99/article14593297.ece

Next Story