Arbitration has quickly become the technique of choice in Bangladesh for resolving disputes arising out of international and commercial trade transactions. Bangladesh’s engagement in international commerce has greatly risen in recent years as a result of the country’s rising importance in the global economy.
Because of this, the risk of economic disagreements has increased, making it more important than ever before to implement effective processes for dispute settlement.
Arbitration, because to its adaptability, timeliness, and capacity to be enforced, has emerged as the preferred dispute resolution method for a significant number of firms and people in Bangladesh that are engaged in international and commercial commerce.
The Importance of Foreign Investment and Commercial Trade to the Country of Bangladesh
Commerce on a global scale and commercial exchange are two essential pillars that support Bangladesh’s economy. Due to the country’s large population (over 160 million people) and limited natural resources, the nation places a significant amount of emphasis on its participation in international commerce in order to foster economic expansion and development. The following are some of the most important characteristics that demonstrate the significance of international and commercial trade in Bangladesh:
Economic development: International commerce makes a substantial contribution to the overall GDP of the country, which in turn fuels economic development and the creation of new jobs.
profits in Foreign currency Exports are a significant source of foreign currency profits, which are necessary for the importation of products, services, and technology.
Investment from outside: A healthy International and Commercial Trade environment is more likely to attract investment from outside, which in turn increases the economic potential of the country.
Diversification of Markets: Bangladeshi goods benefit from the increased market diversity brought about by increased international commerce. This helps reduce the country’s reliance on a single market and mitigate risk.
In light of the increasing significance of international and commercial trade in Bangladesh, the effective settlement of International and Commercial Trade disputes is of the utmost importance to the maintenance of economic development and the preservation of confidence among trading partners.
Arbitration is the Option of Preference for Resolving Disputes in International and Commercial Trade
In recent years, Bangladesh has seen a rise in the use of arbitration as a favored way for settling disputes involving international and commercial commerce. This predilection may be attributed to a number of variables, including the following:
Arbitration provides freedom in both the manner in which it is conducted and the individuals who are chosen to serve as arbitrators. Because of its adaptability, the procedure may be tailored to the individual requirements and preferences of the parties involved, making it especially ideal for the resolution of complicated international and commercial conflicts.
Arbitration, as opposed to litigation in national courts, often takes less time to complete. Having the option to choose arbitrators who bring subject-matter knowledge to the table is one factor that may contribute to a quicker settlement of conflicts.
The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards makes it possible for arbitration awards to be legally recognized and carried out in Bangladesh as well as in other nations across the world. Having their agreements recognized and able to be enforced on a global scale is a significant competitive advantage for businesses that participate in international commerce.
The selection of arbitrators in Bangladesh often takes place on the basis of the candidates’ levels of experience in the many subjects that are at issue. This makes it possible for specialized judgments to be made, which may successfully solve complicated International and Commercial Trade concerns.
Even while it is possible for there to be charges associated with arbitration, it is often more cost-effective than litigation in national courts, particularly when one takes into account the amount of time that is saved and the possibility of maintaining commercial connections.
The Dispute Resolution Process That Is Being Used in Bangladesh
The Arbitration Act of 2001, which was passed in Bangladesh in 2001 and provides a complete legal framework for the conduct of arbitrations, is the primary piece of legislation that governs arbitration in the country. These are the usual stages that are included in the arbitration procedure in Bangladesh:
Arbitration Agreement of International and Commercial Trade: In the event that a dispute arises between two or more parties, the parties concerned are required to have an arbitration agreement in place. This agreement may be made as part of a larger contract, or it may be made alone.
Arbitrator(s) Selected: An arbitrator or a panel of arbitrators is chosen by the parties involved in the dispute. The process of selecting an arbitrator is very important since the skill and impartiality of the arbitrator are essential for achieving a just result.
Arbitration processes of International and Commercial Trade: The arbitration processes are carried out in accordance with the norms and procedures that were previously agreed upon. The arbitrator (or arbitrators) will evaluate the evidence, listen to both sides’ arguments, and then come to a conclusion that is final and legally binding.
Award in Arbitration The arbitrator (or arbitrators) will then issue an award in arbitration. This award is a written document that describes their conclusion about the dispute. This judgment may be enforced in accordance with the law.
In the event that one of the parties to the arbitration fails to comply with the judgment, the award may be enforced via the judicial system in Bangladesh and in any other countries that are signatories to the New York Convention.
What are the Pros and Cons of Going Through with Arbitration in Bangladesh?
Arbitration in Bangladesh provides several benefits for the resolution of international and commercial trade disputes, including the following:
Gains to Obtain of International and Commercial Trade:
Arbitration is a practical solution for companies since the processes are often quicker and more simplified compared to litigation in national courts. This makes it an efficient option.
experience: The parties to the disagreement have the ability to pick arbitrators who have experience in the subject area at hand. This ensures that the issue is addressed by persons who have information that is pertinent to the situation.
Arbitration verdicts are globally enforceable, which serves as a powerful incentive for the parties involved to comply with the conclusions reached by the arbitrator.
Confidentiality: The proceedings of an arbitration case are often kept secret, which helps to preserve sensitive information.
Even while it is possible for there to be fees associated with arbitration, it is often more cost-effective than drawn-out legal battles.
Taking into account:
Costs: Although arbitration is often more cost-effective than going to court, it is still possible for there to be large costs involved, especially in more complicated situations.
Arbitration rulings have limited possibilities for appeal, which may be a disadvantage for parties that are unhappy with the conclusion and want to challenge the decision.
Finality: Once they have been issued, arbitration rulings are often regarded as final, despite the fact that it may be difficult to dispute them in court.
Arbitrators Must Be Chosen Careful attention must be paid to the selection of arbitrators since it is ultimately up to them to make the final judgment. The parties have an obligation to make certain that the arbitrators appointed are competent, unbiased, and able to handle the conflict in an efficient manner.
The final word International and Commercial Trade
Arbitration has emerged as the technique of choice in Bangladesh for the settlement of international and commercial trade disputes. In light of the fact that the country is playing an increasingly important role in international commerce, the efficacy and the capacity of arbitration rulings to be enforced are of the utmost significance in order to preserve confidence and stability in business partnerships.
Arbitration is a realistic solution for organizations and people in Bangladesh who are engaged in International and Commercial Trade as a result of its adaptability, experience, and cost-effectiveness. Arbitration is set to play an ever more prominent role in changing the landscape of dispute resolution in the country as a result of the continued growth of international commerce.
0 Comments