Jacobson · Markham L.L.P.

DEFINITIONS OF INTERNATIONAL ARBITRATION IN GLOBAL CONSTRUCTION PROJECTS

When a global construction project involves a contract that provides for arbitration in the event of a dispute, the arbitration may be considered to be an international arbitration. An arbitration is considered to be an international arbitration if the underlying construction project is an international project, that is, a construction project that involves different countries. An arbitration is also considered to be an international arbitration if the underlying dispute has an international character, that is, if the parties that are involved in the project are from different countries.

Some international treaties, model laws, and foreign laws define international arbitration. Such treaties, model laws, and foreign laws include the United Nations Commission on International Trade Law Model Arbitration Law (UNCITRAL Model Arbitration Law) and Model Law on International Commercial Conciliation (UNCITRAL Model Conciliation Law) and the laws of France, Italy, and Switzerland.

The UNCITRAL Model Arbitration Law has been adopted by over 35 countries and by several states in the United States. The UNCITRAL Model Arbitration Law defines an arbitration as an international arbitration if the parties are from different countries or if most of the parties' obligations are to be performed outside the countries in which the parties are located. The UNICTRAL Model Arbitration Law also defines an arbitration as an international arbitration if the parties have agreed that the subject matter of their arbitration agreement involves more than one country.

The UNCITRAL Model Conciliation Law defines an arbitration as an international arbitration if the place of conciliation or arbitration is in another country, even if the parties and the elements of a dispute are located in the same country.

French law defines an arbitration as an international arbitration if the arbitration involves international commercial interests. The definition under French law depends upon the nature of the commercial relationship. Italian law provides that if at least one of the parties is domiciled or has its principal place of business in another country or if a dispute refers to obligations that are to be performed in another country, the arbitration is an international arbitration. Swiss law provides that if at least one of the parties to a dispute is not a resident or a domiciliary of Switzerland, the arbitration is an international arbitration.

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