A proposed legislation to establish rules and procedures for facilitation of an alternative way for resolving international business disputes was submitted to OEK by President Remengesau this week.
International Commercial Arbitration provides international businesses doing business in Palau another way to resolve disputes beside going to courts.
One of the benefits of such law is said to make Palau more foreign investment friendly. It would give companies in Palau option not to go overseas to resolve commercial disputes but to do so in Palau.
Palau ratified Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) through House Joint Resolution 10-55-13, HD2 and the proposed bill expands on this resolution, assuring foreign investors that Palau will enforce the arbitral awards abroad.
According to the transmittal letter from President Remengesau Jr. accompanying the bill, the benefits of such bill “increases foreign direct investment in developing countries.”
He added that in the midst of global pandemic, Palau has to prepare for strong recovery and implementing the international arbitration law will do just that.
The bill was submitted to both houses yesterday for action.
Arbitration bill submitted to OEK
