1958 Convention: Reservations

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1958 Convention: Reservations

 

In principle, the Convention applies to all foreign or international arbitration agreements and to all foreign or non-domestic awards. However, Contracting States can make two reservations to the application of the Convention.

 

Reciprocity (Article I(3) First Sentence)

Contracting States may declare that they will apply the Convention only to the recognition and enforcement of awards made in the territory of another Contracting State. Approximately two-thirds of the Contracting States have made this reservation. A court in a State which has made the reservation of reciprocity will apply the Convention only if the award has been made in the territory of another Contracting State, or if the award is non-domestic and shows links to another Contracting State.

 

Commercial nature (Article I(3) Second Sentence)

Contracting States may also declare that they will apply the Convention only to differences arising out of legal relationships, whether contractual or not, which are deemed commercial under the national law of the State making such declaration. Approximately one-third of the Contracting States have made this reservation.

Although the language of the Convention refers to the national law of the forum State (as an exception to the principle of autonomous interpretation), in practice courts also give consideration to the special circumstances of the case and to international practice. In any event, considering the purpose of the Convention, courts should interpret the notion of commerciality broadly.

Even though the Convention speaks of reservations only in the context of recognition and enforcement of awards, it is generally understood that the reservations also apply to the recognition of arbitration agreements.

 

Source: ICCA’S Guide to the interpretation of the 1958 New York convention. Not changes allowed.

Conclusion

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References and Further Reading

About the Author/s and Reviewer/s

Author: international

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