Why may companies from different countries prefer international arbitration to a national court?

Companies from different countries often prefer international arbitration over national courts for several key reasons:

• Impartiality: An international panel of arbitrators can provide a greater guarantee of neutrality than a national court, which might be perceived as favoring its own country's interests.1
• Expertise: Arbitrators are frequently chosen by trade associations or business groups specifically for their expert understanding of the technical or industry-specific issues involved in the dispute.1
• Efficiency: The process is generally simpler, more expeditious, and potentially less expensive than traditional litigation.1
• Confidentiality: Proceedings are private, which is highly advantageous when the dispute involves sensitive trade or business secrets.1
• Flexibility: Parties can often authorize arbitrators to base decisions on equitable considerations that might be excluded under strict national laws. Additionally, parties can agree to bypass the requirement to exhaust local administrative or judicial remedies, which are often mandatory in national court proceedings.12

While national courts may face challenges regarding the enforcement of foreign judgments, international agreements have been developed to facilitate the recognition and enforcement of arbitral awards across borders.3