international arbitration

International arbitration is a legal technique used to resolve disputes outside of traditional court systems by referring them to a neutral third party, known as an arbitrator, who makes a binding decision. This method is distinct from mediation and conciliation, which offer recommendations rather than binding rulings.1

While commonly used for commercial disputes, international arbitration faces challenges, particularly when governments are involved. States may require that all local legal remedies be exhausted before agreeing to arbitration. The process typically involves a written agreement, often called a compromis, which outlines the specifics of the arbitration, such as the procedure, applicable law, and the arbitrators' roles. Awards rendered by arbitral tribunals are generally respected and complied with by states, though persuading them to submit disputes to arbitration can be difficult. The International Court of Justice, while a principal judicial organ of the UN, also arbitrates international disputes, though states must consent to its jurisdiction.12