Importance of the Seat of Arbitration in International Arbitration: Delocalization and Denationalization of Arbitration as an Outdated Myth

Abstract

The seat of arbitration seems to be one of the most important issues to be agreed within an arbitration agreement. It directly influences a number of issues: arbitrability, determination of the governing law, whether substantive or procedural, and determination of the place for the proceedings on annulment of the arbitral award (and for the exercise of the juge d´appui and supervisory functions of courts with respect to arbitration). The examples of many countries clearly illustrate that the ideas of the denationalization of arbitration are somewhat chimerical, especially because the states desire to preserve a certain degree of control over arbitration; it also demonstrates the fact that the denationalization of arbitration generally does not even correspond to the actual interest of the parties. The reason often inheres in the greater security guaranteed in localized proceedings. Consequently, the denationalization of arbitration has never been fully implemented, and it appears that it has become a very marginal issue.