Limits on Arbitration Outside Croatia: According to the Croatian Arbitration Act

Abstract

Pursuant to Art. 3, paragraph 2 of the Croatian Arbitration Act, in disputes between parties who have their domicile or habitual residence in Croatia or are established under Croatian law and in disputes subject to the exclusive jurisdiction of Croatian courts of law, parties may agree on arbitration but the place of arbitration must be in Croatia. This provision restricts market access to foreign arbitrators, arbitration institutions and other service providers in arbitration. As such it is incompatible with the provisions of the EC Treaty on the freedom to provide services. Preparing for the accession to the EU, Croatia should abolish this restriction and provide for equal delimitation of the domain of domestic and foreign arbitration. The abolishment of this restriction is also mandated by the provisions of the Stabilization and Association Agreement between Croatia and EC and its Member States of 2001 which lays down a legal framework for the removal of obstacles to cross-border provision of services.