FAQs International trade disputes

What types of international trade disputes arise?

All of the types of disputes that can arise between businesses within the UK can also arise on an international level. However the disputes become much more complicated when they are cross-border disputes. Common issues concern:

Contract disputes
Non-payment of outstanding accounts
Intellectual property disputes
International transport of goods
E-commerce
Customs issues

What laws apply to international trade disputes?

There are a large number of international agreements that apply to international trade. However, many of these, such as World Trade Organisation agreements, apply to countries rather than individual companies. UNIDROIT (an acronym for the International Institute for the Unification of Private Law) provides international documents which set out internationally accepted rules for the resolution of disputes, such as the UNIDROIT Principles of International Commercial Contracts. Similarly, UNCITRAL (an acronym for the United Nations Centre for International Law) sets out rules, such as the UNCITRAL Conciliation Rules.

How are international trade disputes resolved?

International disputes are usually resolved through negotiation. Many contracts contain a clause that sets out how disputes will be resolved. Often, conciliation or arbitration is set out in the contract as the approved dispute resolution method. These methods are preferred as it avoids the need for the law of one country to be chosen to apply to the dispute.

What are the UNCITRAL Conciliation and Arbitration Rules?

The UNCITRAL Conciliation Rules and the UNCITRAL Arbitration Rules are guides to, and rules for, the conduct of conciliation and arbitration internationally. The Rules cover all aspects of the conciliation and arbitration process, setting out the procedural aspects from start to finish, including the selection of a conciliator or arbitrator. The Rules also address issues such as confidentiality and admissibility of evidence.

What if neither conciliation nor arbitration is possible?

If neither conciliation nor arbitration is suitable for the resolution of a dispute, it will be necessary for the dispute to be taken through a domestic legal system. Usually, the principles of contract will determine which legal system applies to the dispute. In this instance, each party will need to obtain a solicitor who is qualified to represent them in that country.

For more information and for a chance to speak to a solicitor about your situation call us on 0800 1777 162 and let our case handlers find the right solicitor for your needs. Our service is free. For further information, have a look at the menu on the right-hand side or use our search function.