International arbitration is a private, binding dispute resolution method conducted by arbitrators instead of state courts. An increasing number of Dutch entrepreneurs are opting for arbitration in cross-border contracts. In our practice, we work with ICC, NAI, LCIA, and SIAC. The benefits are clear: confidentiality, specialist arbitrators, speed, and worldwide enforceability under the 1958 New York Convention.
What is the legal problem?
International disputes before state courts often become bogged down in local procedures, language barriers, and limitations on international enforcement. Arbitration offers a neutral, specialized route with strong international recognition. At the same time, there are costs and specific procedural requirements. A well-considered choice in the contractual dispute resolution clause makes the difference between efficient dispute resolution and years of legal battle.
What does the law say?
The New York Convention of 1958 (170+ countries) obliges contracting parties to recognize and enforce arbitral awards. International institutions such as the ICC, LCIA, NAI, SIAC, and HKIAC offer detailed regulations. The UNCITRAL Model Law (1985, revised 2006) is used as arbitration law by 80+ countries. Under Dutch law, Articles 1020-1076 of the Code of Civil Procedure govern arbitration.
The Singapore Convention of 2019 extends international enforcement to mediation settlements. For consumers, Article 1064 of the Dutch Code of Civil Procedure (annulment) applies, along with additional protection rules.
What risks do companies face?
Without arbitration, you must litigate in a country where the opposing party holds assets, with unfamiliar procedural law. Judgments by Dutch courts are difficult to enforce outside treaty areas. Confidentiality is not guaranteed in state courts. In specific sectors, a general court lacks expertise. For major international disputes, this is a significant risk.
Practical example from our practice
We advised a Dutch engineering firm with a contract with a Central Asian client under ICC arbitration in The Hague. In a dispute regarding the quality of delivered installations, an arbitral award was obtained within 18 months. The award was immediately enforceable in 170 countries under the New York Convention — enforcement was carried out in four countries simultaneously. Local proceedings would have taken many years without international enforcement certainty.
What can you do?
Incorporate arbitration clauses for contracts with international parties and high risk. Choose a reputable institution tailored to your sector and region (NAI for Dutch law, ICC for worldwide). Determine the seat, language, number of arbitrators, and rules in advance. Combine with an emergency arbitrator for urgent measures. For smaller disputes, consider multi-tier clauses with mediation before arbitration. See also our article on Arbitration or court?