Leading Australian Arbitration Body Welcomes Government Reform 2

President
Douglas Jones AM RFD

Australian Centre for Commercial International Arbitration Vice Presidents
www.acica.org.au Alex Baykitch
Ian Govey
Peter Megens

Media Alert 20 June 2010 Immediate Past President
Michael Pryles AM

Board Members
Leading Australian arbitration body welcomes government reform James N Creer
Richard Garnett

Laurie Glanfield AM
The President of the Australian Centre for Commercial International Arbitration Peter Harris
Malcolm Holmes QC
(ACICA), Doug Jones AM, today welcomed amendments to the International
The Hon. Michael Kirby AC CMG
Arbitration Act 1974 (Cth), the most significant reform to international Robert Kus
Judith Levine
commercial arbitration in more than 20 years.
Peter McQueen
Gabril Moens
Ian Nosworthy
Professor Jones said these changes will position Australia as a key player in the
Robert Regan
international market. Ronald Salter
Michael Shand QC

Geoff McClellan
"Commercial arbitration is a multi-billion dollar industry and is becoming the Georgia Quick

preferred option for solving business disputes because it is quicker, cheaper and
Director of Arbitration
less formal than going through the courts. David Fairlie

Secretary General
The anticipated increase of international arbitrations in Australia will also
Emma Matthews
provide considerable financial benefits to the Australian economy. Head Office
Level 6, 50 Park Street

Sydney NSW 2000
We congratulate the Attorney General for taking the lead in this long overdue Australia
Ph: +61 2 9286 3591
reform agenda."
Fax: + 61 2 9267 3125
[email protected]

Changes to the International Arbitration Act and the adoption of a new model
Deputy Secretary General
law for domestic arbitration means that Australia will now have a harmonised Jonathon DeBoos
system for both domestic and international arbitration. Melbourne Office
Level 18, 333 Collins Street
"It will encourage a very significant investment flow for Australia," Professor Melbourne VIC 3000
Australia
Jones said. Ph: +61 3 9286 6328
Fax: +61 3 9286 6460
"As a venue, from a legal perspective, Australia is as desirable, if not more [email protected]

desirable, than anywhere else in our region," he said. Deputy Secretary General
Gabril Moens
A designated appointing authority for various Australian legislation, ACICA is Perth Office
Western Australian Institute for Dispute
Australia's only international arbitral institution and has agreements with over 50 Management
global institutes. On 25 May it signed an historic agreement with the world's South Street, Murdoch WA 6150
Ph: +61 8 9360 7563
oldest intergovernmental institution for international dispute resolution, the [email protected]
Permanent Court of Arbitration (PCA) to promote the utilisation and education of
ACN 006 404 664
arbitration in the Asia- Pacific.

ends



For more information: Gianna Totaro
Media Relations 0438 337 328 [email protected]



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BACKGROUND


About the Australian Centre for International Commercial Arbitration (ACICA)

The Australian Centre for International Commercial Arbitration (ACICA) is Australia's only international arbitral
institution. Established in 1985 as a not-for-profit public company, its membership includes world leading practitioners
and academics expert in the field of international and domestic commercial arbitration. ACICA aims to educate,
promote and encourage the use of international commercial arbitration as a means of dispute resolution, and to
promote Australia as an international seat of arbitration.

What is international arbitration?

International Arbitration is a system of dispute resolution selected by many of the world's leading international
companies. Most importantly arbitration agreements and arbitral awards are enforceable worldwide under an
international law known as the New York Convention. By inserting an arbitration clause into their agreements with
trading partners, parties opt to have disputes arising out of or in connection with the contract decided by private
tribunals ('arbitral tribunals') rather than litigating them in national courts. Arbitration is particularly common in the
insurance, construction and engineering, oil, gas and shipping industries and increasingly so, in banking and financial
services.

Benefits of attracting more international arbitrations to Australia

" ... Australia is well placed to meet the growing demand for first-rate, cost-effective arbitration services in the Asia-
Pacific. Australian arbitration practitioners are among the world's best. Australia is also politically and economically
stable and it offers first-class communication and transport facilities. Furthermore, the Australian Centre for
International Commercial Arbitration which is hosting this conference provides excellent institutional support for
international arbitration. ..." The Hon Robert McClelland, Australian Attorney General, 21 November 2008

How much is the market in international dispute resolution growing?
In 2008 a PricewaterhouseCoopers survey, 'International Arbitration: Corporate attitudes and practices',
revealed 73% of corporations prefer to use arbitration to resolve their cross-border disputes rather than
transnational litigation and saw arbitration as a means to successfully preserve business relationships.

2009 figures reveal that the number of cases handled by major international arbitration centres have increased
from between 50 to 150 percent over the past decade.

ACICA note the reason for the rapid growth is largely due to the global financial crisis which has seen an increase
of commercial disputes. ACICA note because international investors want to avoid the uncertainty of litigation
in a foreign court system - excessive time and costs, the lack of familiarity with foreign court procedures,
language barriers, a lack of confidentiality and a fear some countries may lack impartial judiciary - arbitration
has become preferred dispute resolution mechanism.

Hong Kong and Singapore are presently the leaders in international dispute in the Asia Pacific. The Hong Kong
International Arbitration Centre's cases doubled to 602 in 2008 from 2000. In Hong Kong, the overall market for
legal services accounted for about 0.7 percent of Hong Kong's GDP in 2007, or HK$10.5 billion (US$1.3 billion),
according to the Census and Statistics Department.

The Singapore International Arbitration Centre had a 71 percent rise in cases to 99 from 2000 to 2008. In 2007, the
overall legal services sector in Singapore was 0.5 percent or S$1.3 billion (US$902 million) and 0.6 percent in
2008, according to Statistics Singapore.