Is the country a signatory to the New York Convention? Are there any reservations to the general obligations of the Convention?
International Arbitration (2nd Edition)
Malaysia unreservedly acceded to the New York Convention in 1985. The country has since incorporated the Convention’s principles into its arbitration legislation. This is exemplified by the two-stage choice of law analysis of the law governing the arbitration agreement under section 39(1)(a)(ii), AA which mirrors the corresponding test under Article V(1)(a), New York Convention.
Chile signed and ratified with no reservations the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards on September 4th 1975, which entered into force on December of the same year.
Portugal acceded to the New York Convention on 18 October 1994.
The Portuguese State made a reciprocity reservation in the following terms: “Within the scope of the principle of reciprocity, Portugal will restrict the application of the Convention to arbitral awards pronounced in the territory of a State bound by the said Convention.”
Without prejudice to the New York Convention mandatory provisions, as well as to other treaties or conventions which are binding on the Portuguese State, LAV establishes that the awards made in arbitrations seated abroad are only effective in Portugal, regardless of the nationality of the parties, if such awards have been recognised by the competent Portuguese State court. LAV sets the grounds for refusal of recognition and enforcement and governs its procedure.
Luxembourg is party to the New York Convention, which was approved by the Law of 20 May 1983. The Law specifies that the Convention will apply on the basis of reciprocity for the recognition and enforcement of arbitration awards made in the territory of another contracting state.
Switzerland ratified the New York Convention in 1965 without making any reservations to the general obligations of the Convention. With the PILA having entered into force on 1 January 1989 the reciprocity reservation of Switzerland was withdrawn and the New York Convention applies erga omnes.
Ukraine ratified the New York Convention in 1960 and it entered into force for Ukraine the next year. As for the reservations, Ukraine applies the provisions of the New York Convention in respect of arbitral awards made in the territories of non-contracting States and only to the extent to which they grant reciprocal treatment.
Germany is a signatory to the New York Convention, which entered into force in Germany on 28 September 1961. Germany’s initial reciprocity reservation was withdrawn in 1998.
Panama is a signatory to the New York Convention, without reservations. The convention entered into force for Panama on June 15, 1984.
The UAE is a signatory to the New York Convention since 2006 with no reservations to the general conditions of this convention.
Sweden is a signatory to the New York Convention and has ratified the Convention in 1972 without either the “reciprocity” reservation or the “commercial nature” reservation available for the signatories.
Spain ratified the 1958 New York Convention on the 29th April 1977. Spain made no reservations to the Convention. Once ratified by Spain, the original text of the Convention formed part of the Spanish legal system.
The New York Convention entered into force in former Yugoslavia in October 1981. After the dissolution of former Yugoslavia, Serbia remained a party to New York Convention by virtue of succession.
As for the reservations to the New York Convention which apply to Serbia, there are three such reservations currently in force: (1) The Convention is applied only to those arbitral awards which were adopted after the coming of the Convention into effect (i.e. no retroactive effect); (2) Convention is applied on a reciprocal basis only to those arbitral awards which were adopted on the territory of the other State Party to the Convention and (3) Convention is applied with respect to the disputes arising from the legal relations, contractual and non-contractual, which, according to Serbian national legislation are considered as economic (i.e. commercial).
The Philippine is a signatory to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards signed in New York on 10 June 1958 (“New York Convention”) which governs the recognition and enforcement of foreign arbitral awards in the Philippines since its ratification of the same on 06 July 1967. The Philippines made the Reservation that the Philippine delegation signs ad referendum with the reservation that it does so on the basis of reciprocity. As provided in Article 1, paragraph 3 of the New York Convention, the Philippines made a Declaration upon ratification of the New York Convention that the Philippines, on the basis of reciprocity, will apply the Convention to the recognition and enforcement of awards made only in the territory of another Contracting State and only to differences arising out of legal relationships, whether contractual or not, which are considered as commercial under the national law of the State making such declaration.
However, the Philippine courts can, on grounds of comity and reciprocity, recognise and enforce a foreign arbitral award made in a country that is not a signatory to the New York Convention. Therefore, countries that are not a party to the New York Convention can still be accorded the privileges under the New York Convention if they accord the Philippines the same treatment.
Further, the Philippine courts may refuse recognition and enforcement of an arbitral award if: (a) the subject matter of the dispute is not capable of settlement by arbitration in the Philippines; and (b) the recognition or enforcement of the award would be contrary to the public policy of the Philippines.
Yes, India is a signatory to New York Convention (signed on 10th June 1958). India only applies the convention to the enforcement of foreign awards. It may also be noted that before the coming into force of the Arbitration and Conciliation Act, 1996 with effect from 16-8-1996, the law relating to domestic arbitration was contained in the Arbitration Act, 1940, which in turn was brought in place of the Arbitration Act, 1899. Apart from the Arbitration Act, 1940, there were two other enactments of the same genre. One called the Arbitration (Protocol and Convention) Act, 1937 (for execution of the Geneva Convention Awards) and the other called the Foreign Awards (Recognition and Enforcement) Act, 1961 (for enforcement of the New York Convention Awards). The aforesaid three Acts were replaced by the Arbitration and Conciliation Act, 1996, which is based on the United Nations Commission on International Trade Law (UNCITRAL) Model and is broadly compatible with the “Rules of Arbitration of the International Chamber of Commerce”. [Fuerst Day Lawson Ltd. v. Jindal Exports Ltd., (2011) 8 SCC 333]
Yes, Ecuador is a signatory to the Convention on Recognition and Execution of Foreign Arbitral Awards, promoted by the United Nations; it was signed by the Ecuadorian government on December 17, 1958. The New York Convention was ratified by Ecuador and was published in Official Gazette 43 of December 29, 1961 for application on a reciprocity basis and when awards are derived from matters regarded by Ecuadorian law as commercial relationships.
Norway is a signatory to the New York Convention, and ratified the Convention in 1961. There are no reservations to the general obligations of the Convention, and its provisions are incorporated in the Norwegian Arbitration Act of 2004.
Egypt has been a party to the New York Convention since 1959. There are no reservations.
Croatia is a party to the New York Convention. The Convention was initially acceded by the former Socialist Federal Republic of Yugoslavia in 1982 and entered into force on 8 October 1991. After the dissolution from Yugoslavia, Croatia became a party to the Convention by way of notification on succession of 26 July 1993.
Croatia adhered to the reservations to the general obligations of the Convention made by the former Yugoslavia. Thus, the Convention is applied only to those arbitral awards which were adopted on the territory of another contracting state after the Convention entered into effect and with respect to the disputes which are considered as commercial under Croatian law.
Cyprus is a party to the New York Convention which has been ratified by the Ratification Law 84/1979.
Cyprus as a signatory to the New York Convention has made a specific reservation of reciprocity i.e. Cyprus Courts recognize arbitral awards which are issued in a state which is also a signatory to the New York Convention.
France is a signatory to the New York Convention, which entered into force in France on 24 September 1959. France has made a reciprocity reservation, but the provisions applicable to the recognition and enforcement of foreign awards are applicable to all awards rendered in foreign countries, regardless of whether they are signatories of the New York Convention or not. In practice, the New York Convention is rarely applied in France, as French arbitration rules on recognition and enforcement are generally more favourable than the New York Convention (for example, on the requirement of an agreement in writing).
Italy is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Italy did not formulate any reservation to the general obligations of the Convention.
Nigeria is a signatory to the New York Convention having acceded to it on March 17, 1970. The Convention came into force on June 15, 1970. The New York Convention now forms part of the primary legislation having been made expressly applicable to Nigeria by section 54 of the ACA and is set out in the Schedule Two (2) to the ACA.
There are reservations in Nigeria to the Convention. Section 54 of the ACA emphasize the provisions of Articles IX and XI of the New York Convention. In accordance with Article I(3) of the New York Convention, the Convention is applied in Nigeria on the basis that there is a reciprocal recognition and enforcement of awards made in Nigeria in the territory of a member state whose award is to be enforced in Nigeria.
Austria signed the New York Convention back in 1961 and withdrew an initial reservation in 1988. Since then, the Convention fully applies in Austria.
Greece is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Greece has acceded to the New York Convention by virtue of Legislative Decree (LD) 4220/1961 (entry into force on October 14, 1962). Under article 28 of the Greek Constitution the provisions of the New York Convention prevail over all conflicting provisions of Greek law. Greece has made both the reciprocity as well as the commercial reservation under article I (3) of the New York Convention. Regarding the former reservation however, it is noted that under article 36 L. 2735/1999, the provisions of said Legislative Decree transposing into Greek law the New York Convention, are generally applicable to all foreign arbitral awards. Hence, they are applicable also to awards made in a country which has not ratified the New York Convention.
The United States has been party to the New York Convention since its entry into force on 29 December 1970. (9 U.S.C. §§ 201–08). The United States has made two declarations to the New York Convention which limit its application to (i) awards made in the territory of another State Party to the Convention and (ii) differences arising from a legal relationship which is commercial in nature.
Israel has ratified the New York Convention on January 5, 1959 and the convention entered into force in Israel on June 7, 1959 without any reservations. It is noted that the New York Convention was adopted in Israel in two stages. At first, Israel adopted the provisions relating to the enforcement of an arbitration agreement or to stay of proceedings, and subsequently the provisions of the convention with respect of the enforcement of foreign arbitral awards were also adopted. In 1978 regulations were enacted in Israel for the performance of the New York Convention and with this the State of Israel accepted the provisions of the convention into its internal legislation.
The New York Convention entered into force in the United Kingdom on 23 December 1975, with a reciprocity reservation. The United Kingdom has also submitted notifications extending the territorial application of the New York Convention to Gibraltar, Isle of Man, Bermuda, Cayman Islands, Guernsey, Jersey and the BVI.
Romania ratified the New York Convention in 1961 by means of Decree no. 186/1961 which came into force on July 24 1961.
Romania reserved the right to apply the convention only to:
- the recognition and enforcement of awards made in the territory of another contracting state or, for the awards made in non-contracting states, only subject to reciprocity, namely to the extent to which those states grant reciprocal treatment.
- disputes arising from legal relationships – whether contractual or not – that are considered commercial under the national law.
The Republic of Turkey is a party to the New York Convention since 2 July 1992. Turkey had and still has two reservations to the general obligations of the Convention : the “reciprocity” and the “commercial” reservations. As a result of the reciprocity reservation, Turkey will only recognize and enforce arbitral awards made in other states that are signatories to the Convention.Similarly, the scope of recognition and enforcement must have ‘’commercial nature’’ under Turkish law, due to the ‘’commercial’’ reservation. Otherwise, it is possible to enforce the award according to the International Private Law and Procedural Law No. 5718.