As a common law jurisdiction with a written constitution and a Member State of the European Union, Ireland has a great many advantages for parties who wish to arbitrate their disputes here.

It has implemented the UNCITRAL Model Law on International Commercial Arbitration with which arbitrators and legal practitioners are very familiar. It is an English speaking, neutral country with a vibrant economy. It provides a cost competitive 21st century arbitration infrastructure to the parties. The government, courts, legal profession are very supportive of the arbitral process.

Its capital city, Dublin, is also a very attractive and friendly place, steeped in history yet with all the amenities of a modern cosmopolitan city readily to hand.

(i) A familiar legal framework: UNCITRAL Model Law

In 1998 the UNCITRAL Model Law was implemented in Irish law, in the Arbitration (International Commercial) Act 1998. This legislation was enacted to give effect to the Model Law, with some modifications designed to strengthen the autonomy of international arbitrations taking place in Ireland.

Section 4 of the Arbitration (International Commercial) Act 1998 provides that the Model Law shall apply within the State, subject to the provisions of Part II of the Act. Part II of the Act contains a number of provisions to assist in interpreting the Model Law and a number of minor amendments. These additions are all designed to enhance the autonomy of the arbitration process.

(a) Autonomy of the parties

Possibly the most important feature of the Model Law is the extent to which it enshrines the principle of the autonomy of the parties and curtails the circumstances in which court intervention may occur to certain well-defined and recognised instances. Article 5 contains the following unequivocal statement.

"In matters governed by this Law no court shall intervene except where so provided in this Law."

The grounds for the setting aside of an award are specified in Article 34 of the Model Law and it is expressly stated that an application to set aside an award under these limited grounds is the only means of recourse against an award. The grounds mentioned in Article 34 are well recognised internationally as they are virtually identical to the grounds specified in Article V of the New York Convention as the grounds which may justify the refusal to recognise or enforce and arbitral award.

(b) Limited court intervention

The Model Law recognises a limited role for the courts in assisting the arbitral tribunal. Article 9 states:

"It is not incompatible with an arbitration agreement for a party to request, before or during arbitral proceedings, from a court an interim measure of protection and for a court to grant such measure."

Section 7 of the 1998 Act provides for limited court intervention along the lines envisaged by article 9. Article 27 of the Model Law makes provision for a request from the arbitral tribunal, or a party with the consent of the arbitral tribunal, for court assistance in taking evidence. Section 7 of the Act also sets out the forms of court order, which it is envisaged might be made in this regard.

(c) Kompetenz / Kompetenz

The Model Law removes any doubt over the power of the arbitral tribunal to rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement; the issue often referred to as Kompetenz / Kompetenz. Any objection to jurisdiction must be raised no later than submission of a statement of defence. Provision is made for the arbitral tribunal to make a preliminary ruling on jurisdiction if it wishes. If an arbitral tribunal makes a preliminary ruling that it has jurisdiction, the dissatisfied party may appeal the ruling of the tribunal to the High Court within 30 days.

(d) Additional Provisions

The Arbitration (International Commercial) Act 1998 contains a number of additional provisions, which are designed to enhance the UNCITRAL Model Law and add to the attraction of Ireland as a venue for arbitration:-

• Section 12 of the Act confers a form of immunity from suit on an arbitrator; provided the arbitrator does not act in bad faith he shall not be liable. Furthermore witnesses and lawyers appearing at the arbitration are given the same immunity as witnesses and lawyers have respectively when appearing in the High Court in Ireland.
• Section 10 of the Act confirms the powers of an arbitral tribunal to grant interest on their awards. Although it is established practice internationally to grant such interest the Model Law does not mention the issue.
• Section 11 of the Act deals with the costs of the arbitration. The Model Law is silent on this issue also. Essentially section 11 confirms that the parties may agree between themselves as to how the costs are to be allocated and what costs are to be recoverable. If the parties have agreed to be bound by the rules of an arbitral institution then the rules of that institution on costs are to apply. In the absence of agreement the arbitral tribunal can only award costs as between the parties with the consent of the parties. If there is no such consent provision is made for an application to the Court to make a determination as to the recoverable costs as between the parties.

(ii) Judicial deference to arbitral process

Ireland has a long-established and reliable judicial system which supports the conduct of arbitration. Where the courts have been called in aid, they have shown a marked unwillingness to intervene to the detriment of the arbitral process and have interpreted narrowly defences to enforcement of awards. Ireland is therefore a location where the arbitral process will be respected.

 (iii) Business and Economic Support

Ireland enjoys strong economic growth and offers a stable, profitable, English-speaking base to serve the European market and beyond. It is a world leader in a number of areas of economic performance. Exports account for three-quarters of national output, a level unique within Europe.

Our success is being shared by many American, Asian and European companies, over 1,200 of which have chosen Ireland as their base to serve the global market. Here, they find a favourable tax environment, competitive operating costs and a highly skilled, educated, productive and flexible workforce.

Major European centres are within 2 hours flying time of Dublin. Completion of new road and sea routes is bringing Europe within easy access, and competitive air travel now links Irish business with the world. Trading with Ireland is now more cost efficient and easier than it has ever been. Ireland is also well prepared for the e-commerce age through the liberalisation of its communications services market, investment in broadband infrastructure and the most e-commerce friendly regulatory environment in Europe.
Industrial Development Authority (IDA)

(iv) Pool of Arbitration Expertise

In Ireland there is a pool of highly skilled and experienced lawyers who are available to act in international arbitrations.

(v) Neutrality

As a neutral country without a colonial past, Ireland is particularly suited to international arbitration. Much international arbitration involves disputes between parties from the developing world, often States or State entities, and multinational corporations, who are more likely to give preference to a neutral country as the seat of the arbitration.