Kastom: A Public Policy Exception Under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards

Appraisal of the Success of the Instruments of International Commercial Arbitration vs. Litigation and Mediation in the Harmonization of the Rules of Transnational Commercial Dispute Settlement

“…[36] Arbitration enables the parties to escape from the jurisdiction of national courts and pursue resolutions in delocalized, private proceedings. [37] Subjugating transnational disputes to national courts often gives rise to the risk of local bias, corruption, national public policy exceptions [38], delay, lack of cross border expertise by local judges, lack of knowledge and respect to foreign laws, and the risk of litigation in an unfamiliar language and so on. [39] Besides, the atmosphere of arbitration is generally considered less hostile than that of litigation.…”

“…[70] The main purpose of the Convention is to facilitate the international recognition and enforcement of arbitral awards and thereby result in a speedier and cheaper settlement of disputes. [71] The New York Convention has been astonishingly successful in achieving these objectives. [72] By March 1, 2020, it had been accepted by 163 countries, including almost all of the major trading nations of the world, and with geographic diversity in ratification.…”