When we think of law, we usually picture a trial, a judge, and a courtroom. But not every dispute is resolved in a country’s courts. In a world where companies operate across different markets, governments sign treaties, and investments cross borders, many disputes require alternatives to national courts.
That’s where international arbitration comes in: a legal specialty that operates across different legal systems, languages, and cultures, and one you can pursue through Esade’s Double Degree in Law and Global Governance, Economics and Legal Order.
If you’re interested in international relations, geopolitics, and dispute resolution, keep reading. You may be looking at one of the areas of legal practice with the strongest international career prospects.
What is international arbitration?
It’s a method of resolving disputes between parties from different countries without going through the ordinary courts. But what exactly is international arbitration, and who resolves these disputes?
In international arbitration, the case isn’t decided by a judge from one of the countries involved. Instead, the parties agree to have the dispute resolved by one or more independent arbitrators. They hear both sides, review the evidence, and issue a final decision known as an arbitral award.
International commercial arbitration vs. investment arbitration
There are different types of international arbitration. Two of the most prominent are international commercial arbitration and investment arbitration:
- Commercial arbitration typically takes place between companies. For example, it may arise when a Spanish company has a dispute with a foreign supplier, or when two companies disagree over an international contract.
- Investment arbitration typically arises between a foreign investor and a state. It may occur when a company believes a country has breached the protections set out in an international investment treaty.
Key features and principles of international arbitration
The main characteristics of international arbitration help explain why, in some cases, it can be an effective alternative to litigation:
- Neutrality: Because the parties are based in different countries, they’re often reluctant to litigate before the other party’s national courts. Appointing independent arbitrators helps ensure neutrality.
- Expertise: Arbitrators are typically specialists in the subject matter of the dispute, whether that’s international trade, energy, construction, investment, technology, or finance.
- Flexibility: The parties can tailor aspects of the procedure, including the language, the seat of arbitration, the number of arbitrators, and the rules that apply.
- Confidentiality: Many arbitration proceedings allow sensitive information to be handled more privately than in open court.
The key principles of international arbitration include equality between the parties, the right to be heard, and the independence and impartiality of the arbitrators.
Types of international arbitration: institutions, rules, and examples
One of the main distinctions between the different types of international arbitration is the difference between institutional arbitration and ad hoc arbitration.
Characteristics of institutional arbitration
- An arbitral institution administers the proceedings. It provides procedural rules, oversees certain aspects of the process, and helps ensure the case progresses efficiently.
- Institutions: Some of the best-known arbitral institutions include the International Court of Arbitration of the International Chamber of Commerce (ICC) in Paris, the London Court of International Arbitration (LCIA), the SCC Arbitration Institute in Stockholm, and the International Centre for Settlement of Investment Disputes (ICSID), which specializes in disputes between foreign investors and states.
- Rules: Proceedings are generally conducted under the rules of the institution administering the case, such as the ICC Rules, LCIA Rules, SCC Rules, or ICSID Rules.
- Example: In Vattenfall v. Germany, the Swedish energy company Vattenfall initiated arbitration proceedings against Germany over the country’s decision to phase out nuclear energy. The case was administered by ICSID.
Characteristics of ad hoc arbitration
- No institution administers the proceedings. Instead, the parties organize the arbitration themselves, usually under a set of rules they have agreed on in advance.
- Rules: The most widely used are the UNCITRAL Arbitration Rules. In other cases, the parties may agree on bespoke procedural rules or rely on organizations such as the Permanent Court of Arbitration to assist with certain aspects of the proceedings.
- Example: In Yukos Universal v. Russia, the dispute arose from a series of actions by the Russian state, including tax claims and the auction of assets, which Yukos Universal argued had destroyed the value of its investment. The case was conducted under the UNCITRAL Arbitration Rules.
How the international arbitration process Works
The international arbitration process varies depending on the rules chosen by the parties. Even so, it generally follows a common structure:
- Arbitration agreement: Everything begins with an agreement between the parties establishing that any future dispute may be resolved through arbitration. This agreement may be included in a contract, concluded after a dispute arises, or derive from an international treaty.
- Request for arbitration: Once a dispute arises, one of the parties files a request for arbitration. This sets out the nature of the dispute, identifies the other party, and summarizes the relief sought.
- Constitution of the arbitral tribunal: The tribunal is usually made up of either a sole arbitrator or a panel of three arbitrators.
- Submission of arguments: The parties present their written arguments, together with supporting documents, expert reports, and other evidence.
- Hearing: In some cases, a hearing is held with the lawyers, witnesses, experts, and arbitrators.
- Arbitral award: The tribunal issues its award, which resolves the dispute and is generally binding on the parties.
Advantages and disadvantages of international arbitration compared with litigation
Advantages
- It can provide neutrality by eliminating the need for one party to litigate before the other party’s national courts.
- It allows parties to appoint arbitrators with expertise in the subject matter of the dispute.
- It’s generally more flexible than traditional court proceedings.
- It offers greater confidentiality.
- Arbitral awards can be recognized and enforced in many countries thanks to international treaties.
Disadvantages
- It can be expensive, particularly when it involves large law firms, highly specialized arbitrators, and international experts.
- Some complex arbitration proceedings can take years to conclude.
- The grounds for appealing an arbitral award are limited.
Knowing when and why to choose arbitration is part of what makes a strong international lawyer.
Career opportunities and the profile top law firms look for
International arbitration is a highly specialized field that can open the door to careers in some of the world’s most international legal environments, including major law firms in London, Paris, or New York, specialist boutique firms, the legal departments of multinational companies, arbitral institutions such as the ICC and ICSID, and international organizations.
Among the many career paths available to law graduates, this specialty stands out for one key reason: it requires an international mindset. Lawyers specializing in arbitration may analyze contracts, develop legal strategies, draft submissions, coordinate evidence, interpret treaties, or take part in international hearings.
That’s why leading law firms aren’t simply looking for people who can memorize legal rules. They look for professionals who can work across legal systems, languages, business cultures, and geopolitical contexts.
Key skills for a career in international arbitration
A strong legal foundation is essential for working in international arbitration, but it isn’t enough. A single case may require you to understand economics, politics, business, and current international affairs. Arbitration can also overlap with other areas of law, such as employment law in international workplace disputes, or tax law when disputes involve investments, multinational companies, or cross-border transactions.
In addition, this field requires a number of specific skills, including:
- Legal reasoning.
- Analytical skills.
- Strong written and oral advocacy skills.
- Foreign language proficiency.
- Attention to detail.
- The ability to work in multicultural teams.
How to choose the right education in international law and arbitration
As we’ve seen, international arbitration requires a strong legal foundation, as well as an understanding of the global context. That’s why programs such as Esade’s Double Degree in Law and Bachelor in Global Governance, Economics and Legal Order provide the knowledge, tools, and skills you’ll need to build a career in this field.
By combining law with global governance, economics, geopolitics, and international relations, this program offers a broader perspective on legal issues. It’s not just about studying the law. It’s about learning to understand the world in which those laws are applied.
Frequently asked questions
What is international arbitration, and how is it different from litigation?
It’s a method of resolving disputes between parties from different countries without going through the ordinary courts. The main difference is that the case is decided by independent arbitrators rather than a judge.
What are the most common types of international arbitration?
The most common types are international commercial arbitration, which takes place between companies, and investment arbitration, which involves foreign investors and states. Arbitration may also be institutional or ad hoc.
What are the advantages of arbitration over litigation in national courts?
It can provide neutrality, specialized arbitrators, greater flexibility, confidentiality, and make it easier to enforce decisions across different countries.
What qualifications do I need to work in international arbitration?
You’ll need a strong foundation in law, as well as foreign language skills, an international outlook, strong analytical abilities, and an understanding of economics and geopolitics. That’s why a double degree combining Law and Global Governance is a particularly strong route into this field.
If you’d like to learn more about preparing for a career in international arbitration, explore Esade’s Double Degree in Law and Global Governance, Economics and Legal Order.
