Academic journal article Journal of Legal, Ethical and Regulatory Issues

To Principles in the Jurisprudence of International Commercial Arbitration: A Comparative Study of the London Court of International Arbitration and the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation

Academic journal article Journal of Legal, Ethical and Regulatory Issues

To Principles in the Jurisprudence of International Commercial Arbitration: A Comparative Study of the London Court of International Arbitration and the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation

Article excerpt

INTRODUCTION

The World Trade Organization is the major institution that provides institutional and legal basis for the development of international trade, thus, promoting international economic integration and contributing to the global economic growth. Many countries that are nonmembers of the WTO regard accession to this institution as an important goal and a practical tool for full participation in the global economy (Inshakova & Kozlova, 2013). Accession of any country to the WTO, however, induces changes and transformations in all economic, legal and political institutions of the country, which requires assessing the impact of WTO membership on every aspect of the country's life. For example, Armenia, Georgia, Moldova greatly improved their economies after joining the WTO. In particular, this referred to a number of economic indices, such as GDP per capita, the number of import and export enterprises and agricultural productivity.

Accession of the developing economies to the WTO has many positive aspects. However, it requires some legislative changes since non-compliance with the required standards will adversely affect economic activities of States and their international relations. Russian Federation was chosen as an example for relevant analysis, since it has great potential, substantial resources and takes up a lot of land.

Russia's accession to the WTO is regarded as rational and advantageous in terms of its national development (Tatarkin & Lineckij, 2011) as it gives the possibility to boost the country's economy and to be fully integrated into the world trade. WTO membership is gradually changing practical settlement of trade disputes in Russia, which is reflected by the implementation of the WTO principles in the arbitration court practice.

Numerous studies were devoted to various legal aspects related to Russia's WTO membership. Mitchell (2008) points out two reasons that make parties use procedures referring to resolution of commercial disputes established within the WTO framework. In particular, this refers to strict regulation of procedures and a sound and effective system of appeal. Both aspects are rarely met at the international level. Smbatjan (2012) considers resolution of commercial disputes established within the WTO framework as one of the most effective mechanisms used to resolve such disputes.

Russia's accession to the WTO that inevitably involves implementation of principles related to the settlement of trade disputes arising from foreign economic transactions led to an increase in the number of disputes that had to be resolved within the framework of the WTO Law. Statistics of the period 2012-2013 shows a growing number of trade disputes that were settled within the WTO framework (International Trade Statistics, 2013). This trend reflects both the emergence of new challenges and disputes in the global market and desire of the WTO member states to protect interests of their domestic producers in terms of competition in both domestic and foreign markets. This clearly contradicts the WTO objectives regarding elimination of barriers to free exchange of goods and services. In this situation, a dispute resolution mechanism is in high demand for all parties of commercial disputes and conflicts.

The WTO is one of few international economic organizations that managed to generate a system of specific legal rules-WTO Law, enshrined in various sources-multilateral agreements and multiple declarations and the term "WTO rules" has been already accepted both at the international level and in the Russian Federation. Ideology of the WTO in relation to its member states and prospective members is primarily aimed at harmonizing legal system of relevant states with the "WTO Law."

WTO Law implies the fact that part of internal competence is subject to the international legal regulation of the international trading system through the system of principles, norms and agreements. …

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