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The agreement and the increasing role of the HKIAC enhances the city's reputation as an international finance centre and underlines trust in our core values of judicial independence and the rule of law.

Shot in arm for our rule of law

While this city prides itself on being a good place to do business, it is less well known as a popular venue for resolving commercial disputes involving other people's affairs.

While this city prides itself on being a good place to do business, it is less well known as a popular venue for resolving commercial disputes involving other people's affairs. It will become more widely recognised under an agreement with the Permanent Court of Arbitration in The Hague, which handles disputes between or involving nations. The agreement means Hong Kong's well-respected International Arbitration Centre could handle some of the court's 100-odd outstanding cases, including many between Asian parties.

People locked in commercial disputes often threaten to take each other to court. But all around the world, more businesses are turning to arbitration to resolve their differences. The process is usually less costly and time-consuming than a lawsuit, yet the outcome is legally binding. Parties from jurisdictions near and far have turned to our International Arbitration Centre for administered arbitration or dispute resolution of cases involving billions of dollars.

China has now signed a host country agreement with the Permanent Court of Arbitration, while Hong Kong has signed a memorandum allowing it to conduct dispute hearings. Secretary for Justice Rimsky Yuen Kwok-keung says there is an increasing demand for arbitration of disputes in Asia involving states, inter-government organisations and private parties. He rightly credited Hong Kong's judicial independence and rule of law with making it an ideal venue for international arbitration.

Chinese parties remain frequent users of HKIAC arbitration, along with Taiwan, the US, Singapore, the British Virgin Islands, South Korea, the Cayman Islands, Germany, Japan and the Philippines. Commercial, corporate and maritime are the main sectors, with growth in intellectual property-related disputes.

The agreement and the increasing role of the HKIAC enhances the city's reputation as an international finance centre and underlines trust in our core values of judicial independence and the rule of law.

This article appeared in the South China Morning Post print edition as: Shot in arm for our rule of law
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