NEW YORK, June 23, 2004 – LAWFUEL – According to PricewaterhouseCoopers’
Dispute Analysis & Investigations Services, there has been a 25 percent
increase in international arbitration cases in the last five years, a trend
that PricewaterhouseCoopers anticipates will continue over the next decade,
with a significant number of these cases occurring in South America.
PricewaterhouseCoopers analysis indicates that, corresponding to increased
cross-border trade and investments, there has been significant growth in the
use of international arbitration as opposed to reliance on dispute resolution
in foreign jurisdictions. By permitting disputes to be tried by multi-
disciplinary, multi-national arbitrators, international arbitration has been
able to offer neutrality and flexibility for the involved parties. Arbitration
also offers confidentiality not available by trial in open court.
“The risks associated with arbitration are considered less than the risks
of dealing with the uncertainty associated with various jurisdictions in a
foreign country,” said Patricia Tilton, partner, PricewaterhouseCoopers
Dispute Analysis & Investigations Practice.
Key arbitration canters such as the Arbitration Institute of the Stockholm
Chamber of Commerce have recorded a 40 percent growth in caseload in the last
five years. Investor versus state arbitration — when countries that sign
bi/multi-lateral investment treaties become exposed to action from foreign
investors’ cases — doubled in the last three years.
“We anticipate the next wave of these cases in South America where there
is a great deal of economic turmoil, disputes with host governments and
currency issues,” added Ms. Tilton.
The recent economic downturn in Argentina, in particular, has generated
notable investor claims that the International Centre for the Settlement of
Investment Disputes is currently handling. PricewaterhouseCoopers expects
there will be a large number of other investors with potential claims in South
America that are waiting for the outcome of these cases.
“The advantages of international arbitration over national litigation can
be so great for investors that arbitrations show every prospect for rapid
growth in the next ten years,” said Ms. Tilton. “Most of the top arbitration
lawyers with whom we work are experiencing double digit percentage growth in
their practices.”
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