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Welcome to a new video of Leyton News Opportunity. This video helps you explore every aspect required when preparing for exports on an international scale!
International exporters are constantly at risk. Faced with unpredictable conditions and a lack of specific insurance, international exporters are highly susceptible to conflict.
Risks can transition into conflict with various entities, whether it be a state, supplier, or anyone involved in the process. For this reason, you’ll need to have a way to diffuse problematic situations amicably. One way to do this is through international arbitration.
Watch the video below to learn more…
For the past three to four years, there has been a strong demand for specific insurance, not only for intellectual property but also for climate change and exportation risks, however, the demand remains unfulfilled. Nonetheless, there is a viable solution…
As with any project, issues may arise, such as disputes, and failing vendors or distributors, to name a few. In such a case, the involved parties may prematurely engage in time- and resource-consuming activities such as litigation. However, there is an alternative solution requiring less time and energy: international arbitration.
This practice relies on the will of all parties to sign a contract for a neutral party to render a decision that would benefit everyone. In other words, arbitration is an alternative dispute resolution (ADR) method consisting of redirection to one or more private entities chosen by the parties to obtain a binding decision. Far from being new, arbitration has become an institution of its own and offers a range of solutions, including ad hoc arbitration, institutional arbitration, and assisted arbitration.
Only the parties and the arbitrators are involved in ad hoc arbitration. It is defined in the clauses of the original contract and if there is a dispute, the parties themselves apply the clause, choose the arbitrator and manage the arbitration process.
With institutional arbitration, arbitration has been entrusted by the parties to an arbitration institution and will be held in accordance with the arbitration rules used by the institution.
Assisted arbitration is a compromise between ad hoc and institutional arbitration. The parties draft the arbitration clause autonomously (and/or with professional help) and appoint an institution to apply it on their behalf so none of the parties can delay the procedure.
This arbitration institution has no real power or any imperium of any kind; its power comes from an agreement between parties and has no physical place, typical contracts, specific language to be used, or rules for procedures.
Supporters of arbitration usually use the following arguments to implement this form of alternative dispute resolution:
Arbitration is typically faster than litigation as the parties can lock arbitration into a time limit, which is not true for litigation (with litigation, a company is a prisoner of its procedural rules and the victim of its congestion).
However, when involving larger interests as when dealing with States, big companies, dangerous areas, etc…, international arbitrations can occur and can be even more complex than traditional litigations due to the accumulation of different international procedures, and the necessity to compile documents in multiple languages, among other factors.
Confidentiality is usually practiced by all parties and arbitrators as discretion is undoubtedly the most appreciated advantage while doing business, especially at times when the media reports information about companies and their ongoing business interests. Published arbitral case law is limited, with some exceptions, to decisions whose judicial history has been complicated by an appeal to subsequent litigation (appeal or annulment).
The flexibility of ADR compared to litigation is one of the benefits of this approach procedure. On the one hand, the parties renounce the rigidity of the procedures, and, on the other hand, parties can seek a balanced solution. Professional arbitrators are reluctant to place all blame on the losing party when the losing party is not in total denial.
The PEX, Quebec program to support export activities, and the CanExport program are both on hold until 2022. The PEX will transition into the PSCE, Programme de Soutien à la Commercialisation et à l’Exportation. While CanExport program will be back in January 2022 with a new format.
You can use this time to think about every topic we mentioned in our videos. Do not hesitate to contact us when your project is ready. We will be waiting for you!
If you want more information about all exportation opportunities and how we can help you access funding, contact one of our experts today!
The LENO video series will focus on helping you understand how to build and manage international cooperation projects and grants, and give you a sneak-peak at an international project we are working on at Leyton.
Antoine Giroir has a master’s in International Relations with experience in European project management and proposal writing. He has worked with researchers and entrepreneurs on various topics, from sustainable development to oncology targeting, in the European Union, the United States of America, and the People’s Republic of China. He is now helping Leyton’s clients leverage public funding (federal and provincial) to achieve their objectives while lowering the financial risks.