Are you a business owner?  Do you do business with companies located in foreign countries?  Have you ever tried to sue someone located in a foreign country?  The reality is that until there is a “One-World Government,” there will be no easy way to resolve international business disputes.  However, there is another option that can assist you in protecting your business in international business.  The International Arbitration Clause, or International Dispute Resolution Clause is a clause often inserted into a contract between two or more companies from different countries.  The clause requires that the parties resolve all disputes through binding arbitration.  The arbitration decision can then be enforced in the other party’s home country, where they may have assets and capital.

The issue though is whether the other party’s country is a member of a bilateral international treaty with your country.  These treaties recognize and enforce international arbitration clauses and provide an enforcement mechanism for international commercial disputes.

Not all International Arbitration Clauses are created equal, and not all arbitration institutes are suited for your industry or business.  An international business consultant can explain the various types of clauses available and help you work with a lawyer licensed in your jurisdiction to draft a dispute resolution clause that properly protects your business.