On 27th November 2020, the Mexican Foreign Affairs Office and the Permanent Court of Arbitration concluded a Framework Cooperation Agreement. It aims to the promotion of pacific settlement of disputes.
Specifically, the Agreement seeks to "aid in developing the court’s activities in Mexico, including the exchange of information; the organization of seminars, workshops and similar events; increasing the awareness of the Court ́s activities related to arbitration and dispute settlement; promoting an internship program; acting as a bridge between the academy and the private sector; and working on joint publications."
The further cooperation between the two of them will lead to the conclusion of a Host Country Agreement which would enable the establishment of a branch of the Permanent Court of Arbitration in Mexico.
The Permanent Court of Arbitration was established in 1899 after the Convention for the Peaceful Settlement of Disputes.
It is not limited to the settlement of disputes between States, it can approach disputes between States and entities, intergovernmental organizations, and non-state actors such as corporations.
The use of International Courts is common in the case of a dispute between States and foreign corporations, since the use of national courts would favour the State.
In the case of a dispute between a State and a corporation, it is possible to bring the case after the Permanent Court of Arbitration. However, most of the times, it will be brought to the court foreseen in the trade agreement that rules the relationship between both of the parties, or through the court that is foreseen in the contract.
Learn more about how and why is Singapore becoming a new hub for international arbitration.
The PCA has swell the faculty to rule disputes between countries in concerns of territory, use of force and treaty interpretation.
Why would arbitration be chosen over a judicial resolution (Permanent Court of Arbitration vs International Court of Justice)?
There are two means to the settlement of disputes between countries; judicial and non-judicial.
Judicial means apply the rule of law and not political factors for the peaceful settlement of disputes.
The judicial are for example:
Non-judicial or diplomatic, stem from the Manila Declaration on the Peaceful Settlement of International Disputes adopted in 1982.
The settlement through these means will rely mostly on political factors.
Peaceful settlement of disputes that inlcude a third party when the two involved parties can not reach a settlement:
Permanent Court of Arbitration
Martin Dixon, Textbook on International Law.
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