International Commercial Arbitration at Eritrea
International commercial arbitration in Eritrea is characterized by a lack of comprehensive domestic legislation and limited engagement with international arbitration frameworks. This presents unique challenges for parties considering Eritrean jurisdiction in arbitration agreements.
🇪🇷 Legal Framework for Arbitration in Eritrea
1. Domestic Legislation
Eritrea does not have a dedicated national arbitration law or a specialized arbitral institution. The Eritrean Investment Proclamation allows foreign investors to choose between arbitration and litigation in Eritrean courts, but it does not specify the rules or institutions for arbitration .
2. International Conventions
New York Convention (1958): Eritrea is not a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. This means that Eritrean courts are not obligated to recognize and enforce foreign arbitral awards, limiting the international enforceability of such awards .
ICSID Convention: Eritrea is not a member of the International Centre for Settlement of Investment Disputes (ICSID) Convention. Consequently, Eritrean nationals and entities cannot initiate investment arbitration under ICSID auspices, and Eritrea is not subject to ICSID arbitration .
⚖️ Notable Arbitration Cases Involving Eritrea
Despite the absence of a domestic arbitration framework, Eritrea has participated in significant international arbitration proceedings:
Eritrea–Ethiopia Claims Commission (EECC): Established under the Algiers Agreement to resolve claims arising from the 1998–2000 border conflict, the EECC issued binding awards on issues such as territorial sovereignty and the treatment of prisoners of war .
Eritrea–Yemen Maritime Boundary Arbitration: In the late 1990s, Eritrea and Yemen submitted their maritime boundary dispute to arbitration under the Permanent Court of Arbitration. The tribunal issued awards on territorial sovereignty and maritime delimitation, despite Eritrea not being a party to the United Nations Convention on the Law of the Sea .
🧭 Practical Considerations for International Arbitration in Eritrea
Arbitration Agreements: Parties entering into contracts with Eritrean entities should carefully consider the choice of law and venue for arbitration. Given Eritrea's lack of a domestic arbitration framework and non-signatory status to key international conventions, opting for arbitration in a neutral jurisdiction with established rules and enforcement mechanisms is advisable.
Enforcement of Awards: Without adherence to the New York Convention, enforcing foreign arbitral awards in Eritrea may be challenging. Parties should assess the likelihood of enforcement and consider alternative dispute resolution mechanisms that align with Eritrea's legal landscape
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