International Commercial Arbitration at Mongolia
Here’s an overview of International Commercial Arbitration in Mongolia:
1. Legal Framework
Mongolia’s arbitration law is governed primarily by the Law on Arbitration (2010).
This law is largely based on the UNCITRAL Model Law on International Commercial Arbitration (1985), providing a modern and comprehensive legal framework.
Mongolia is a party to the 1958 New York Convention, having acceded to it in 1996, which facilitates the recognition and enforcement of foreign arbitral awards.
2. Arbitral Institutions
Mongolia does not have many well-known local arbitration institutions with international recognition.
The Mongolian National Chamber of Commerce and Industry (MNCCI) provides arbitration services primarily for domestic disputes.
For international arbitration, parties often choose foreign institutions such as:
International Chamber of Commerce (ICC)
Singapore International Arbitration Centre (SIAC)
Stockholm Chamber of Commerce (SCC)
Many contracts involving Mongolian parties specify arbitration outside Mongolia for neutrality and enforceability.
3. Enforcement of Arbitral Awards
Mongolia enforces domestic and foreign arbitral awards under its Arbitration Law and through the New York Convention.
Enforcement is generally reliable but can sometimes face delays due to procedural complexities.
Courts tend to respect arbitration agreements and awards, provided there is no breach of public policy or due process.
4. Judicial Role and Support
Mongolian courts generally take a pro-arbitration stance.
Courts support arbitration by:
Enforcing arbitration agreements.
Assisting in the appointment of arbitrators if necessary.
Granting interim relief measures.
Recognizing and enforcing arbitral awards.
Judicial intervention is limited to specific circumstances prescribed by law.
5. Practical Advice
For contracts involving Mongolian parties:
Clearly specify the seat of arbitration and applicable arbitration rules.
Consider choosing a neutral arbitration venue and internationally recognized rules for cross-border disputes.
Include clear dispute resolution clauses to avoid local court interference.
Given Mongolia’s UNCITRAL-based law and New York Convention membership, arbitration is a viable option for resolving commercial disputes.
Summary
| Aspect | Details |
|---|---|
| Arbitration Law | Law on Arbitration (2010), UNCITRAL-based |
| New York Convention Status | Member since 1996 |
| Local Arbitration Institution | Mongolian National Chamber of Commerce and Industry (MNCCI) |
| Enforcement of Awards | Generally reliable, courts supportive |
| Judicial Role | Limited intervention, pro-arbitration |
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