International Commercial Arbitration at Romania
International Commercial Arbitration in Romania is governed by a combination of national legislation and international treaties. Here's an overview of how it works and what you should know:
1. Legal Framework
Domestic Law
Romania’s arbitration is primarily regulated under Book IV of the Romanian Civil Procedure Code.
This code provides for both domestic and international arbitration.
It supports the principle of party autonomy, allowing parties to choose procedural rules, arbitrators, and the seat of arbitration.
International Treaties
New York Convention (1958): Romania is a signatory, which means it recognizes and enforces foreign arbitral awards.
ICSID Convention (1965): Romania is a member, enabling investment arbitration under the ICSID system.
2. Arbitration Institutions in Romania
Court of International Commercial Arbitration (CICA): Operates under the Chamber of Commerce and Industry of Romania (CCIR).
One of the most prominent arbitration bodies in Romania.
Offers services for both domestic and international disputes.
Parties can also choose international institutions like ICC, LCIA, or VIAC for arbitration seated in Romania.
3. Key Features of Arbitration in Romania
Neutral forum: Often chosen to avoid national courts of one party.
Confidentiality: Arbitration proceedings are typically private.
Enforceability: Awards rendered in Romania are enforceable under the New York Convention.
Speed and Cost: Arbitration may be quicker than court litigation, but it can also be expensive depending on the arbitrators and institution.
4. Arbitral Procedure
Parties can agree on procedural rules; if not, Romanian law applies.
Arbitrators are independent and impartial.
Parties may be represented by lawyers (including foreign lawyers).
5. Recognition and Enforcement
Foreign awards are enforceable in Romania under the New York Convention.
Romanian courts have a relatively arbitration-friendly attitude in recognizing and enforcing foreign arbitral awards.
6. Language and Seat
Parties can choose the language of arbitration (not limited to Romanian).
The seat of arbitration (even within Romania) determines procedural law and court support.
Use Cases
International arbitration in Romania is used for:
Cross-border commercial contracts (e.g., construction, distribution, joint ventures)
Foreign investments
Disputes between Romanian and international companies
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