International Commercial Arbitration at Taiwan
International Commercial Arbitration in Taiwan
1. Legal Framework
Arbitration Law (Arbitration Act)
Taiwan’s arbitration is governed by the Arbitration Act (民事訴訟法仲裁編), which is heavily influenced by the UNCITRAL Model Law on International Commercial Arbitration. Taiwan has modernized its arbitration legislation to align closely with international standards, providing a clear legal basis for arbitration proceedings.
The Arbitration Act covers both domestic and international arbitration, with specific provisions addressing international commercial disputes.
Taiwan is not a signatory to the New York Convention (1958) but has bilateral arrangements and enforces foreign arbitral awards under principles of reciprocity and comity.
2. International Treaties and Enforcement
Since Taiwan is not a UN member, it cannot formally accede to many UN treaties like the New York Convention.
However, Taiwan enforces foreign arbitral awards through bilateral investment treaties (BITs) and free trade agreements (FTAs) with various countries.
Taiwanese courts generally uphold arbitration agreements and recognize arbitral awards, though enforcement can be more complex compared to New York Convention countries.
3. Arbitration Institutions
Chinese Arbitration Association, Taipei (CAA)
The leading arbitration institution in Taiwan, established in 1957, which administers both domestic and international arbitrations. The CAA’s arbitration rules are modeled on international best practices.
Taipei Arbitration Center (TAC)
A newer institution promoting arbitration and alternative dispute resolution.
Taiwan parties also frequently choose international institutions like ICC, SIAC, or HKIAC for cross-border disputes.
4. Judicial Support
Taiwan’s judiciary respects arbitration agreements and provides assistance with arbitration procedures such as appointing arbitrators and granting interim measures.
Courts have a pro-arbitration stance but exercise judicial review to ensure fairness and legality.
Enforcement of arbitral awards is generally supported domestically.
5. Advantages of Arbitration in Taiwan
Modern arbitration legislation consistent with international standards.
Well-established local arbitration institutions with experience in international disputes.
Efficient and impartial judiciary that supports arbitration.
Strategic location and economic importance in Asia make Taiwan attractive for arbitration involving East Asian commercial disputes.
6. Challenges
Taiwan’s lack of formal access to the New York Convention creates some uncertainty around cross-border enforcement.
Enforcement relies on bilateral treaties and domestic laws, which may result in additional procedural steps.
Political status affects Taiwan’s participation in international organizations and treaties, impacting arbitration visibility.
Summary
Taiwan offers a robust and modern legal framework for international commercial arbitration through its Arbitration Act and experienced institutions like the Chinese Arbitration Association, Taipei. While not a party to the New York Convention, Taiwan enforces foreign awards via bilateral treaties and has a pro-arbitration judiciary. Taiwan is an important regional arbitration venue, especially for disputes involving East Asia, with growing institutional capacity and international engagement despite political limitations.
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