International Commercial Arbitration at Trinidad and Tobago
International Commercial Arbitration in Trinidad and Tobago
1. Legal Framework
Arbitration Act:
International arbitration in Trinidad and Tobago is governed by the Arbitration Act, Chapter 5:01, which is a relatively old piece of legislation and not based on the UNCITRAL Model Law.
However, reform efforts have been underway to modernize the legal framework and align it more closely with international best practices. As of now, the country is not yet fully UNCITRAL-compliant, but is New York Convention-compliant.
New York Convention:
Trinidad and Tobago is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (acceded in 1966), which allows for enforcement of foreign arbitral awards within its jurisdiction.
2. Arbitral Institutions
There is no major international arbitration center currently based in Trinidad and Tobago.
However, the Dispute Resolution Centre (DRC) in Port of Spain offers arbitration and mediation services, primarily for domestic matters.
For international disputes, parties often choose well-established institutions such as:
ICC (International Chamber of Commerce)
LCIA (London Court of International Arbitration)
UNCITRAL Arbitration Rules (for ad hoc arbitration)
3. Judicial Attitude Toward Arbitration
Courts in Trinidad and Tobago generally uphold arbitration agreements and enforce arbitral awards, especially under the framework of the New York Convention.
However, due to the outdated Arbitration Act, there are occasional procedural challenges, especially for complex international commercial arbitrations.
4. Enforcement of Arbitral Awards
Foreign Arbitral Awards:
Enforced under the New York Convention, with the usual grounds for refusal (e.g., public policy, incapacity, improper notice) as outlined in Article V.
Domestic Awards:
Enforced under the local Arbitration Act, requiring court confirmation for judgment execution.
5. Key Practical Considerations
| Factor | Details |
|---|---|
| Legal System | Common law, based on English legal traditions |
| Arbitration Law | Arbitration Act (non-UNCITRAL based) |
| International Treaty | New York Convention (1958) party |
| Arbitral Institutions | Dispute Resolution Centre (domestic focus) |
| Enforcement of Awards | Recognized under New York Convention |
| Preferred Arbitration Venues | Often offshore (e.g., London, New York) for international disputes |
| Language of Proceedings | English |
6. Sample Arbitration Clause (Trinidad and Tobago as Seat)
"Any dispute arising out of or in connection with this contract shall be referred to and finally resolved by arbitration in accordance with the UNCITRAL Arbitration Rules. The seat of arbitration shall be Port of Spain, Trinidad and Tobago. The language of arbitration shall be English. The number of arbitrators shall be one. The governing law of the contract shall be the laws of Trinidad and Tobago."
Conclusion
While Trinidad and Tobago is arbitration-friendly and enforces foreign awards, the domestic legal framework is due for modernization. For international commercial contracts, consider using recognized arbitration rules and institutions, and carefully draft arbitration clauses to avoid procedural issues.
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