International Commercial Arbitration at Turkey
Here’s a comprehensive overview of International Commercial Arbitration in Turkey:
1. Legal Framework
Turkey has a well-established and modern arbitration regime, particularly for international disputes.
🔹 Primary Laws:
International Arbitration Law No. 4686 (2001)
Applies to international disputes where at least one party is foreign, or the dispute involves elements outside of Turkey.
Based largely on the UNCITRAL Model Law and applies when:
Parties choose it in the arbitration clause.
The seat of arbitration is in Turkey.
A Turkish court is asked to take supportive actions.
Turkish Code of Civil Procedure (CCP) — Law No. 6100 (2011)
Governs domestic arbitration and international arbitration if not otherwise agreed by parties.
2. Recognition and Enforcement
Turkey is a party to the New York Convention (1958) since 1992.
This ensures that foreign arbitral awards are generally enforceable in Turkey, subject to limited defenses (public policy, procedural fairness, etc.).
Turkish courts follow an arbitration-friendly approach, with limited grounds for refusal of enforcement.
3. Arbitration Institutions
🔹 Local Institutions:
Istanbul Arbitration Centre (ISTAC)
Offers efficient and internationally aligned rules for domestic and international disputes.
ISTAC rules are influenced by UNCITRAL and ICC standards.
Fast-track and emergency arbitrator provisions are available.
🔹 International Institutions Commonly Used:
ICC (International Chamber of Commerce)
LCIA (London Court of International Arbitration)
SIAC (Singapore International Arbitration Centre)
ICSID (for investor-state disputes, as Turkey is a member of ICSID)
4. Judicial Support and Attitude
Turkish courts are generally pro-arbitration.
Courts support arbitration by:
Enforcing arbitration agreements.
Refusing to hear cases where a valid arbitration clause exists.
Supporting interim measures and enforcement of awards.
Challenges to awards are permitted on narrow grounds similar to the Model Law and the New York Convention.
5. Practical Considerations
Arbitration agreements should:
Clearly define the seat of arbitration.
Specify applicable rules (e.g., ISTAC, ICC).
Indicate the number and method of selection of arbitrators.
State the language and governing law.
Istanbul is often chosen as the seat for arbitrations involving Turkish parties due to its modern infrastructure and growing reputation.
6. Summary
| Aspect | Details |
|---|---|
| Arbitration Law | Law No. 4686 (international), CCP No. 6100 (domestic) |
| Based on UNCITRAL Model Law | Yes (for international arbitration) |
| New York Convention | Yes (since 1992) |
| Arbitration Institutions | ISTAC, ICC, LCIA, etc. |
| Enforcement of Awards | Supported under NY Convention |
| Judicial Attitude | Supportive and arbitration-friendly |
7. Recommendations
For international contracts involving Turkish parties, specify arbitration under ISTAC or ICC rules with Istanbul or a neutral city as the seat.
Make sure to include a well-drafted arbitration clause to avoid jurisdictional disputes.
Use local legal counsel when enforcing awards or navigating court support procedures.
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