Canadian Lawyer

LEGAL REPORT/ADR The problem is enforcement I n an attempt to further establish its reputation as a leading inter- national arbitration body, sion revised its rules on May 1, 2012 to be more in line with respected organi- zations like the International Chamber of Commerce. With Canadian imports and exports to China rising every year ($44.5 billion and $13.2 billion respec- tively in 2010), will these new rules do anything to solve the problem foreign companies have in enforcing their arbi- tration awards in China? The short answer is not really. CIETAC, headquartered in Beijing, China International Economic and Trade Arbitration Commis- the accepts more than 1,400 arbitration cases per year. As the best known arbi- tration body in China, Chinese compa- nies often designate CIETAC as their dispute-resolution institution in their international contracts. Canadian com- panies contracting with these business- es are then also subject to CIETAC's rules. CIETAC has been around in vari- ous forms since the 1950s, so updating its rules is not uncommon. However, with trade rising steadily between Can- ada and China, the rules of arbitration take on additional significance in 2012: The more business Canadians conduct with China, the more disputes will arise. The two most notable changes to the CIETAC rules are that it now has Changes to China's arbitration commission aim to make problem solving for commercial matters easier, but they won't fix many of the underlying issues that handcuff dispute resolution in the Asian nation. BY AVA CHISLING the ability to consolidate two or more pending arbitrations into a single arbi- tration, and for the first time, it can order an interim measure. "I think the changes to CIETAC's rules are useful 46 SEPTEMBE R 2012 www.CANAD I AN Lawyermag.com and the most helpful one is the power to grant interim relief, which is benefi- cial if you're a foreign company, Joe McArthur, a partner at Blake Cas- sels & Graydon LLP's Vancouver office " says oleg porTnoY

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