Konvencija o priznanju i izvršenju stranih arbitražnih, commonly called the Njujorške konvencije, stupio na snagu 7 jun 1959 i to je temelj moderne međunarodne arbitraže.
Ova važna međunarodna konvencija zahtijeva sudovima 159 država ugovornica (sa Sudan postao najnoviji član u 2018) to give effect to arbitration agreements and to recognise and enforce arbitration awards in all other contracting States.
One of the primary reasons why međunarodnu arbitražu is advantageous to resolve international disputes as compared to domestic litigation is the fact that international arbitration awards may be readily enforced in all major States in the world. No similar convention currently exists for international litigation, making the international enforcement of domestic court judgements more difficult and far less predictable.
While over 2/3 of States in the world have ratified the New York Convention, allowing arbitration to become the leading manner of settling international disputes, some have not, and extra care must therefore be taken when engaged in international transactions with business from these States.
While it is unsurprising to see that certain States, like North Korea and Somalia, have failed to ratified the New York Convention, it is somewhat surprising to learn that major countries like Iraq have not (although ratification is reportedly in the works):
This does not mean that arbitration is impossible in these countries, nor that awards cannot be enforced through local courts, but it is a warning sign that the enforcement of a foreign award may be difficult or impossible in that State.
The latest States to ratify the New York Convention include Myanmar, Andorra and Sudan, which became the 159th contacting State to the New York Convention, which entered into force in Sudan on 24 jun 2018.