International arbitration in Bangladesh is the preferred mechanism for resolving cross-border commercial disputes involving Bangladeshi parties. Governed by the Arbitration Act 2001 and supported by Bangladesh’s accession to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, international arbitration in Bangladesh provides foreign investors and businesses with a reliable, internationally recognised framework for resolving disputes with Bangladeshi counterparties.
Legal Framework for International Arbitration in Bangladesh
International arbitration in Bangladesh is governed by the Arbitration Act 2001, which applies to all arbitrations conducted in Bangladesh, whether domestic or international. The Act is modelled on the UNCITRAL Model Law and provides a comprehensive framework for international arbitration proceedings. Bangladesh’s accession to the New York Convention in 1992 ensures that awards made in Bangladesh are enforceable in over 170 countries, and that foreign awards from New York Convention countries are enforceable in Bangladesh under Section 45A of the Act.
Choosing the Seat of International Arbitration for Bangladesh Disputes
The seat of arbitration is one of the most important decisions in international arbitration. It determines the procedural law governing the arbitration and the court that has supervisory jurisdiction. For disputes involving Bangladeshi parties, the common choices are: Dhaka, Bangladesh (under BIAC rules); Singapore (under SIAC rules); London (under LCIA or ICC rules); and Dubai (under DIAC or DIFC-LCIA rules). Each seat has its own advantages and disadvantages, and the choice should be made carefully based on the nature of the dispute, the parties’ preferences, and the enforceability of the award.
International Arbitration Institutions for Bangladesh Disputes
BIAC (Bangladesh International Arbitration Centre)
BIAC is the preferred institution for international arbitrations seated in Bangladesh. It is a member of APRAG and has established relationships with ICC, SIAC, and other international institutions.
ICC (International Chamber of Commerce)
ICC arbitration is widely used in international contracts involving Bangladeshi parties, particularly in the energy, infrastructure, and financial sectors.
SIAC (Singapore International Arbitration Centre)
SIAC is a popular choice for disputes involving Bangladeshi and other Asian parties, given Singapore’s reputation as a neutral, efficient arbitration seat.
TRW Law Firm: International Arbitration Services in Bangladesh
TRW Law Firm has extensive experience in international arbitration involving Bangladeshi parties, representing clients in BIAC, ICC, SIAC, and LCIA arbitrations. Contact TRW at tahmidurrahman.com or visit lawfirm.com.bd.
Frequently Asked Questions
Is Bangladesh a party to the New York Convention?
Yes. Bangladesh acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards in 1992. This means that arbitral awards made in Bangladesh are enforceable in over 170 countries, and foreign awards from New York Convention countries are enforceable in Bangladesh.
Can foreign parties arbitrate in Bangladesh?
Yes. Foreign parties can agree to arbitrate in Bangladesh under BIAC rules. BIAC has experience in administering international arbitrations involving foreign parties.
What language can international arbitration in Bangladesh be conducted in?
The parties may agree on the language of the arbitration. For international arbitrations, English is the most common choice. BIAC can administer arbitrations in both English and Bengali.
Related articles: Alternative Dispute Resolution in Bangladesh | Arbitration Lawyer in Bangladesh | Commercial Arbitration in Bangladesh
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Contact TRW Law Firm
If you need expert legal advice on this matter, contact TRW Law Firm — one of Bangladesh’s leading law firms specialising in ADR, arbitration, and commercial litigation. Visit tahmidurrahman.com or lawfirm.com.bd to speak with a specialist today.
