Recent political developments have resulted in considerable geopolitical uncertainty and presented challenges to the international order. With the UK’s vote to exit the EU, the election of Donald Trump as US president, Western sanctions against Russia, and rising North Korean nuclear tensions, 2017 has ushered in a turbulent time where commercial parties’ usual approach to dispute resolution is under challenge. This article examines the likely impact of recent political changes on international arbitration.
Brexit is imminent. With the approval of the UK Parliament, prime minister Theresa May has triggered the article 50 exit clause of the Treaty of Lisbon, which gives the UK and the EU until the end of March 2019 to reach a withdrawal agreement. While exit negotiations are ongoing, there are doubts over London’s future as an international arbitration centre.
The concerns arise primarily from the socio-economic consequences of Brexit, which might include the possible departure of financial institutions, increased immigration barriers for foreign talent, and the city’s potential loss of its preeminence as a global financial centre.
(The opinions expressed are those of the author and do not necessarily reflect the views of the HKIAC.)
Joe Liu is the managing counsel of Hong Kong International Arbitration Centre
