What to Expect from International Arbitration in the UK, EU and Globally in 2019

Global litigation finance and international arbitration are inextricably linked – with the former being legalized for use in the latter in both Singapore and Hong Kong (many believe as a test case for eventual broader expansion). With that in mind, it’s worth considering what lies ahead for the international arbitration sector. Read on to find out–

According to Lexology, there are some major issues to pay attention to with regard to international arbitration in 2019. First and foremost on the list is Brexit. While there’s no telling when it comes to politics, Brexit is indeed expected to take place this year. London-based Clyde and Co. sees Brexit having a negligible, or potentially even positive effect on the state of international arbitration in London long-term. That said, in the short term, parties may turn to New York to eschew any bureaucratic nightmares that may arise from the Brexit wind-up.

Anti-globalization is another trend worth watching out for. Nationalistic political shifts may prompt increased arbitration between investors and states. And with traditional investor-state dispute mechanisms like the ICSID losing a bit of steam internationally (thanks in part to the EUs proposed Multilateral Investment Court), there is much to watch out for on this front. Litigation funders have also ramped up their participation in investor-state disputes, as LFJ recently reported.

No mention of global arbitration trends in 2019 would be complete without some discussion of Belt and Road (BRI). BRI is arguably the largest single investment ever made (Noah’s Arc? The Pyramids?) Given the sheer size and scale of the BRI project, it stands to reason that dispute resolution centers in the region are going to be kept busy for some time. Throw into the mix the fact that Chinese culture encourages mediation and settlement as opposed to litigation, and arbitrators (and funders) have a lot to get excited about.

And finally, it’s worth putting London Disputes Week on your 2019 calendar. The event will be held from May 7-10, and will showcase prominent lawyers, judges, arbitrators, academics in the field of dispute resolution. You can bet all of the above will be discussed, as well as any international arbitration topics that happen to be trending during the event.