Peculiarities of competence and arbitration proceeding in the grain trade

Abstract

Introduction. The article is devoted to the study of the functioning and peculiarities of proceedings in international commercial arbitration, specializing in trade in grain and oil crops. The article examines the features of arbitration proceedings that are characteristic of GAFTA arbitration.

Summary of the main research results. The article is devoted to the study of the functioning and peculiarities of proceedings in international commercial arbitration, specializing in trade in grain and oil crops. The article examines the features of arbitration proceedings that are characteristic of GAFTA arbitration. The key differences of grain arbitration are established, namely: the specific qualification of GAFTA arbitrators in the field of trade in grain and oil crops, which distinguishes this arbitration institution from other permanent arbitration institutions; unique for arbitration proceedings is the presence of an appeal proceeding, which is also organized by the arbitration institution and gives the parties the opportunity to appeal the arbitration decision of the first instance; arbitrators reviewing first-instance decisions are not bound by the decision of the first-instance tribunal and have the opportunity to review the case with the addition of a new evidence base; availability of standard and simplified arbitration procedures, which effectively affects the time and financial resources of the parties to arbitration proceedings; the presence of a simplified procedure, which makes it impossible to appeal the arbitration decision, leaves only one arbitrator and significantly speeds up the arbitration of the case, standard for arbitration procedures, a high level of confidentiality of the proceedings, which can be especially important, taking into account the specifics of the grain trade market; features related to payment of arbitrators' work and payment of arbitration fees, depending on the parties' membership in GAFTA; the use of English law in arbitration, which in most cases is more applicable precisely for similar commercial disputes; arbitration proceedings in GAFTA in most cases take place without an oral hearing, only on the basis of written documents, which significantly speeds up the proceedings; parties can significantly reduce arbitration costs in GAFTA arbitration if they are members of the association, as in this case mandatory payments are significantly reduced; GAFTA arbitration effectively changed its working format during the coronavirus pandemic and moved to electronic document flow and electronic awards using electronic digital signatures and seals.

Conclusions. The article establishes that specialized international commercial arbitrations on grain trade are an effective way of resolving commercial disputes complicated by a foreign element, taking into account the qualifications of arbitrators and the special arbitration procedure.