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Amendments to International Arbitration Act 1974 (Cth)

Recent amendments to the Federal Court of Australia Act 1976 (Cth) and the International Arbitration Act 1974 (Cth) ('Act') on 7 December 2009 have given the Federal Court jurisdiction to enforce foreign awards.

Additionally, the International Arbitration Amendment Bill 2009 received its second reading on 25 November 2009 and will be debated this year.

The Act provides for the recognition and enforcement of foreign arbitral awards and the conduct of international commercial arbitrations in Australia. The amendments give the Federal Court jurisdiction in relation to:

1. applications to stay proceedings or part of proceedings where the parties have agreed to arbitrate disputes
2. the enforcement of a foreign award under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (‘The New York Convention’)
3. the enforcement of an award under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (‘The ICSID Convention’)
4. applications under the UNCITRAL Model Law on International Commercial Arbitration 1985 ('Model Law') for orders concerning: appointment and termination of an arbitrator; challenges against an arbitrator for lack of impartiality or independence or necessary qualifications; whether the arbitrator has jurisdiction; and, setting aside an arbitral award

State and Territory courts are expected to amend their respective Commercial Arbitrations Acts and adopt the Model Law. Such uniformity is aimed at ensuring that Australia's legislation accords with international best practice, as well as promoting consistency in interpretation of the legislation.

The Federal Court's Practice Note ARB1 sets out the arrangements when orders are sought under the Act.

An Explanatory Memorandum on the amending legislation has been published by the Commonwealth.