Abstract

The enforcement of arbitral awards against sovereign states presents a multifaceted challenge that hinges on the delicate balance between the sanctity of award enforcement and the doctrine of sovereign immunity. Given the interconnected nature of the global economy, states engage in numerous bilateral and multilateral agreements, as well as contracts with private entities, making international arbitration a preferred mechanism for resolving cross-border disputes. An arbitral award, representing the tribunal’s decision, marks the culmination of the arbitration process. However, when one party is a sovereign state, enforcement becomes challenging due to the shield of sovereign immunity that states often invoke to avoid compliance. The true test of arbitration lies in the enforceability of this award, as the essence of arbitration is undermined if sovereign states circumvent award enforcement through claims of sovereign immunity. This research examines the legal frameworks and judicial interpretations governing the enforcement of arbitral awards, focusing on the New York Convention (NYC) and the UNCITRAL Model Law. It highlights the inconsistency and lack of clarity in state immunity laws and their application by national courts, which complicates the enforcement procedure. Key questions addressed include: To what extent can sovereign immunity be invoked to resist the enforcement of arbitral awards? How do courts balance the respect for state sovereignty with the imperative to uphold international arbitration agreements? The paper also explores the practical implications for international arbitration practitioners and the states involved, providing a critical analysis of legal precedents and theoretical perspectives. By examining these issues, this paper aims to offer a nuanced understanding of the enforcement mechanisms available against states and the evolving jurisprudence in this area. The findings underscore the necessity for a coherent and predictable approach that reconciles the enforcement of arbitral awards with the doctrine of sovereign immunity, thereby contributing to the stability and effectiveness of international arbitration.

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