Introduction

Ethiopia overhauled its arbitration laws with the enactment of the Civil
Code and Civil Procedure Code as of 1960 and 1965 respectively. It also
puts these laws in to practice on commercial disputes for more than half
a century. However, these arbitration laws are sketchy and do not cope
with the emerging modern laws and practices in international
commercial arbitration. As a result, Ethiopia is not gifted with workable,
modernized and institutionalized commercial arbitration. It stands to the
rear of commercial arbitration which is underpinned in diverse legal
systems, used widely by many participants and acknowledged as
relevant dispute resolution, particularly on commercial matters in many
jurisdictions. Commercial arbitration serves justice, satisfies the interest
of business bodies, and more importantly, places significant impact on
the economy of a country.
This article shed lights on arbitration laws of ethiopia comparative withe
international arbitration law.

General principles of arbitration

Following are the general principles of the arbitration:

• Arbitration is Consensual: Arbitration is a mutual process that

requires the consent of both parties. Arbitration can only be
initiated, if parties have agreed to initiate it. Parties can insert any
arbitration clause if it is relevant utilizing a submission agreement
between parties. The parties are also not allowed to unilaterally
withdraw from the arbitration.
• Arbitration is Neutral: Arbitration is a neutral process hence it
provides equal opportunity to the parties such as; Arbitrator,
Arbitration Panel, applicable law, language, and venue of the
arbitration. This also ensures that no parties should enjoy the home-
court advantage.
• Arbitration is a confidential procedure: The arbitration rule
specifically protects the confidentiality of the matter. The arbitration
process provides privacy and restricts unnecessary controversies
regarding the case and parties. Any disclosure made during the
procedure may result in decisions and awards. In some
circumstances, the parties are allowed to restrict the access of trade
 secrets and other confidential information submitted to the
arbitration tribunal.
• The parties choose the arbitrator: Each party has the right to choose
their arbitrator to whom they think will fit to handle their case. If
the parties have chosen a three-member arbitration tribunal, then
each party appoints one of the arbitrators. Then the two selected
arbitration shall agree on the presiding arbitrator. The center can
also suggest the potential arbitrator with relevant expertise or may
directly appoint members of the arbitration tribunal.
• The decision of the arbitral tribunal is final and easy to enforce: The
decision of the arbitral tribunal is final and known as Award. The
decision of the arbitration tribunal must be final and binding on both
parties. Arbitration awards can be easily enforced in other nations
than court proceedings

International arbitration laws

International (Commercial) Arbitration is a method of dispute resolution
whereby the parties agree to have their disputes resolved by one or more
private individuals, i.e., the arbitrators rather than by a court of law.
International (Commercial) Arbitration is frequently used in commercial,
interstate, and foreign investment disputes
n 1958 the Convention on the Recognition and Enforcement of Foreign
Arbitral Awards was adopted in New York. It is also called the New York
Convention. The New York Convention ensures that the states party to
the Convention recognize and enforce international arbitration
agreements and foreign arbitral awards issued in other contracting
states. The United Nations Commission on International Trade Law
(UNCITRAL) adopted in 1985 the UNCITRAL Model Law on International
Commercial Arbitration. This provides a model for states to incorporate
in their domestic law. UNCITRAL also published Arbitration Rules which
parties can be used by parties before or after a dispute arises, to govern
the conduct of arbitration.
What Are International Arbitration Rules?

International commercial arbitrations are normally governed by conventions signed by member states.
The best-known rules of arbitration include those of the International Chamber of
Commerce (“ICC”), the London Court of International Arbitration (“LCIA”), the
International Centre for Dispute Resolution of the American Arbitration Association
(“ICDR”), and the rules of the Singapore International Arbitration Centre (“SIAC”) and
the Hong Kong International Arbitration Centre (“HKIAC”). Investment arbitrations
are often resolved under the rules of the World Bank’s International Centre for
Settlement of Investment Disputes (“ICSID”) or the United Nations Commission on
International Trade Law (“UNCITRAL”) rules. Many arbitrations involving Russian
businesses take place under the rules of the Stockholm Chamber of Commerce
(“SCC”).
How Are International Arbitration Awards Enforced?

Thanks to a treaty known as the New York Convention, which entered into force on
7 June 1959, arbitration awards can be enforced in most countries unlike traditional
court judgments. Over 168 countries have ratified the New York Convention today,
meaning that arbitration awards can be enforced in all major countries in the world.
The primary laws on the basis of which international arbitration lawyers argue a case
are the governing law of a contract, or the law of tort relating to a contract, the
arbitration laws of the seat of arbitration, and the New York and Washington
convention (alternatively known as the ICSID Convention)

UNCITRAL Model Law on International

Commercial Mediation and International
Settlement Agreements Resulting from
Mediation, 2018
Amending the Model Law on International Commercial Conciliation, 2002
The Model Law is designed to assist States in reforming and modernizing their laws on mediation
procedure. It provides uniform rules in respect of the mediation process and aims at encouraging
the use of mediation and ensuring greater predictability and certainty in its use.
The Model Law was initially adopted in 2002. It was known as the "Model Law on International
Commercial Conciliation", and it covered the conciliation procedure. The Model Law has been
amended in 2018 with the addition of a new section on international settlement agreements and
their enforcement. The Model Law has been renamed "Model Law on International Commercial
Mediation and International Settlement Agreements Resulting from Mediation". In its previously
adopted texts and relevant documents, UNCITRAL used the term "conciliation" with the
understanding that the terms "conciliation" and "mediation" were interchangeable. In amending
the Model Law, UNCITRAL decided to use the term "mediation" instead in an effort to adapt to
the actual and practical use of the terms and with the expectation that this change will facilitate the
promotion and heighten the visibility of the Model Law. This change in terminology does not have
any substantive or conceptual implications.
To avoid uncertainty resulting from an absence of statutory provisions, the Model Law addresses
procedural aspects of mediation, including appointment of conciliators, commencement and
termination of mediation, conduct of the mediation, communication between the mediator and
other parties, confidentiality and admissibility of evidence in other proceedings as well as post-
mediation issues, such as the mediator acting as arbitrator and enforceability of settlement
agreements.
The Model Law provides uniform rules on enforcement of settlement agreements and also
addresses the right of a party to invoke a settlement agreement in a procedure. It provides an
exhaustive list of grounds that a party can invoke in a procedure covered by the Model Law.
The Model Law can be used as a basis for enactment of legislation on mediation, included, where
needed, for implementing the United Nations Convention on International Settlement Agreements
Resulting from Mediation.
Accompanying the Model Law, the Guide to Enactment and Use of the UNCITRAL Model Law
on International Commercial Mediation and International Settlement Agreements Resulting from
Mediation was adopted by the Commission in 2002. The Guide to Enactment and Use is a tool
that provides background and explanatory information that States can use in the process of
modernizing legislation in the area of mediation. The Guide to Enactment and Use also provide
other users of the text with useful insight into the Model Law

Arbitration Agreement Under Uncitral Model Law and

New York Convention
22 March 2019

UNCITRAL was incorporated by the United Nations’ General Assembly in 1966 in order to
ensure a single unitary international trade law and after that as a legal body of UN, Model law
was published. UNCITRAL Model Law was formed for countries to support them to develop
their laws on international commercial arbitration and harmonise it with their domestic laws[3].

UNCITRAL Model law;

1. set of rules based on soft law regime,

2. set of recommendations,
3. is not mandatory,
4. is a system based on voluntary compliance.

The New York Convention of 1958 is an international regime for the enforcement of foreign
award and it was adopted by United Nations. It is the most greatly exercised convention with
respect to the international arbitration because it is simpler than the forerunners
such as ‘Geneva Protocol’ and ‘Geneva Convention’[11]. The main
purpose of the New York Convention, which is also known
as ‘Convention on the Recognition and Enforcement of Foreign
Arbitral Awards’, is to both standardise the enforcement of
final award globally and form a distinctive single framework
for the foreign awards. However we should bear in mind that New
York Convention is only applicable for non-domestic or foreign
arbitrations. If we consider the key features of the Convention
for member states:

1. international convention based on international public

law,
2. directly applicable,
3. hard law regime,
4. binding between member states.

Arbitration under Ethiopian laws

Overview of etbiopian arbitration laws

Prior to the enactment of the new arbitration law arbitrations were governed
by civil and civil procedure code pro isions.butThe codes, unlike
compromise and conciliation, laid more provisions for arbitration.

They laid foundation for arbitration to be utilized widely in the country.but

these arbitration laws are sketchy and non-comprehensive Article
3325(1) states that arbitrator “undertakes to settle the dispute in
accordance with the principles of law.” Although this provision does not
explicitly specify, it seems indirectly that an arbitrator should settle
disputes using the basic principles of natural justice. That means an
arbitrator must conduct a fair and an impartial trial and afford full and
equal opportunity to both parties. He/she shall hear testimonies and give
equal chance for parties to produce their evidences, argue and cross-
examine witnesses. But, if fairness and impartiality is required, this
arbitration law should expressly state the fundamental requirements of
arbitration proceedings as it is relevant to avoid any doubt on it. That
does not mean that the phrase ‘natural justice’ should be written in the
document as it is possible to state in a different form like the UNCITRAL
model law, under those provisions ther was limitation on the scope of the
competence-competence doctrine, which allows arbitrators to rule on
their own jurisdiction. While the Civil Code allows arbitrators to rule on
their jurisdiction, Article 3330(3) of the Civil Code barred arbitrators from
deciding the validity of an arbitral submission (arbitration
agreement).3 Thus, before the issuance of the Proclamation, challenges
to the validity of arbitration agreements were decided by the courts. Thus,
before the issuance of the Proclamation, challenges to the validity of
arbitration agreements were decided by the courts. Article 3329 of

the Civil Code also requires provisions of the arbitral submission

concerning the jurisdiction of arbitrators to be interpreted restrictively.
However, this method of interpretation is outdated; rather, it is liberal
approach which is followed in most jurisdictions and adopted
under Article 16(1) of UNCITRAL model law The Proclamation has
addressed the issue by providing that arbitral tribunals "have the power to
determine the existence or non existence of a valid arbitration agreement
between the contracting parties including as to whether it has jurisdiction to
hear the case or not."when we came into then proccedings we will getting
few provisions under civil procedure codes. The

Civil Procedure Code under Article 317 (2) also states arbitral tribunals to
hear parties and their evidence and decide in accordance to law. But, this is
a general principle as the parties can agree that arbitrator should be able to
follow a proceeding different form Civil Procedure Code and able to decide
on another basis.25 This brings in difficulty. First, it is uncertain to determine
whether an arbitrator is bound by the express terms of the parties and, if so
how he/she is to be held to them. Second, it is hard to determine whether
the arbitrator can simply ignore public policy and give effect to contract of
parties, for instance, if the agreements involve criminal nature or against
public moral. Finally, it is also a clear contradiction of the substantive law
and cannot be tenable. The Civil Code requires parties to enter into
arbitration agreement either in the form of an arbitration submission (actede
compromise)27 or arbitration clause (clause compromissoire).28There are
qualms on whether an arbitration clause is separable from the contract in
which it is placed in, whether the validity of the main contract affects the
validity of an arbitration clause or whether the outcome of an arbitration
clause has footing on the main contract. However, several jurisdictions do
have answer for these concerns through doctrine of separability. The
doctrine of separability is adopted in different jurisdictions and legal orders
including in UNCITRAL model law.29 The doctrine of separability avows that
an arbitration clause has independent existence of the main contract in
which it is placed. However, this doctrine is not recognized in
Ethiopia.arbitryal awrds are appelabel civil procedure lawand and awards
are enforceable like ordinary judgements But, the Civil Procedure Code fails
to specify the form and content of the application, the meaning of
homologation, the standards for homologation, and the procedures to be
followed.40 It creates mystification among lawyers, courts, arbitrators and
practitioners.

The Civil Procedure Code is not as clear as, for instance, Quebec Civil
Procedure Code41 and the UNCITRAL model law. The Civil Procedure
Code fails to specify the meaning as well as the methods that should be
employed to distinguish foreign arbitral awards from domesticOn top of all,
Ethiopian arbitration laws do not fit with

UNCITRAL model law which has international legal texts that address
international commercial dispute resolution; non-legislative texts that
include rules for conduct of arbitration proceedings; and notes on
organizing and conducting arbitral proceedings. As a result, Ethiopia is
facing difficulty in international commercial practice. Ethiopia also failed to
ratify the New York Convention on the Recognition and Enforcement of
Foreign Arbitral Awards (1958), and the International Center for the
Settlement of Investment Disputes (ICSID).52 This creates fear for
foreign nationals to come and invest in the country as they may not want
to give their hand for local courts. It brings difficulty into the field. As a
result, the country’s overall transactions, particularly its international
business transactions are affec

Fdre constitution

Basich human righntS are getting by nature being as a human being,and

then they willbe accepted and protected by stipulating under countries
constotution.among them the right to access justice with court of law or any
other competent body having judicial powers is the one which is rcognised
by our constitution . Moreover, Article 34(5) of the FDRE Constitution also
recognizes the

possibility of adjudicating disputes relating to personal matters such as

commercial disputes in

accordance with religious or customary laws, with the consent of the parties.
e, in Ethiopia, customary dispute resolution which is governed by

customary law is a prevailing practic. So, the Ethiopian Constitution has laid
down a

real basis for individuals to establish institutionalized commercial arbitration

which works

according to religious or customary law in the country

arbitration and concilation working procedure proclamation number 1237/2021

inorder to overcome the shortcomings of prior arbitration laws

and also to help the justice by setting alternative dispute
resolution mechanisms Ethiopia rivise its laws of arbitration
during 2021.

The proclamation is partly based on the unictral model law and

contain many provisions embarcing international arbitration
best practice.it also contain some interesting provisions
relating to finality of awards nonarbitrablity resjudicata
confidentiality the establishments of and regulation of
arbitryal institution.

Appeal

Under art 350(2) of the civil procedure code unless parties

wave the right in their agreement appealon arbitra awrd is
permissible.
Art 49 of the proclamation in principle appeal is permissible
unless paties agree differently but in the case of art
41(5),43,44(2)appeal is not perrmited even if the parties agree
differently.

Art 50 The provisions talk about seting aside the arbitrioal

awards similar with unictral laws.it stipulates the grounds of
sety aside the awards under sub art 2.

Commercial arbitration is becoming increasingly important

in the justice system of any

country. Studies conducted in many countries have shown

that, compared to formal court

systems, using commercial arbitration to resolve business

disputes is speedy, cost effective

and widens access to justice.4 Nations are backing their

arbitration system with proper legal

framework, founding str