On June 26, 2024, the Embassy of Switzerland hosted a panel discussion on the role of Switzerland as a hub for international arbitration. Christoph Sommer, Deputy Chief of Mission of the Swiss Embassy, welcomed an eminent group of experts to discuss the unique opportunities our country offers for the resolution of international disputes. He presented Switzerland’s three key strengths for its role as a hub for international arbitration: institutional stability, the international orientation of the country, and the experience in international arbitration Switzerland has built over the years.
Marco Vedovatti (Partner at Bratschi Ltd., Switzerland and Co-Head of the Arbitration Practice Group) delivered a keynote speech in which he highlighted Switzerland’s liberal international arbitration law (Chapter 12 of the Swiss Private International Law Act), with its unrivalled focus on party autonomy. This legal framework allows users to file challenges against Swiss international arbitral awards in English (although it is not a national language) directly to the Swiss Federal Supreme Court, which is known for its arbitration-friendly and time-efficient jurisprudence.
In the panel discussion moderated by Sami Salihu (Associate at Bratschi Ltd., Switzerland), the panelists Rachael D. Kent (Partner at Wilmer Cutler Pickering Hale and Dorr LLP, Washington D.C.), Marco Vedovatti, and Jonathan C. Hamilton (Partner at Paul Hastings, LLP, Washington D.C.) discussed international dispute resolution in the pharmaceutical industry, commodity trading, and sports.
• Pharmaceuticals: The pharmaceuticals industry is Switzerland’s leading exporter, generating roughly 50% of total annual exports. Hosting more than 1,000 companies and two major multinationals, Switzerland also benefits from strong trade relations with the United States. In 2023, the United States and Switzerland signed the Pharmaceutical Good Manufacturing Practice Agreement to streamline the movement of pharmaceutical goods (read more here). The resolution of international disputes involving the pharmaceutical industry requires specialized technical expertise, which is readily available through international arbitration.
• Sports: Switzerland is home to more than 40 international sport associations such as the Union of European Football Associations (UEFA), the International Basketball Federation (FIBA), the World Baseball Softball Confederation (WBSC) as well as the International Olympic Committee (IOC). Moreover, since 1984, Switzerland has hosted the Court of Arbitration for Sport, a dispute resolution body for sports-related arbitration proceedings, including those arising from the Olympic Games, such as the 2024 Summer Olympics in Paris. Compared to commercial arbitration, sports arbitration faces more constraints. For instance, the parties’ right to choose arbitrators is limited, and they cannot select the seat, which is always Lausanne. However, compared to commercial arbitration procedures, sport arbitration procedures are faster and cheaper.
• Commodities: Switzerland is one of the world’s largest trading hubs for many commodities such as oil, metals, sugar, cotton, coffee, and cereals. The country’s geographic location between the MENA, Americas, and Asia regions, enhances its key role in this market. The war in Ukraine and the sanctions related to it have led to the disruption of supply chains caused by the termination of trade relationships, which then led to international legal disputes. This economic sector therefore needs effective international arbitration more than ever.
The discussion concluded with a Q&A and remarks by Georgetown Professor Anne Marie Whitesell, who served as Secretary General of the ICC International Court of Arbitration from 2001 to 2007.
Just in time for this event, the ICC International Court of Arbitration published its statistics for the year 2023 on June 24. These statistics reveal that:
• Switzerland is among the top three countries selected as place for arbitration;
• Swiss law is the second most frequently selected law by contract parties; and
• Switzerland was the third most frequent nationality of arbitrators.
This confirms the trust that parties from all over the world place in Switzerland, Swiss law, and Swiss arbitrators.
