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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Kartini L. Makmur
Associate Professor at National University of Singapore, Prakash Pillai. Photo by: RES
The establishment of the ASEAN Economic Community (AEC) in 2015 has brought about a regional free market for workers, goods, and services within Southeast Asia. In reality though, there is unlikely to be any immediate growth spurt within the region in terms of trade. On the contrary, any increases promise to be mediocre in scale when compared with the current size of the ASEAN economy.
This prediction was ventured by Mrs. Sapna Jhangiani, Legal Director for the Singaporean law firm Clyde & Co, during an interview conducted with hukumonline at the recent International Arbitration Conference. The event itself was held in Jakarta on Tuesday, 8 March 2016.According to Mrs. Jhangiani, it is typical for any trade sector to grow gradually and at a moderately slow pace. Mrs. Jhangiani asserted that the inauguration of the AEC would indeed allow for large volumes of international trade within the region, however she also sought to emphasize that such trade was unlikely to show any large increases within such a short time.
“Trade sectors never suddenly skyrocket in this way. Instead, increases in trade are generally slow but steady,” asserted Mrs. Jhangiani.
Pursuing this line of argument further, Mrs. Jhangiani explained that international trade during the AEC era would also have a knock-on effect within the legal sector, specifically as regards the alternative-dispute-resolution (ADR) mechanism. Mrs. Jhangiani has observed that many businesses are showing a preference for settling their disputes through ADR mechanisms, either in the form of mediation or arbitration.
Commenting on this issue, Prakash Pillai, an Associate Professor from the National University of Singapore, asserted that arbitration and mediation were suitable choices for the settlement of international trade disputes during the AEC era.
“Generally speaking, the trade sector is the cause of the majority of disputes which are ultimately settled through arbitration. The AEC will undoubtedly affect the growth of trade within Southeast Asia, and this growth should eventually contribute to an increase in the number of disputes which are brought before arbitration panels,” asserted Mr. Pillai.
Mrs. Jhangiani also believes that this trend will in fact grow even stronger with the establishment of the AEC. Indeed, the region already possesses its own well-known international mediation and arbitration center, namely the Singapore International Arbitration Center (SIAC).
“I believe that Singapore will prove to be an excellent option for the settlement of inter-state trade disputes. Moreover, Singapore’s international mediation and arbitration center certainly appears to be ready to deal with an increasing volume of such disputes, which is the likely result of the inauguration of the AEC,” asserted Mrs. Jhangiani.
Mr. Pillai shared Mrs. Jhangiani’s optimism, adding that the SIAC is known as one of the top three arbitration centers in the world and is chosen by parties from many different countries who are looking to settle their disputes.
“The majority of global-trade disputes are usually settled in London, Paris, Singapore, Hong Kong, and Geneva. The presence of the SIAC as a reliable arbitration center located in Southeast Asia then should prove to be of significant value to the AEC,” asserted Mr. Pillai.
Following this line of argument further, Mr. Pillai explained why Singapore has become one of the most favored locations for the settlement of trade disputes. Firstly, Singapore has an excellent reputation throughout the global business sector. Moreover, Mr. Pillai firmly believes that Singapore’s legal system has proved to be highly supportive of international-arbitration efforts, and stressed that the island nation is also equipped with some excellent facilities.
Mr. Pillai also sought to stress Singapore’s strategic location at the center of the Southeast Asian region. Singapore, moreover, has built a reputation for neutrality during dispute settlements and this fact, according to Mr. Pillai, means that disputing parties trust in the arbitration process and believe that their cases will be settled in a clean and effective way.
However, Mr. Pillai also pointed to the fact that most disputes coming before the SIAC to date have not been brought by Southeast Asian nations. According to Mr. Pillai’s data, the top five sources of disputing parties bringing cases before the SIAC have been India, China, South Korea, the United States, and Australia. Meanwhile, Vietnam, Indonesia, and Malaysia remain down lower down the list.
(rfs/sp)
Marcell Sihombing, Kartini L. Makmur
Associate Professor at National University of Singapore, Prakash Pillai. Photo by: RES
The establishment of the ASEAN Economic Community (AEC) in 2015 has brought about a regional free market for workers, goods, and services within Southeast Asia. In reality though, there is unlikely to be any immediate growth spurt within the region in terms of trade. On the contrary, any increases promise to be mediocre in scale when compared with the current size of the ASEAN economy.
This prediction was ventured by Mrs. Sapna Jhangiani, Legal Director for the Singaporean law firm Clyde & Co, during an interview conducted with hukumonline at the recent International Arbitration Conference. The event itself was held in Jakarta on Tuesday, 8 March 2016.According to Mrs. Jhangiani, it is typical for any trade sector to grow gradually and at a moderately slow pace. Mrs. Jhangiani asserted that the inauguration of the AEC would indeed allow for large volumes of international trade within the region, however she also sought to emphasize that such trade was unlikely to show any large increases within such a short time.
“Trade sectors never suddenly skyrocket in this way. Instead, increases in trade are generally slow but steady,” asserted Mrs. Jhangiani.
Pursuing this line of argument further, Mrs. Jhangiani explained that international trade during the AEC era would also have a knock-on effect within the legal sector, specifically as regards the alternative-dispute-resolution (ADR) mechanism. Mrs. Jhangiani has observed that many businesses are showing a preference for settling their disputes through ADR mechanisms, either in the form of mediation or arbitration.
Commenting on this issue, Prakash Pillai, an Associate Professor from the National University of Singapore, asserted that arbitration and mediation were suitable choices for the settlement of international trade disputes during the AEC era.
“Generally speaking, the trade sector is the cause of the majority of disputes which are ultimately settled through arbitration. The AEC will undoubtedly affect the growth of trade within Southeast Asia, and this growth should eventually contribute to an increase in the number of disputes which are brought before arbitration panels,” asserted Mr. Pillai.
Mrs. Jhangiani also believes that this trend will in fact grow even stronger with the establishment of the AEC. Indeed, the region already possesses its own well-known international mediation and arbitration center, namely the Singapore International Arbitration Center (SIAC).
“I believe that Singapore will prove to be an excellent option for the settlement of inter-state trade disputes. Moreover, Singapore’s international mediation and arbitration center certainly appears to be ready to deal with an increasing volume of such disputes, which is the likely result of the inauguration of the AEC,” asserted Mrs. Jhangiani.
Mr. Pillai shared Mrs. Jhangiani’s optimism, adding that the SIAC is known as one of the top three arbitration centers in the world and is chosen by parties from many different countries who are looking to settle their disputes.
“The majority of global-trade disputes are usually settled in London, Paris, Singapore, Hong Kong, and Geneva. The presence of the SIAC as a reliable arbitration center located in Southeast Asia then should prove to be of significant value to the AEC,” asserted Mr. Pillai.
Following this line of argument further, Mr. Pillai explained why Singapore has become one of the most favored locations for the settlement of trade disputes. Firstly, Singapore has an excellent reputation throughout the global business sector. Moreover, Mr. Pillai firmly believes that Singapore’s legal system has proved to be highly supportive of international-arbitration efforts, and stressed that the island nation is also equipped with some excellent facilities.
Mr. Pillai also sought to stress Singapore’s strategic location at the center of the Southeast Asian region. Singapore, moreover, has built a reputation for neutrality during dispute settlements and this fact, according to Mr. Pillai, means that disputing parties trust in the arbitration process and believe that their cases will be settled in a clean and effective way.
However, Mr. Pillai also pointed to the fact that most disputes coming before the SIAC to date have not been brought by Southeast Asian nations. According to Mr. Pillai’s data, the top five sources of disputing parties bringing cases before the SIAC have been India, China, South Korea, the United States, and Australia. Meanwhile, Vietnam, Indonesia, and Malaysia remain down lower down the list.
(rfs/sp)