Thursday, June 13, 2024

Lawyers want time before arbitration rules change


Lawyers are concerned about the quick implementation of the arbitration law despite its big role in motivating foreign investment by increasing the confidence of investors, importers & exporters because it encourages them to deliver quality products.
Daneil Kebkab commercial lawyer applauds the ratification.
“It really benefits the country as it attracts more investment by increasing investors’ confidence However, lack of skilled manpower, experience and resources delayed implementing the law.
Ethiopia’s engagement has improved quality of products and increased competitiveness.
According to the expert, currently many senior lawyers are appointed as arbitrators with no formal training in the field which hurts Ethiopian businesspeople.
The current trend in case of arbitration institution is linked to Addis Ababa Chamber of Commerce that strives to provide a forum for those who prefer institutional arbitration although there have been a few instances where an arbitration clause is stipulated in a contract but has not been fully relied on by the parties to the dispute.
For Daniel, a dispute resolution mechanism should take into account not only local needs but the needs and aspirations of foreign investors as well as regional integration and standards.
The success of arbitration is a function of several components such as an enabling legal framework, qualified and dependable human resources and the institutional support needed to make it functional.
“Regrettably, Ethiopia does not currently have any of those components for the effective utilization of arbitration or other forms of alternative dispute resolution. Disputes are inevitable and the State has an obligation to provide an efficient and credible forum for dispute resolution while lawyers have professional obligations in helping their clients to choose the most appropriate means of resolving differences,” said Tewodros Mihretu, another lawyer in the field states favorably tend to recognize arbitral awards rendered in other countries with the objective of avoiding continued harassment against the defendant, waste of time, money and effort and with the view to promoting international investment and trade.
“The ratification of arbitrary law in this regards, may sideline those business people who engaged in mixing up low quality products out of the market and encourage better business,” Daniel adds.
The bill already has been tabled to the parliament for ratification after by the Council of Ministers approved it last week.

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