Arbitration in Japan

Abstract

This paper outlines the law and practice of international commercial arbitration in Japan, including comparative observations – especially with other jurisdictions that have adopted the UNCITRAL Model Law, such as Australia.

The Introduction sets out general patterns, noting some recent increases in international arbitration caseloads in Japan, but also possible reasons behind comparatively low levels of arbitration activity. It also outlines the historical development of Japan’s arbitration legislation, culminating in enactment of the Arbitration Law 2003. Part II looks more closely at that present legal framework, discussing recent Japanese case law of practical and/or comparative interest. Part IV separates out issues related to enforcement of arbitration awards, under the Arbitration Law or the 1958 New York Convention. Part III takes a closer look at arbitration practice in Japan, especially the roles of various arbitration institutions.

Part V concludes that 'it is difficult to see much scope for dramatic increases in international or domestic arbitration caseloads in Japan. However, broader structural shifts should generate gradual but steady increases, especially in cross-border dealings. In specific negotiations, moreover, some Japanese firms may press hard for arbitration with the seat in Japan – and foreign counterparts should realize that arbitration in Japan amply meets global standards.'

Keywords: dispute resolution, arbitration, Japanese law, Asian law, comparative law

JEL Classification: K10, K30, K33