HKIAC in the Americas: Navigating Dispute Resolution in Asia Chiann Bao, Secretary General, HKIAC

Asia – Latin America Trade

China’s Global Reach Chinese Outbound investment rose 14% to US$77.2 billion in China now holds the no 3 spot in global outbound investment rankings, behind the US and Japan, up from 16 place in 2011

China’s Global Reach – United States According to the Bureau of Economic Analysis, annual outbound direct investment from China to the U.S. has grown by more than 300% since 2007

China’s Global Reach – Latin America In 2012, the value of bilateral trade increased, amounting to USD$240 billion China - the third largest investor China is the major importer of Latin American raw materials

HKIAC in the Americas

Overview of Hong Kong and HKIAC

Asia’s Prime Location for Dispute Resolution Services Overview  Seat of Arbitration: Hong Kong  Pro-Arbitration Legislative Framework  Independent & Arbitration-Friendly Judicial System  Arbitral Institution & Rules: HKIAC  About HKIAC  HKIAC Administered Arbitration Rules  HKIAC Arbitrators

Asia’s Prime Location for Dispute Resolution Services  Effective 1 June 2011 (HK Ordinance Cap.609)  Previous statutes were based on a split regime – an international regime, based on the UNCITRAL Model Law, and a domestic regime  New Arbitration Ordinance unifies the two regimes  More user-friendly  Effectively extends the application of the UNCITRAL Model Law to all arbitrations in Hong Kong HK Arbitration Ordinance

Asia’s Prime Location for Dispute Resolution Services HK Arbitration Ordinance 1.Ease of Use Clear, certain and accessible arbitration law based on the Model Law 2.Confidentiality Protection of confidentiality in arbitration proceedings and related court hearing 3.Discovery Reasonable – no automatic right to discovery 4.Interim Measures Expanded provisions on interim measures 5.Costs  Assessment and taxation of costs and review of fees and expenses by courts

Asia’s Prime Location for Dispute Resolution Services HK Judicial System “One country, Two systems” Independent and based on Rule of Law Court of Final Appeal – an expatriate judge will sit as one of the 5 members of the Panel No concerns of a PRC “home court advantage” as the HK Court of Final Appeal has adjudication power fully independent of the PRC Supreme Court. Pro-Enforcement

 New York Convention for the Recognition and Enforcement of Arbitral Awards  Arrangement Concerning Mutual Enforcement of Arbitral Awards Between the Mainland and the Hong Kong SAR Enforcement of Arbitral Awards

Asia’s Prime Location for Dispute Resolution Services Established in 1985, independent and non-profit organisation 25 Council Members – Board of Directors 20 full-time staff International and multilingual Secretariat representing both common law and civil law traditions 300+ arbitrators, 500+ mediators HKIAC Overview

Asia’s Prime Location for Dispute Resolution Services Role of the HKIAC Administrator of arbitrations, mediations and domain name disputes Appointing authority under the Hong Kong Arbitration Ordinance Determine number of arbitrators Appoint arbitrator(s) Appoint mediator Hearing center for arbitrations and mediations Fundholder for arbitrations Administration center for arbitration institutes based in Hong Kong Chartered Institute of Arbitrators (East Asia Branch) Hong Kong Institute of Arbitrators Society of Construction Law

Asia’s Prime Location for Dispute Resolution Services HKIAC Arbitration: Institutional & Ad Hoc Institutional Arbitration  HKIAC Administered Arbitration Rules (2008, to be amended in 2013)  Procedures for the Administration of International Arbitration (2005) Ad Hoc Arbitration  Form 1 & 2 applications (to determine number of arbitrators and appointment of arbitrators)

Asia’s Prime Location for Dispute Resolution Services HKIAC Administered Arbitration Rules (2008) Key Features Flexible Fees Competitive Costs “Light Touch” Approach Expedited Procedures

Asia’s Prime Location for Dispute Resolution Services HKIAC Administered Arbitration Rules: Fees and Costs Arbitrator’s Fees - parties have a choice of agreeing to either (a) the Schedule of Fees attached to the Rules; or (b) a separate fee arrangement. Registration Fee - US$1,000 Administrative Fees - Schedule of Fees attached to the Rules  Administered fees are based on the value of the claim(s) and counterclaim(s) and capped at US$26,850.

Asia’s Prime Location for Dispute Resolution Services Disputed Amount (US$) HKIACICCKCABKLRCASIAC 500,0004,25014,1653,1556,5005,809 5,000,00011,85045,01523,90014,50016,827 10,000,00014,85057,51544,37119,50021,212 50,000,00026,85095,515122,98430,00039, ,000,00026,85099,215131,01030,00039,872 Cost Comparison: Administrative Fees

Asia’s Prime Location for Dispute Resolution Services HKIAC Statistics In 2012, HKIAC handled a total of 456 dispute matters 293 arbitration 116 domain name disputes 47 mediation disputes Of the 293 arbitration cases handled by the HKIAC in 2012, 68% were international 32% were domestic 68 cases were fully administered by the HKIAC in accordance with its Rules The total amount in dispute for administered cases was approximately US$1.8 billion

Asia’s Prime Location for Dispute Resolution Services HKIAC: International Arbitration

Panel/List of Arbitrators HKIAC Panel of Arbitrators HKIAC List of Arbitrators The HKIAC Online Searchable Database allows parties to search for arbitrators by way of nationality, professional background and areas of expertise, thereby ensuring the appropriate appointment for their dispute.

Asia’s Prime Location for Dispute Resolution Services HKIAC Administered Arbitration Rules (2013): Proposed Amendments Key Changes: Emergency arbitrator provision HKIAC’s prima facie power to join additional parties HKIAC’s power to consolidate arbitrations Enhanced system to determine number of arbitrators, including aHK$6,500 cap on arbitrator’s hourly rate Robust expedited procedure

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