The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

‘Buy-in’ by the Bahamian judiciary will be critical to the Bahamas successfully establishing itself as an international arbitration and dispute resolution centre, the Minister of Financial Services believes.

Addressing the opening of the fourth annual Arbitration and Investment Summit, Hope Strachan said: “Establishing the Bahamas as a successful International Arbitration Centre is largely dependent upon our judges. Their buy-in is essential to the success of this initiative.

“It is therefore crucial that we assist with capacity building for the judiciary. This entails ensuring or increasing their familiarity with the New York Convention and our Foreign Arbitral Awards Act 2009.

“Training and capacity building has been, and remains, essential to the smooth working of the Convention and, in turn, it should assist in building confidence in the Bahamas as an international arbitration centre for trade, for cross-border business and for foreign direct investment in the Bahamas.”

Mrs Strachan said the Government is moving to put the necessary legislative framework and infrastructure in place to position the Bahamas as a arbitration hub.

She added that consultation with the private sector is expected to begin shortly on the Bahamas International Commercial Arbitration Bill 2016.

“We believe that due to the Bahamas’ strategic location, its proximity to the Caribbean and North and South America, and the easy travel access to other emerging markets, the Bahamas is poised to become a neutral, state-of-the art arbitral centre, where economic disputes arising between parties in these countries may be resolved,” Mrs Strachan said.

“However, recognising that creating a highly sophisticated, modern arbitration centre equal to or better than our competitors is critical to our success, we are moving expeditiously to ensure that the necessary legislative framework and infrastructure is established, and that we build capacity by equipping and training practitioners to the highest degree possible.

“Consequently, a review of the existing legislation is underway. We are determined that the governing legislation upon which the industry will be established should reflect international norms and standards, and should be benchmarked against the United Nations Commercial International Trade Law (UNCITRAL),” the Minister continued.

“The Idea is to create legislative flexibility to ensure that parties and transactional lawyers from civil and common law jurisdictions might find that the Bahamas is on equal footing with many of the more popular, well-established jurisdictions as a seat for resolving transactional disputes.”

Mrs Strachan added: “The Law Reform Commission will commence the consultative period for the Bahamas International Commercial Arbitration Bill 2016.

“We are anticipating that this will be well received by stakeholders and those engaged in the sector, and anticipate that with their blessings we will be in a position to advance it for passage in the near future. It is intended that the present Bahamas Arbitration Act 2009 will be amended and applied for domestic arbitrations.”

Mrs Strachan said maritime and cruise ship arbitration was a specific focus for this jurisdiction, given the ability to tap into its ship registry.

“Financial services, through its myriad offerings; through its trusts, banking, and various financial products, offers a wide range of opportunities for practitioners in arbitration,” she added.

“Additionally, we must look outwardly, recognising and taking advantage of the opportunities which might exist through our trading partnerships and the value to be derived from membership in international trading organisations.”

Mrs Strachan said the Government has placed a “strategic and laser focus” on capacity building, with the Ministry of Financial Services set to host a three-day arbitration workshop from March 30- April 1

“The Workshop will take place in collaboration with the World Bank – International Centre for Settlement of Investment Disputes (ICSID), the International Council for Commercial Arbitration (ICCA), and the University of Miami – School of Law,” she added.