Gafta Arbitration is based on its own rules, which are contained in Annexes 1 to 5 of the Convention. An arbitral tribunal is appointed by mutual agreement between the parties or, failing such agreement within 30 days after receipt of the request for arbitration by either party, by the Secretary-General who may also appoint an appointing authority. The rules have been in use since 1884 and are effective, efficient and cost-effective.
Gafta Arbitration is an efficient, cost-effective and impartial dispute resolution mechanism for the agricultural trade.
Here are some of the problems with Gafta Arbitration:
The problem is that Gafta Arbitration is an inefficient, expensive and biased dispute resolution mechanism.
The solution to this problem is to use a different arbitration system. One option could be an independent forum where there are no pre-existing relationships between the parties involved in the dispute.
The benefit of this alternative would be greater transparency, fairness and cost effectiveness for all parties involved in the arbitration process.
What are other options? There are several other ways you can resolve your disputes without using Gafta Arbitration or its alternatives such as mediation and litigation in ordinary courts of law, which may provide more flexibility than these other methods but can also lead to higher costs for both parties involved (depending on how long it takes before reaching a settlement).
Gafta arbitration resolves disputes on agricultural commodities quickly and fairly
The Gafta Arbitration Rules https://fortiorlaw.com/news/gafta-arbitration/ are designed to resolve disputes quickly, efficiently and impartially. If you’re connected to the international agricultural commodities industry, you will have come across them at some stage in your career.
The Gafta Rules were first published in 1975 with the support of USAID (United States Agency for International Development). They were developed as an alternative to costly and time-consuming court proceedings for resolving disputes arising from agricultural commodity trade transactions. They were designed specifically for use by traders within the global grain trade community who wanted an alternative dispute resolution process that was fast, fair and cost effective.
For more than 40 years now these rules have proven their worth through their ability to resolve disputes efficiently without lawyers or formal hearings - saving both parties time and money.