Explanatory Memorandum
(Circulated by authority of the Attorney General, Senator the Hon George Brandis QC)SCHEDULE 2-INTERNATIONAL ARBITRATION
GENERAL OUTLINE
133. Schedule 2 will make amendments to the International Arbitration Act 1974. The International Arbitration Act implements Australia's obligations to enforce and recognise foreign arbitration agreements and arbitral awards under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards done at New York on 10 June 1958 (the New York Convention). The Act also gives the force of law to the United Nations Commission on International Trade Law (UNCITRAL) Model Law on International Commercial Arbitration (the Model Law) as the primary arbitral law that governs the conduct of international arbitrations taking place in Australia.
134. The Act was amended in 2010 to implement changes to the UNICTRAL model law that were adopted in 2006. This new amendment builds upon the 2010 amendments to clarify the application of the Act to international commercial arbitration agreements concluded prior to 6 July 2010.
International Arbitration Act 1974
Item 1: Section 21
135. Section 21 of the International Arbitration Act 1974 currently provides that if the United Nations Commission on International Trade Law (UNCITRAL) Model Law applies to an arbitration, State and Territory law does not apply to that arbitration. Section 21 came into effect on 6 July 2010.
136. Item 1 will insert (1) before the text of section 21.
Item 2: At the end of section 21
137. Item 2 will add subsection (2) to section 21, which will clarify that section 21 applies to arbitrations pursuant to arbitration agreements made before, on or after 6 July 2010. This new provision will clarify the retrospective application of section 21, providing certainty to private parties with arbitration agreements completed before 6 July 2010.