The Ratification of the New York Convention in Ethiopia: Towards Efficacy and Avoidance of Divergent Paths

Abstract

Ethiopia’s ratification of the New York Convention for the recognition and enforcement of foreign arbitral awards and arbitration agreements is a welcome development. The Convention has been greatly facilitating cross-border mobility of arbitral awards and arbitration agreements in international commercial transactions. The entry into force of the New York Convention (as of 13 March 2020) and the enactment of the Arbitration and Conciliation Proclamation No.1237/2021 have ushered a relatively new era of modern arbitral regime in Ethiopia. In this regard, the necessary legal and formal infrastructure should be laid down for the proper implementation of the New York Convention. This article examines the ramifications of the three reservations registered by Ethiopia under the Convention; namely, the reciprocity, commercial and the non-retroactive application of the Convention. Furthermore, the multiplicity of enforcement regimes in the Ethiopian arbitral system related to these reservations are expounded. The formality requirements enunciated under the New York Convention are elaborated and the need for setting out the legal and institutional framework for contextualization thereof are dealt with. The possibility for award-creditors to resort to the more favourable local law or treaty other than the New York Convention and the recent trend of recognizing and enforcing arbitral awards, which are set aside or annulled in the place of arbitration are highlighted.