FACT concludes cooperation agreement with the Australian Centre for International Commercial Arbitration (ACICA)

FACT is pleased to announce that it has recently concluded a cooperation agreement with the Australian Centre for International Commercial Arbitration (ACICA) in February, 2007.

ACICA is a not-for-profit public company which was established in 1985. The objects of ACICA are to support and facilitate international arbitration and to promote Sydney and Australia as a venue for international commercial arbitrations. More information on ACICA can be found here: www.acica.org.au

Arbitration centre with France planned
The Tribune, June 20, 2006

India and France have joined hands to jointly set up the Indo-French Centre of Arbitration and Conciliation to provide a low-cost platform to companies in both countries to resolve their disputes.

It is considered the first major initiative by both the countries that would help companies in both the countries to resolve disputes amicably, without involving International Chamber of Commerce, Paris, an international body to settle disputes among the corporate world.

“An agreement has been signed in this regard between FICCI Arbitration and Conciliation Tribunal (FACT) of India and the Centre Interprofessionel de Mediation et d’Arbitrage (CIMA) of France in France last week during Finance Minister P. Chidambaram’s visit to France,” said Arun Chawla, Director, FICCI who signed the agreement on India’s behalf.

Talking to The Tribune today, he disclosed that once formed the Centre would be administrated by a board, with equal representation by both parties, which will be responsible for the operation and promotion of the Centre. It will have offices in India and France as well.

France and China already have a joint set-up to resolve corporate disputes.

He said, if succeeded, it would pave a way for setting such bodies with other countries as well. “There is already a proposal to set up inter-regional Arbitration body in the SAARC region to promote trade and settle corporate disputes in an amicable and cost-effective manner,” he said.

At present, there are over 300 French companies operating in India, mainly in the field of cement, chemicals, oil refinery, food products, telecommunication and banking services. The major companies include Lafarge, Alstom, L’Oreal, Aventis, Reynolds and Schneider.

The bilateral trade between the two countries has increased, he said, from $ 1415 million in 1996-97 to $ 3467 million by 2004-05, and the target is to double it by 2009-10.

Out of total foreign direct investment (FDI) amounting $ 30.4 billion in India between 1991-2005, the French companies have invested $ 0.77 billion, about 2.5 per cent of total FDI.

Both the countries are targeting FDI from France to India to $ 1 billion every year, and such joint structures are likely to give a boost to bilateral trade between the two countries.

The major IT and pharmaceutical Indian companies like Tata Consultancy Services, Wipro, NIIT, Larsen and Toubro, Ranbaxy and Zydus Cadila have make heavy investments in France.

These companies would benefit from this centre. “They would be able to resolve the dispute at a fractional cost of the costs that they would have to incur through ICC, Paris,” added Mr Chawla.