A NEW arbitration Bill likely to become law next month will aid exporters in resolving disputes with international partners.

The Oireachtas is set to pass the Arbitration Bill 2008 into law in coming weeks. Once it is enacted, the Republic will become part of recognised global dispute resolution system operated by the United Nations Commission of International Trade Law.

According to Joe Kelly, partner at Dublin law firm AL Goodbody, it will mean that arbitration orders made by the Irish courts can be enforced in most of the world’s trading nations, making it easier for exporters and businesses who deal with firms based in other countries to resolve disagreements.

Mr Kelly explained yesterday that if an Irish business has a disagreement with a trading partner in countries such as Turkey, Iraq, Libya and a range of other jurisdictions, there is no guarantee they will be able get Irish court orders enforced against them.

Their only option is to pursue them through the courts in their home jurisdictions, which is both risky and expensive – sometimes to the point where it is not worth a company’s while pursuing the issue.

However, he pointed out that as most of the world’s trading nations recognise the UN international trade law system, the new law will make it easier to find a solution to disputes through arbitration.

“It will mean that disputes can be resolved by way of arbitration pursuant to this law, and any award made will be enforceable in other countries,” he said.

Mr Kelly added that disputes, which are mainly over money, have become more common since the global recession began two years ago.

Arbitration is the preferred first stop for parties in dispute here and abroad.

Mr Kelly said the Bill will make the Irish framework for this approach identifiable to trade partners and compatible with international practice in this area.

He added that reforming the law will also make it easier for businesses from abroad to trade here.