Should parties insist on neutrality in arbitration?

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Neutrality is a key advantage of international arbitration. So don’t be surprised if your counterparty is not comfortable agreeing to a seat of arbitration in your home jurisdiction. But beyond the seat of arbitration, the choice of a neutral set of arbitration rules and/or a neutral institution to administer the dispute should also be considered. For example, parties can choose the Hong Kong International Arbitration Centre (HKIAC) to administer an arbitration under the 2013 HKIAC administered arbitration rules with the seat in or outside Hong Kong.

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Parties want a neutral forum, which provides a setting where they can be sure to have their dispute decided impartially and without fear of bias. So yes, put simply, parties should insist.

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The author, Kiran Sanghera, is a counsel at the Hong Kong International Arbitration Centre