The Bahamas is moving ahead with its plans to become an Arbitration center. In a bid to tap into a possible lucrative sector for the country, plans are underway to set The Bahamas as a top arbitration center in the region. To meet this objective, several professionals from a range of sectors have successfully completed a certification course in Arbitration.

A Chartered Institute of Arbitrators Installation Ceremony was held at Luciano's Italian Restaurant on Wednesday, September 23. Minister of Financial Services and Local Government, the Hon. Hope Strachan delivered remarks.

After congratulating the candidates for successfully completing the course, Minister Strachan acknowledged that the occasion was particularly noteworthy as it coincided with the centenary anniversary of The Chartered Institute of Arbitration.

She said that the Ministry of Financial Services is 'mandated' to create The Bahamas as an international arbitration hub.  She also commended The Chartered Institute of Arbitrators for its 'timely' theme, “Arbitration, essential to national development – a national solution that cannot be ignored.”

“I will briefly share with you four key areas that the Ministry has identified as essential for the development of The Bahamas as an international arbitration hub,” said Minister Strachan. “First, before investing large amounts in a state of the art arbitration centre, it is essential that we identify our key markets, and know their preferences when choosing an arbitral seat or venue.  Second, policy makers must be prepared to allow legislative flexibility in order to keep up with global arbitral trends.  Third, our professionals must be prepared to foster the liberalization of the legal profession in order for international arbitration to thrive.  Fourth, continued training and education in arbitration and alternative dispute resolution must be solidly anchored within the constitution of professional organizations.”

In relation to the first task of identifying key markets, the Minister said that plans are underway to take advantage of the country's natural geographical proximity to North and South America, including the Caribbean, which makes The Bahamas a natural arbitral hub.

She said that the Ministry of Financial Services will continue to work in tandem with various key stakeholders including The Bahamas Bar Association, The Bahamas Chamber of Commerce, The Bahamas Financial Services Board, The Bahamas Maritime Authority, The Grand Bahama Port Authority as well as The Bahamas Branch of the Chartered Institute of Arbitrators for the successful and efficient conduct of the survey.

Minister Strachan said that a second essential element for The Bahamas to develop as a sophisticated and reputable regional arbitral hub is to provide a sound legislative basis that is 'recognizable and acceptable' to states of different legal or economic systems of the world.

“For this reason, adopting the United Nations Commission on International Trade Law’s (UNCITRAL) Model Law on International Commercial Arbitration, recognized as the international legislative standard in many jurisdictions, will allow flexibility that will facilitate the interpretation of cases in line with internationally accepted principles,” she said.

Other plans include a lecture and technical workshop by the Principal Legal Advisor of The United Nations Commission on International Trade Law on the Model Law and its benefit for the development of The Bahamas as an international arbitration hub. These events will be held November 13 and 14.
 
She said that as the country continues to impacted by the globalization of the  economy, it is imperative that global legal market is carefully examined.

Other collaborations to strengthen the sector are partnerships with other ministries and the private sector.

“Over the next few weeks, my Ministry will collaborate with The Attorney General’s Office and key stakeholders to establish a Law Review Committee that will examine the reform of the Legal Profession Act with the primary aim of enhancing the efficiency of the Financial Services industry of The Bahamas.”

The Minister also emphasized the need for education and training in the financial sector and to establish a long-term strategy and vision to develop internationally recognized arbitrators and mediators from both private practitioners and in-house counsel, as well as from the public sector.

“As you may know, our government often enters into contracts for various commercial transactions.  Also, Caribbean nations are embracing more and more region state investment treaties and free trade agreements that contain dispute resolution provisions,” said Minister Strachan.

She said that the government is “committed' to improving the skills and substantive knowledge of Government officers in the area of arbitration and other alternative dispute resolution mechanisms. To this end, the Ministry will be hosting a workshop in March of next year in conjunction with the World Bank International Centre for the Settlement of Dispute Resolution (ISCID).  She said that Government officials from CARICOM and CARIFORUM will be invited to attend a workshop which will be facilitated by the Secretary General of ISCID.

Partnerships will also be considered with the Judiciary. She said that the Ministry of Financial Services will collaborate with the Chief Justice, Sir Hartman Longley, to organize a “Judicial Dialogue on The Bahamas Foreign Arbitral Awards Act of 2009” otherwise known as The New York Convention during the same week when the ISCID workshop will take place.  The Judicial Dialogue will be facilitated by UNCITRAL and the International Council of Commercial Arbitration.

“This is the golden age of international arbitration,” said Minister Strachan. “With the support of our Policy makers, the Judiciary and the legal profession along with other professional organizations, I am confident that The Bahamas will not ignore the essential ingredients required to be at the forefront of dispute resolution in the Americas and in making The Bahamas vision of becoming an international arbitration center a reality.”