JCAA amends its Arbitration Rules
(posted on our MP&W website) September 20, 2006

The leading arbitration body in Japan, the Japan Commercial Arbitration Association (JCAA) has amended Rule 11 which deals with the language to be used in arbitral proceedings. The changes came into effect on July 1, 2006.

Under the previous JCAA Arbitration Rules, arbitration proceedings had to be conducted in Japanese or English or both and was therefore criticized as a possible barrier for greater use of international arbitration in Japan. Now this language restriction was revised. The parties can agree on any language. Only if the parties cannot agree on the language, the tribunal will determine the arbitration proceeding`s language. The correspondence between the parties and/or the arbitrator with the JCAA will be still conducted in Japanese or English.

So far, arbitration is not used very often in Japan, but its popularity is increasing continuously. The amendment of the JCAA Arbitration Rules with regard to the previous language barrier can be seen as a step to improve international arbitration praxis in Japan.