An analysis of article 2 of new york convention rules

Article 2 of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) sets out the scope of the Convention and the definition of a "foreign award". Here's a breakdown of the article:

Article 2: Scope of the Convention

The Convention applies to the recognition and enforcement of arbitral awards made in the territory of a State other than the State where the recognition and enforcement are sought.

Key points:

  1. The Convention only applies to awards made in a foreign country, i.e., a country other than the one where the recognition and enforcement are sought.
  2. The Convention does not apply to awards made in the same country where recognition and enforcement are sought.

Article 2: Definition of a "Foreign Award"

A "foreign award" is an arbitral award made in the territory of a State other than the State where the recognition and enforcement are sought.

Key points:

  1. A foreign award is an arbitral award that is made in a country other than the one where the recognition and enforcement are sought.
  2. The term "foreign award" does not imply that the award is necessarily made by a foreign arbitral tribunal. It simply means that the award was made in a foreign country.

Analysis:

Article 2 sets the stage for the Convention by defining the scope of its application and the definition of a "foreign award". The article makes it clear that the Convention only applies to awards made in a foreign country, and not to awards made in the same country where recognition and enforcement are sought.

This article is important because it establishes the territorial scope of the Convention, which is a key factor in determining whether an award is eligible for recognition and enforcement under the Convention. It also clarifies that the Convention is not limited to awards made by foreign arbitral tribunals, but rather applies to any award made in a foreign country, regardless of the nationality of the parties or the arbitral tribunal.

In practice, Article 2 has been interpreted by courts and tribunals around the world to mean that the Convention applies to awards made in any country other than the one where recognition and enforcement are sought, regardless of the language, currency, or other factors. This has facilitated the recognition and enforcement of international arbitral awards across borders, promoting international trade and commerce.