Part V of the Arbitration Act deals with international commercial arbitration. It incorporates into Maltese Law, the Model Law on International Commercial Arbitration. Thus the conduct of international commercial arbitration under the Act will be regulated by a well-known and tested legal regime which has been adopted in many States. This should assist in providing the Arbitration Act with the necessary stability and security which the international arbitral process normally requires.

The Arbitration Act also allows the parties to an international commercial arbitration considerable flexibility in this regard. They may choose to exclude the operation of the Model Law, and apply their own rules or the Act's provisions on domestic arbitration. Indeed, if they do choose to apply the said provisions, there is no obligation to register the award with the MAC.

The setting aside of an award delivered under Part V is determined by the provisions of the Model Law, as are the grounds for refusing recognition or enforcement. In this respect, the Arbitration Act appoints the Court of Appeal as the competent Court to which a party applies for the recognition and enforcement of such an award.

The Arbitration Act, in its Second Schedule, incorporates, into Maltese Law, the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, the 1923 Geneva Protocol on Arbitration Clauses and the 1927 Geneva Convention on the Execution of Foreign Arbitral Awards.

When acceding to the New York Convention, the Maltese Government made the following declaration:

"1. In accordance with the relevant provisions of the Convention, Malta will apply the Convention only to the recognition and enforcement of awards made in the territory of another Contracting State.
2.The Convention only applies in regard to Malta with respect to arbitration agreements concluded after the date of Malta's accession to the Convention and awards pursuant thereto made after the date of Malta's accession to the Convention."

The Third Schedule to the Arbitration Act incorporates the 1965 Washington Convention on the Settlement of Investment Disputes between States and Nationals of other States. The Arbitration Act provides that ICSID awards shall be recognized and enforced by the Courts of Malta as if such awards were final judgments under the laws of Malta.

The Malta Arbitration Centre is designated as the competent authority to receive certified copies of the award when a party seeks recognition or enforcement in Malta.

ARBITRATION CHAMBERS

Arbitration as a means of settling international commercial disputes has long been established in a number of countries. Malta has devised an innovative feature which it is hoped will enable it to compete with long-established centers of arbitration. The Arbitration Act makes provision for the formation of "Arbitration Chambers" between residents and non-residents. The objects of such Chambers are limited to the provision of (i) services of representation and assistance in arbitration proceedings; and (ii) services as arbitrators.

The status of such an "Arbitration Chamber" is that of a limited liability company under the Malta Companies Act of 1995, however it has to be registered with MAC before it is allowed to commence its activities. Non- resident members of an "Arbitration Chamber" will be entitled to the advantageous fiscal treatment granted by the Act. In effect, non-residents will only pay a very modest amount of tax in Malta following the distribution made by such a Chamber. It is noteworthy that Malta has concluded a considerable number of double taxation agreements with other States. In order to enjoy this beneficial treatment the arbitration proceedings must be registered with MAC.

Part V of the Arbitration Act