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      Proskauer on International Litigation and Arbitration:
       Managing, Resolving, and Avoiding Cross-Border Business or Regulatory Disputes
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The recognition and enforcement of foreign arbitral awards is a subject largely governed by multilateral conventions.
  1. Convention on the Recognition and Enforcement of Foreign Arbitration Awards of June 10, 1958, known as the "New York Convention"
    1. The Convention has been adopted by 144 countries, including the U.S.
    2. Chapter II of the Federal Arbitration Act (the "FAA") implements the Convention. 9 U.S.C. §§ 201-08.
    3. "The goal of the [New York] Convention, and the principal purpose underlying American adoption and implementation of it, was to encourage the recognition and enforcement of commercial arbitration agreements in international contracts[.]" Scherk v. Alberto-Culver Co., 417 U.S. 506, 520 n.15 (1974). Federal policy favoring arbitration "applies with special force in the field of international commerce." Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 631 (1985).
  2. Inter-American Convention on International Commercial Arbitration, known as the "Panama Convention," adopted by the U.S. in 1990
    1. 16 countries in North and South America have adopted the Panama Convention.
    2. Implementing legislation appears in Chapter III of the FAA.
    3. The Panama Convention takes precedence over the New York Convention if a majority of the parties to an arbitration agreement are from countries that have ratified the Panama Convention. Progressive Casualty Insurance Co. v. C.A. Reaseguradora Nacional de Venezuela, 802 F.Supp 1069, 1074 (S.D.N.Y. 1992), rev'd, 991 F.2d 42 (2d Cir. 1993).
    4. In all other cases, the New York Convention applies. 9 U.S.C. §305(2).
    5. For purposes of enforcement of arbitral awards, the conventions are applied similarly in U.S. courts and we primarily discuss the New York Convention.

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