Being Europe’s 6th largest economy, institutional arbitration reflects a considerably positive outlook in Turkey as being mostly driven by the numerous Chambers of Commerce of industrialized and the most populated three cities such as Istanbul, Ankara and İzmir.
A Snapshot of Institutional Arbitration in
Turkey
by Abdülkadir Güzeloğlu
8 February 2016
In today’s ever expanding world of international arbitration, it is known that
parties who desire to have their arbitration process administered by a
specialized body, can select an arbitration institution and include it within
their arbitration clause.
Considering
numerous advantages of institutional arbitration including implementing
pre-established arbitration rules, opportunity to appoint competent arbitrators
from a list, benefit from the assistance provided by an institution, have the
award scrutinized and probably the most important one to save time and money;
collectively make institutional arbitration an important and appealing dispute
resolution vehicle.
Therefore, it would be accurate to assert that for a country which aspires
to sustain its promising economic development, establishing and preserving a
trustworthy and proficient arbitration institution in order to augment security
of economic skies holds a crucial place.
Being Europe’s 6th
largest economy, institutional arbitration reflects a considerably positive
outlook in Turkey as being mostly driven by the numerous Chambers of Commerce
of industrialized and the most populated three cities such as Istanbul, Ankara
and İzmir. Among them, Istanbul Chamber of Commerce Arbitration Institution (ITOTAM),
with its 36 years of history and revised internal instruments pursuant to new
Code of Civil Procedure of 2011 and amended arbitration rules in 2015 still
holds pole position. Then, capital city, Ankara, hosts two bodies, Turkish
Union of Chambers and Commodity Exchanges Court of Arbitration (TOBB Tahkimi)
and the Ankara Chamber of Commerce Arbitration Institution. Lastly, the İzmir
Chamber of Commerce Arbitration Institution is situated in Aegean city of
İzmir.(IZTO)
However,
quite contrary to one’s expectation that these establishments must have been
dealing with a heavy workload since they are located in an advanced emerging
market, an academic research of 2010 draws an unpleasant picture. According to
that, between 2005 and 2010, TOBB and ITOTAM received 6 and 57 applications,
respectively. Additionally, it is stated that annual workload of IZTO
arbitration secretariat does not exceed three cases.
In 2009, Turkish
government published Strategy and Action Plan for Istanbul International
Financial Center. Regarding arbitration, latter envisaged establishment of the
Istanbul Arbitration Center, (ISTAC). Indeed, on 20.11.2014, Law No:6570
constituted the ISTAC. Pursuant to aforesaid plan’s timetable and relevant
law’s framework, ISTAC formed its General Assembly and devised modern
Arbitration Rules along with Mediation Rules in 2015 and became operative.
Although this newborn center has a number of well established players like
DIAC, ICC, LCIA or CRCICA as rivals, it is certain that following year will witness
revitalization of Turkish institutional arbitration practice by ISTAC. Should
you have any further comments, inquiries and questions on Turkish arbitration practice and institutions along with the ISTAC, do not hesitate to contact us
at info@guzeloglu.legal