1. What is Arbitration?

Arbitration is a procedure in which a dispute is submitted, by agreement of the parties,

to one or more arbitrators who make a binding decision on the dispute. In choosing
arbitration, the parties opt for a private dispute resolution procedure instead of going to
court.
Its principal characteristics are:
a.
b.
c.
d.
e.

Arbitration is consensual
The parties choose the arbitrators
Arbitration is neutral
Arbitration is a confidential procedure
The decision of a tribunal is final and easy to enforce

2. Origin of Arbitration
The origin of arbitration is lost in obscurity. At what time or place man first decided
to submit to his chief or to his friends for a decision and a settlement with his
adversary, instead of resorting to violence and self-help, or to the public legal
machinery available, is not known; and any inquiry of this sort would belong more
properly in the history of social growth and ethics than in either law or economics.
In all religions there are many injunctions to be at peace with one's neighbors and
to be reconciled speedily with an adversary. Aristotle urged the benefits of
conciliation.' In Heraldus' Animadversiones there is described a court of
reconcilement that existed among the Greeks. It was common among the Romans
"to put an end to litigation" by means of arbitration. Bell says "this amicable
private tribunal is of an earlier date than the public courts." The introduction of
arbitration seems to be coeval with the foundation of our law. In the earliest forms
of society disputes were tried by the heads of families, whence is derived the
patriarchal tribunal now given to the office of arbitrator.
3. Is the decision of the permanent court of arbitration binding?
The PCA does not make any decisions, and it does not enforce them.
The PCA provides various services to help parties involved in arbitration, like administrative
support, rules of procedure, translators, facilities, and the like. But any actual cases are
handled by arbitrators who do not work for the PCA, usually an international group of judges.
Unlike a court, where one party can sue an unwilling defendant, in arbitration parties are only
there after agreeing to arbitration. Sometimes that's done in advance as part of a treaty or
contract. Other times it's done after a dispute arises. Either way, the parties agree to abide by
the decision of the arbitrators.
If the parties are countries, and one decides to reject the result of the arbitration, it's much like
when a country violates any other agreement. The aggrieved country could go to war, impose

sanctions, try to get a UN Security Council resolution, or just make a lot of diplomatic
protestations. But neither the PCA nor the arbitrators have any ability to enforce anything.

Another Opinion: Yes. All decisions, called "awards" are binding on all the parties in the
dispute and have to be carried out without delay. There are some post-award proceedings
available to parties unhappy with the tribunal's decision, but they are limited, particularly in
inter-state disputes. Experts also say enforcement is often the "Achilles Heel" of public
international law. However, states who ignore or disregard the PCA's ruling risk losing
credibility and losing out in the so-called "court of world opinion".

When China ratified the Convention and agreed to be bound by any decision that resulted from
such a compulsory third party determination, this consent was a free exercise of Chinese
sovereignty and a solemn international treaty commitment to respect and comply with
whatever decision emerged from the proceedings.
Just think what a legal system the world would have if a country that has consented to
compulsory third party decision-making as countries have in over 90 international
agreements could simply renounce its solemn treaty promise while remaining
within the treaty system and thumb its nose at the decision of the authorised
independent tribunal. The provisions of UNCLOS clearly prohibit such conduct, which
obviously constitutes a violation of international law.
4. History of Permanent Court of Arbitration
The PCA is the world's oldest inter-governmental organisation dedicated to
resolving international disputes through arbitration "and other peaceful means".
It came to life in 1899 during the first Hague Peace Conference convened by Czar
Nicholas II of Russia. It refers to contracts, special agreements and various treaties
such as those set up by the UN Commission on International Trade Law (UNCITRAL)
and the UN Convention on the Law of the Sea (UNCLOS) to rule in disputes.
The court is one of the oldest institutions for international dispute resolutions. The
court was established in 1899 by the first Hague Peace Conference under Articles
20 to 29 of the 1899 Hague Convention for the Pacific Settlement of International
Disputes.
5. Where is the PCA located?
The Permanent Court of Arbitration (PCA) is an intergovernmental organization
located at The Hague in the Netherlands. The PCA is not a court, but rather a
bureaucracy that provide services of arbitral tribunal to resolve disputes between
member states, international organizations, or private parties arising out of
international agreements. The cases span a range of legal issues involving

territorial and maritime boundaries, sovereignty, human rights, international

investment, and international and regional trade. It should not be confused with
the International Court of Justice which is the primary judicial branch of the United
Nations, while the PCA is not a UN agency.
6. Who are the members of PCA?
Members of the Court are potential arbitrators appointed by member states. Each
member state is entitled to nominate up to four persons of known competency in
questions of international law, of the highest moral reputation and disposed to
accept the duties of arbitrators as Members of the Court. Members of the Court
are appointed for a term of six years, and their appointments can be renewed.
7. Is PCA attached with UN?
PCA should not be confused with the International Court of Justice which is the
primary judicial branch of the United Nations, while the PCA is not a UN agency.
8. Is PCA a court?
The PCA is not a court in the traditional sense with judges to rule on issues. Rather
it consists of arbitral tribunals put together for each case. Hearings are not open to
the public or press, unless both parties in the dispute agree.
9. What is the jurisdiction of PCA? What cases does PCA resolve?
???
10.
Is the Philippines signatory to the creation of PCA?
Yes!

1. Why did the Philippines file a case against China?

The 2012 Scarborough Shoal standoff was one of the factors that prompted the Philippines to file a case against
China. Tensions between the two countries escalated when Chinese surveillance ships prevented Philippine
authorities from apprehending Chinese vessels found poaching endangered Philippine marine species at the
shoal.
The dispute over maritime features in the South China Sea has been ongoing for decades prior and involved
other Southeast Asian countries such as Vietnam, Malaysia, Indonesia.
The Philippines has exhausted almost all political and diplomatic avenues for a peaceful negotiated settlement
of its maritime dispute with China. On numerous occasions, dating back to 1995, the Philippines has been
exchanging views with China to peacefully settle these disputes. To this day, a solution is still elusive, the
Department of Foreign Affairs (DFA) said in a statement on January 22, 2013 when it first initiated arbitration
proceedings.
We hope that the Arbitral Proceedings shall bring this dispute to a durable solution, it said.
Philippines asked the Arbitration Tribunal to invalidate Chinas nine-dash line claim because it does not
conform to the United Nations Convention on the Law of the Sea (UNCLOS), an international treaty signed and
ratified by both China and the Philippines. It is regarded as the constitution of the seas.

2. What does arbitration mean and what will it achieve?

Arbitration refers to a process in which a party submits a dispute to an unbiased, independent third party. Its
main goal is to settle and conclude the disputes presented.
The Permanent Court of Arbitration is an intergovernmental organization established in 1899 that designates
arbitral tribunals to resolve disputes between and among nations. It is based in The Hague, Netherlands, and
currently presides over the arbitration case.
Philippines brought the case before the tribunal to dispute Chinas claim of indisputable sovereignty over
almost the entire South China sea through its nine-dash line claim.
The five arbitrators assigned to the case are Judge Thomas A. Mensah (President), Judge Jean-Pierre Cot, Judge
Stanislaw Pawlak, Professor Alfred H. Soons, and Judge Rdiger Wolfrum.
3. What is Unclos and what is the EEZ?

Graphic on contested claims in the South China Sea. China claims nearly the entire sea
through its nine-dash line which overlaps with the 200-nautical mile exclusive economic
zone (EEZ) of several countries.
The United Nations Convention on the Law of the Sea (Unclos) is an international treaty that
defines the limits of a nations maritime sovereignty claims. This convention was ratified by both the
Philippines and China. Under its provisions, areas within 200 nm from the countrys baselines would be part of
the EEZ.
Unclos states three basic maritime features:
Islands under the sovereignty of a country are entitled to a 12 nm (approximately
22 kilometers) territorial sea and a 200 nm (approximately 370 km) exclusive economic
zone (EEZ). The state may exclude foreign entities within its territorial sea and has sole
right to exploit resources found within the EEZ.
Rocks or reefs are maritime features that are mostly below water but have
protrusions that remain above water during high tide. Such features are entitled to only a
12 nm territorial sea and no EEZ. Examples of such are Bajo de Masinloc, also known as

Panatag shoal or Scarborough shoal, which lies 120 nm off the coast of Zambales
province.
Low-tide elevations are fully submerged rocks or reefs. These are not entitled to
any territorial sea or EEZ. In the past several years, China has conducted massive land
reclamation projects on several submerged reefs in the Spratly group of islands turning
them into artificial islands and establishing military installations.
Unclos states that artificial islands do not possess the status of islands and are not allowed to have a
territorial sea. It also states that only the coastal state has the right to build artificial islands in its EEZ.
4. What is so important about the South China Sea?
The South China Sea contains three groups of maritime featuresthe Spratly and Paracel groups of Islands and
Scarborough Shoal. All countries involved in the maritime dispute recognize that the sea is rich in resources
such as fish and other marine life, and reserves of oil.
The sea is also a major shipping lane in Southeast Asia prompting many countries worldwide to call for restraint
so as not to disrupt the vital trade route. The 3.5 million square km sea is also strategic as it provides access to
nearly the entire Southeast Asian region.
5. What are the bases of the Philippines and Chinas claims?

Former Foreign Secretary Albert del Rosario listed the Philippines five main claims during his speech delivered
in front of the UN tribunal last July 7, 2015:
Chinas historic rights claim violates Article 57 of the Unclos, containing the
provisions of the 200 nautical miles EEZ;
Chinas nine-dash line has no basis under international law; rather, it only
emphasizes the limitations presented by their historic rights;
Some parts of the South China Sea are rocks that therefore have no EEZ. In
accordance with Article 121, Paragraph 3 of the Unclos, China cannot claim these
maritime features as most of these are reefs and low-tide elevations;
China has breached the Convention by interfering with the Philippines exercise of
its sovereign rights and jurisdiction; and
Destructive fishing practices done by China brought about permanent damage on
coral reefs and marine life, including some areas within the Philippines EEZ.
In 2002, the Association of Southeast Asian Nations (Asean) and China issued a Declaration on the Conduct
(DOC) of Parties in the South China Sea to ensure peaceful settlements of disputes. In line with this, China
asserted that bilateral consultations would be the best solution in settling the rift.
Del Rosario, however, countered that despite the Philippines diplomatic efforts in resolving this issue with
China through the provisions of the DOC, the latter still continued its cabbage strategy in claiming majority
of the South China Seataking small steps at a time such as enforcing its nine-dash claim in 2009 and
forcefully exploiting living and nonliving resources from the islands and the Scarborough Shoal. The
Philippines then concluded that submitting an arbitration case to the UN, under international law, would be the
most appropriate way to resolve this dispute.
6. Are there other countries involved in the arbitration case?
The territorial disputes in the South China Sea began decades ago when Japan decided to renounce its claims on
the Spratly Islands. The Philippines, Brunei and Malaysia all argue that either all or some parts of the Spratlys
are part of their respective EEZs; Vietnam says they have already occupied both the Spratly and Paracel islands
centuries ago; and China claims that they have historic rights over the Islands since their ancestors were the
first to discover and name them.
Two of these claimant countries attended as observers during the hearings of the tribunal, namely Vietnam and
Malaysia. Also part of the observer team were Indonesia, Thailand and Japan.

7. What will happen after the arbitral tribunal issues a decision?

Once the tribunal issues a decision on July 12, the case could go either way: The tribunal could consider Chinas
historic rights and nine-dash line claims, or they could agree with the Philippines claim that some maritime
features being claimed by China are not entitled to the 200 nautical mile EEZ.
Whatever the decision may be, both the Philippines and China cannot make an appeal. According to the UN
Conference on Trade and Development, awards or decisions are final and binding, and there is no right of
appeal.
The Philippines claimed an initial victory on October 29, 2015 when it won the first round of the proceedings
after the tribunal decided it had jurisdiction over the case. The tribunal at The Hague, Netherlands concluded
that they had every right to hear the case, thus thrashing Chinas strongest argument.