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An Instrument of Ratification will be deposited with the Government of the Netherlands (the depository for the Convention) after consideration of the Convention by the House and the execution of necessary amendments to the High Court Rules. The Convention will enter into force for New Zealand 60 days after the deposit of the Instrument.
Together with the 1899 Convention for the Pacific Settlement of International Disputes, the 1907 Convention establishes the Permanent Court of Arbitration (PCA) in The Hague and sets out a framework for resolving international disputes between States by a range of peaceful means. The Conventions include provisions for the exercise of good offices, mediation, international commissions of inquiry and arbitration.
New Zealand has been party to the 1899 Convention since 1900, and is a member of the Administrative Council of the PCA. In recent years the Council has campaigned for States not already party to the 1907 Convention to become party. It would be timely, so soon after the centennial year of the PCA, for New Zealand to ratify the Convention, and a welcome demonstration of our support for the international framework for the peaceful settlement of disputes.
Participation in the Convention would give New Zealand the ability, at its option, to resolve disputes with other States through a range of improved alternative dispute resolution mechanisms. In addition to symbolic advantages of New Zealand’s becoming party to the Convention, ratification also would help to clarify the basis for New Zealand’s participation in the activities of the PCA alongside States which are only party to the 1907 Convention.
There are no known disadvantages to New Zealand of ratifying the Convention.
The 1907 Convention is essentially an updated and improved version of the 1899 Convention. Practical differences between the two include the addition of provisions enabling a party in dispute openly to declare to the PCA International Bureau its readiness to submit the dispute to arbitration. This brings a new transparency to offers to arbitrate through the PCA. Other improvements include detailed provisions for international commissions of inquiry and a modified, more summary mode of procedure for arbitral tribunals dealing with disputes of a special or technical character. States Parties undertake to provide procedural assistance to commissions of inquiry and arbitral tribunals.
The Convention makes no express provision for the entry of reservations.
None.
Ratification of the Convention will not alter New Zealand’s share of the annual costs of the International Bureau of the PCA. This is approximately NZ$7,500.
From time to time, there has been discussion of further improving the system set up by the 1899 and 1907 Conventions, using the latter as a basis for such revision. It is not clear whether this would require a further international legal instrument.
No legislative or regulatory action is required to implement the Convention in domestic law. However, an amendment to the High Court Rules will be necessary to enable New Zealand to give effect to the Convention’s provisions on the service of documents.
The Ministry of Justice, the Department for Courts and the Crown Law Office have been consulted and support New Zealand’s ratification of the Convention. Additionally, the Secretary of the Rules Committee has been consulted on the amendment to the High Court Rules, and has indicated that this should pose no problem.
Under both the 1899 and the 1907 Conventions, New Zealand is entitled to nominate up to four persons to form a national group in the PCA, any of whom may be called upon to arbitrate disputes as necessary. Members of the group indicated in 1999 their support for New Zealand’s ratification of the Convention.
Pursuant to Article 96 of the Convention, a State Party may denounce the Convention by submitting notice in writing to the depository. Such denunciation will take effect one year after the date of receipt of the notification by the depository.
