Trade Disputes in Thailand

Alternative dispute resolution processes are becoming increasingly popular in Thailand. These include mediation and arbitration. However, conciliation is another option.

Chanintr emphasizes the importance of a strong team and unified industry in resolving trade disputes. He also stresses that it is important for developing countries to take action, even if the outcome may be adverse.

Negotiation

Negotiation is a common pathway to dispute resolution in Thailand. It is often a more cost-effective approach to litigation than court proceedings. Moreover, it can help to preserve relationships.

Legal negotiation requires skills and knowledge to address disputes in a professional and appropriate manner. Whether conducted through direct discussion or via an ADR process like mediation, it is vital for businesses that wish to operate in Thailand.

The Philippines and Thailand have agreed to settle a trade dispute over customs valuation procedures for cigarettes. The agreement sets up a bilateral consultative mechanism for their government authorities to discuss the issue on a regular basis and build trust. It also establishes a dispute settlement forum that will resolve the dispute in a timely and fair manner. The parties will also work together to ensure that their customs valuation regulations are up-to-date and consistent with international trade rules. This is a significant development in resolving the trade dispute and is a positive step towards building mutual confidence.

Mediation

While Thailand is not a litigious society, many disputes are resolved by mediation or arbitration. These are popular methods of dispute resolution in Thailand, and arbitration clauses are often included in commercial contracts.

During mediation, disputing parties meet with a neutral mediator to discuss their differences and work on a solution that is acceptable to both sides. Mediators can help disputing parties understand each other’s perspectives and how those issues may affect their broader commercial interests.

In addition to legal advice, the process of mediation allows disputing parties full opportunity to obtain and incorporate expert information and advice into the case. Ultimately, however, the decision-making power remains with the dispute participants. It is recommended that any mediated agreement involving legal issues be reviewed by a lawyer before it is signed. This is an opportunity for both sides to ensure their rights are protected in the case of future litigation.

Arbitration

A trade dispute may be resolved through arbitration, a formal procedure in which both parties submit their claims to an arbitral tribunal for adjudication. Arbitration can provide a quicker and less expensive resolution to disputes than going to court.

An arbitration agreement can be included in a contract or drafted as a separate document. In addition, the Thai arbitration law provides that the arbitral tribunal can determine its own rules of procedure, subject to general principles of fairness.

In January 2017, the Thai Arbitration Institute (TAI) issued a new set of rules that make substantial amendments to improve efficiency, consistency and clarity of arbitration proceedings. For example, it simplifies the process for obtaining work permits for foreign arbitrators and counsel to act in arbitration cases in Thailand.

Witness conferencing is not common in Thai arbitration, but the TAI rules allow it and also require that parties must make all expert witnesses available for examination at a hearing. Testimony from witnesses who are specially connected with one party is treated the same as testimony from other unrelated witnesses, although the tribunal is authorised to decide the weight of such evidence.

Court Litigation

While legal litigation remains a popular method of dispute resolution in Thailand, it is a costly and time-consuming process. Moreover, court proceedings can damage relationships between disputing parties and set bad precedents.

Legal disputes can be resolved through negotiation and mediation, which are widely used methods of dispute resolution in Thailand. These methods are also included in most commercial contracts. THAC’s seasoned lawyers and mediators can provide tailored solutions that suit your specific circumstances and help you resolve trade disputes in the most cost-effective manner possible.

Despite being more costly than alternative options, legal litigation can be an effective way to resolve a trade dispute in Thailand. Litigation can also set legal precedents and offer enforceable court judgments. However, it is important to remember that litigation can be a lengthy and expensive process, so it is important to weigh the pros and cons before proceeding with this option. A lawyer can help you determine whether legal action is necessary and guide you through the complexities of the Thai legal system.

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