Trade Disputes in Thailand
Trade disputes can often be resolved through negotiation and mediation. These are popular methods of dispute resolution and feature in most arbitration clauses in commercial contracts.
The THAC Mediation Centre is one such venue. The court’s specialized focus on intellectual property and international trade issues underscores the government’s commitment to fostering innovation, protecting creators’ rights and creating a level playing field for businesses.
Litigation
The choice to litigate or seek alternative dispute resolution is commonly an anticipatory decision made by parties in contracts before a dispute arises. The courts of Thailand can be consulted for court litigation or the parties may elect arbitration uniquely tailored to their needs by selecting an arbitration rules and institute, venue and number of arbitrators.
The establishment of the IP&IT Court has significant implications for Thailand’s innovation-driven economy and its participation in global trade. By providing a specialized forum to resolve intellectual property and international trade disputes, the court serves as a deterrent against trademark infringement and unfair business practices, while contributing to the development of a robust body of jurisprudence on these topics.
In addition, the court is closely integrated into the broader legal system and appeals from the IP&IT Court can be made to the Supreme Court, ensuring that cases are considered by judges with expertise in relevant issues. This ensures consistency in legal interpretations and allows for a higher level of review and scrutiny of cases.
Arbitration
Without consolidated public records it is difficult to determine which arbitral institution handles the most international trade disputes. Nevertheless, it seems that TAI is the preferred choice.
The arbitration law in Thailand is largely based on the UNCITRAL model law on international commercial arbitration. However, there are several distinctive features which are unique to Thai law.
Among other things, Thailand is party to the 1958 New York Convention and has enacted its own version of the convention into its Arbitration Act. The country also is a signatory to other treaties facilitating recognition and enforcement of arbitral awards.
Aside from this, there are other factors to consider when deciding which dispute resolution proceeding is best for a specific case. For example, a court may decline to enforce an arbitral award on grounds that the decision is contrary to public policy and good morals or that it was obtained by fraud or illegality. Our lawyers in Thailand can advise you of the nuances involved in arbitration proceedings in the country.
Negotiation
Negotiation is an important aspect of dispute resolution in Thailand. In general, disputes are settled through negotiations unless parties decide to go through litigation.
As a strong relationship-oriented culture, Thai negotiators tend to focus on developing relationships and building trust. It may be helpful to find a local contact to represent your interests in the negotiation process. However, beware of using aggressive techniques such as extreme openings, attempting to make the other party lose face, or making threats. These tactics are likely to backfire and damage the relationship.
The Philippines and Thailand recently signed a bilateral agreement to settle their trade dispute over customs valuation procedures for imported cigarettes. The agreement establishes a bilateral consultative mechanism for their respective government authorities to engage in regular discussions and build confidence that supports efforts to reach a comprehensive settlement of the dispute.
Mediation
In Thailand, mediation is an alternative to taking a dispute all the way to trial. Mediation is a process in which parties come together with a neutral third party to discuss their issues and work on a solution that will meet all of their needs.
The mediator can help both sides understand each other’s perspectives, and how those issues may affect broader commercial interests. In addition, the mediator can help both sides find common ground and compromise on some of the more sensitive issues in a dispute.
The Intellectual Property and International Trade Court is a crucial institution for safeguarding intellectual property rights and resolving international trade disputes. The court’s specialized focus and expertise contribute to an environment that encourages innovation, protects creators, and facilitates business opportunities with international partners. It also acts as a deterrent against intellectual property infringement and unfair trade practices. It also helps businesses build confidence in Thailand as a global trade partner.