The Parliament of Mongolia approved the newly revised Mongolian Arbitration law.
Firstly, Mongolian Arbitration law approved in 2003 by parliament closely following the example arbitration law of the UN, however the Mongolian Arbitration law has not been accepted as meeting international standards. Cases are resolved by Arbitration in Mongolia are relatively low with 41 cases in 2014, 70 cases in 2015, and only 58 cases in 2016.
Following UN guidance, the Government of Mongolia set out to revise the Arbitration Law in an effort to increase ability for citizens and companies to resolve disputes outside of the courtroom. Parties will be free to choose arbitration, which is expected to be more efficient in terms of time and costs. It is hoped that cases resolved by respected professional arbitrators will have result in outcomes respected by both parties.
A major improvement in the new arbitration law is setting out the detailed procedures for securing implementation and enforcement of the award.
Interestingly, the law also outlines those individuals who will NOT be allowed to operate an arbitration organization. Under the new law, an arbitration organization may be established by the Mongolian National Chamber of Commerce and Industry, Customer and Trade Unions, but not any state organization or government entity. This regulation will provide a positive effect to transparency of the arbitration organization.
Check the following blog post for more detailed information about the new Mongolian Arbitration Law.