Thailand amends Arbitration Act, paving way for foreign arbitrators

BANGKOK - Thailand is introducing new rules for the work of both foreign arbitrators and representatives in arbitration proceedings in Thailand, freeing up current restrictive regulations.

Lawyers Baker McKenzie, in a Client Note, say that, although attempts have been made for many years to portray Thailand as a competitive regional hub of international arbitration, legal and regulatory obstacles have largely undermined the realisation of this claim.

"In particular, Thai law precluded foreign representatives from acting in arbitration proceedings governed by Thai law and conducted in Thailand, and foreign arbitrators appointed to adjudicate arbitration proceedings in Thailand were required to go through the laborious process of obtaining a work permit to do so," the Clint Note says. 

On January 25, the Secretary of the Thai Cabinet issued a letter confirming a National Legislative Assembly Bill amending the Thai Arbitration Act. The Bill is designed to improve the convenience of conducting arbitration proceedings in Thailand. 
B&M says that, Although it remains to be seen how the Amendment will be practically implemented, the new law signals a major thawing of restrictions on foreigners participating in arbitration proceedings in Thailand and should serve to achieve the long-held objective of making Thailand an attractive location for international arbitration proceedings for both Thai and foreign parties.

The Amendment is expected to come into force in coming months following Royal assent.  www.bakermckenzie.com (ATI).