August 16, 2016 01:00 AM NPT
KATHMANDU, Aug 16: President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Pashupati Murarka, have said trade disputes in the SAARC region can be more effectively settled through SAARC Arbitration Council (Sarco).
Speaking at a seminar in Kathmandu on Monday, Murarka said that regional and international trade hurdles can be best solved through Sacro as the primary aim of the council is to facilitate trade and investment by resolving commercial disputes.
FNCCI got affiliation of Sarco on Monday after officials of the two organizations signed a memorandum of understanding (MoU) to this effect.
“In this era of globalization, international trade and intra-regional trade and investment are inevitable, and disputes are part of those trade and investment. As Nepal along with other SAARC nations, except the Maldives, have ratified the New York Convention, 1959, settlements of dispute through Sarco will be more effective,” he added.
Stating that arbitration is being used as a mechanism for dispute settlements as it consumes less time, maintains privacy of the parties, provides prompt and efficient decision, and facilitates win-win situation for both the parties, Murarka said: “Prompt and effective settlement of disputes with less hassles means secured investment for any business community.”
On the occasion, Malik Imran Ahmad, deputy head of Sacro, said that South Asia comparatively has lower investment. “The region had US$ 41 billion worth of Foreign Direct Investment (FDI) in 2014 which is 1.7 percent of FDI flow in the world,” Ahmad said, adding: “Not having an independent mechanism for the investors and traders to resolve their dispute without being subject to the jurisdiction of another state is one of major reason for low trade volumes in the region.”
Similarly, Ahmad also said that lack of a mechanism that could quickly provide a decision or remedy in the event of a dispute is also a contributing factor for limited trade volume.
The daylong seminar also saw presentations on arbitration issues in SAARC region and Nepal by officials of Sarco and Nepal Council of Arbitration (Nepca).