International Arbitration Act, Papua New Guinea

The International Arbitration Act 2024 of Papua New Guinea implements the New York Convention, facilitating the recognition and enforcement of foreign arbitral awards. The new legal framework for international arbitration is based on the UNCITRAL Model Law on International Commercial Arbitration, although with some departures.

The Act generally applies where the seat of arbitration is in Papua New Guinea. However, the provisions relating to the recognition of arbitration agreements and the recognition and enforcement of arbitral awards and interim measures ordered by arbitral tribunals apply irrespective of whether the seat of arbitration is in Papua New Guinea.

Significantly, the Act allows the Papua New Guinea National Court to refer a matter to arbitration "on its own motion," which is a departure from the UNCITRAL Model Law. The Act provides that if a party brings an action before the National Court in a matter that is the subject of an arbitration agreement, the court may, on its own motion, or on the request of a party, stay, or dismiss the action and refer the parties to arbitration, unless it finds that the arbitration agreement is null and void, inoperative or incapable of being performed.