Originally from: Stockholm International Arbitration Review

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ESTONIA HAS TAKEN A NEW STEP IN (INTERNATIONAL) COMMERCIAL ARBITRATION

By Pirkka-Marja Põldvere

Introduction

On 20 April 2005, Estonia adopted a new Code of Civil Procedure (hereinafter "CCP"), which, inter alia, includes a chapter on arbitration. The  CCP entered into force on 1 January 2006 when its chapter on arbitration replaced the Act of the Republic of Estonia on the Court of Arbitration of the Estonian Chamber of Commerce and Industry.

In short, the new arbitration law in Estonia is based on the 1985 UNCITRAL Model Law on International Commercial Arbitration (hereinafter "Model Law"). However, there are also certain differences. This article gives an overview of the new arbitration law in Estonia. First, the previous arbitration law of Estonia is briefly described. Second, the author outlines the sources for the new arbitration provisions. Third, the main characteristics of the new Estonian provisions of arbitration are discussed, followed by the new law’s differences from the Model Law. The article concludes by describing the transitional provisions of the new CCP.

Short Description of the Arbitration Law in Estonia in Effect Before Adopting the New Code of Civil Procedure

Until the adoption of the new CCP, the regulation of (international) commercial arbitration in Estonia was rather inadequate. The previous CCP included only a few provisions on arbitration, namely the right to agree on solving disputes by arbitration, as well as certain rules on the recognition of arbitral awards.