Originally from World Arbitration Reporter (WAR) - 2nd Edition

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MONGOLIA
S. Demberel *
I. INTRODUCTION: ARBITRATION IN MONGOLIA –
HISTORY AND INFRASTRUCTURE
A. History and Current Legislation on Arbitration
1. Historical evolution of law relating to arbitration
The first institutional arbitration in Mongolia was conducted on
2 July 1960. Thereafter, Mongolia made amendments to its
arbitration rules and these came into force from 1975. Such
amendment was brought on by the fact that the Governments of the
member countries of Council for Mutual Economic Aid (COMECON)
adopted the Moscow Convention on the Settlement by Arbitration of
Civil Law Disputes Arising from Relations of Economic, Scientific and
Technical Cooperation of 26 May 1972. Mongolia then established
the Arbitration Court attached to the Chamber of Commerce whose
main purpose was to resolve economic and trade disputes between
countries-partners of the COMECON.
In 1995, the State Ikh Khural adopted the Foreign Trade
Arbitration Law, which became the principal document determining
the rules and procedure of the Arbitration Court. The opening of the
Mongolian market to foreign business caused rapid increase in the
number of the cases resolved by the Court. As a result, the Foreign
Trade Arbitration Law soon became outdated as it did not reflect the
modern principles of international commercial arbitration.
At the time, it was the view of the Chamber of Commerce that
arbitrators should be experienced in international trade and
economy and have advanced theoretical and practical knowledge on
international and civil law. To ensure that only such arbitrators
would receive appointment, only individuals approved by the
Chamber’s Council were included into list of arbitrators.
From 1989 to 2002, a total of 230 cases were submitted and
solved by the Mongolian National Arbitration Center, the largest
dispute amounting to 2.3 million USD (a claim by the Yugoslavian