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

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I.  INTRODUCTION

A. History and Current Status of the Law and Arbitration

1. Overview

Luxembourg offers many advantages as an arbitration location. Arbitration has a long history in Luxembourg dating back to the incorporation of articles governing arbitration into the code of civil procedure in 1806. In recent years, the country has actively developed and promoted arbitration, notably through a significant reform of Luxembourg arbitration law currently pending before the Luxembourg Parliament.

Articles 1224 to 1251 of the New Code of Civil Procedure (NCCP) currently govern arbitration in Luxembourg and apply to both domestic and international arbitration. Additional provisions relating to arbitration can be found in special laws, such as the Consumer Code or the modified Law of 27 July 1997 on insurance contracts. Luxembourg arbitration law is not based on the UNCITRAL Model Law.

Luxembourg is a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) of 10 June 1958. Luxembourg ratified the New York Convention on 9 September 1983 and issued a declaration of reciprocity in this respect. It is also a party to the European Convention on International Commercial Arbitration of 21 April 1961, the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention) and more than 100 bilateral investment treaties.

2. Proposed Reform of Luxembourg Arbitration Law

Government Bill No. 7671 would modify Articles 1224 to 1251 of the New Code of Civil Procedure and is expected to be passed by Parliament in the near future with the objective of adapting the existing legal framework to international standards which are more amenable to arbitration.