Originally from Arbitration Law and Practice in Asia - Second Edition

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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 As a result, the Foreign Trade Arbitration Law soon became outdated as it did not reflect the modern principles of international commercial arbitration.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 Association).