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

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I. INTRODUCTION: ARBITRATION IN SERBIA - HISTORY AND INFRASTRUCTURE

A. History and Current Legislation on Arbitration

1. Historical evolution of law relating to arbitration

After almost one hundred years, Serbia has, in 2006, re-emerged as a sovereign state. Following the breakup of the State Union Serbia and Montenegro, it has once again become an independent subject of international law and – for all practical purposes, including the overview of arbitration – a separate jurisdiction. This “resetting” of the statehood coincided with a capital change with respect to legislation governing arbitration, as the new Law on Arbitration entered into force in 2006. However, the history of arbitration in Serbia goes back over 60 years.

Following World War II, Yugoslavia (in its socialist and federative reincarnation) appeared again, occupying a significant spot on the crossroads between East and West. After the 1948 split with the Soviet Union, Yugoslavia positioned itself as a sort of “buffer country” between the two blocs, and has started to slowly adjust its economy, introducing free market elements into the classical socialist command structure. This relative freedom resulted in a flourishing arbitration practice, primarily located in Belgrade, under the auspices of the Foreign Trade Court of Arbitration (FTCA) attached to the Yugoslav Chamber of Commerce in Belgrade. FTCA was established in 1946 and has remained in operation ever since. Following the breakup of Yugoslavia and the disappearance of State Union Serbia and Montenegro, FTCA is currently attached to the Serbian Chamber of Commerce. Since its inception FTCA has handled over 3500 cases and has remained a preferred choice of many Serbian and regional companies. At the same time, former Yugoslav and Serbian companies were not shy of contracting for other institutional arbitrations (primarily opting for ICC and, to a lesser degree for ad hoc arbitrations, usually based in Switzerland). As a result, former Yugoslav and Serbian companies became well acquainted with an arbitral method of dispute resolution and even allowed for specialization among legal professionals.