What is Gafta Arbitration?

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Gafta Arbitration is a dispute resolution procedure that Gafta members can use when they have a disagreement or dispute with another Gafta member or an agent https://fortiorlaw.com/news/gafta-arbitration/. A Gafta arbitration is a private, confidential and neutral process for resolving disputes between Gafta members and third parties. It is not designed as an alternative to standard court proceedings, but rather as a useful supplement in certain circumstances. It is also not intended to be a cost-effective way of dealing with minor disagreements; it will usually be more expensive than other options such as mediation or negotiation, where appropriate. Promoting fairness and trust within the international business community is one of the key objectives of the Global Advertising Standard Authority (GaSA). The standard has been updated in April 2018 to include an arbitration clause.

What Is the Purpose of Gafta Arbitration?

In essence, arbitration is a private court proceeding in which the parties agree that they will be bound by the arbitrator’s decision. The arbitrator is normally a lawyer or other legal professional who is not a judge but has special expertise in the relevant field. He or she is normally appointed by the parties themselves, and proceedings take place in private. The arbitrator’s decision is usually final and binding on the parties, although there may be an option to appeal against it in some circumstances. The primary goal of arbitration is to bring finality and certainty to commercial disputes by providing a mechanism for the parties to choose an independent third party who hears evidence from both sides, weighs the evidence and then makes a binding decision which all parties must then accept. Arbitration is often a more informal process than a conventional court proceeding, and can therefore be cheaper and more flexible.

What is the Purpose of the Arbitration Clause?

The arbitration clause is intended to encourage members to resolve their disputes without the need for full court proceedings. It is hoped that the arbitration clause will provide a more efficient and cost-effective mechanism for resolving disputes than the courts, and will help members avoid the uncertainty and costs associated with litigation. The use of arbitration can also help to promote consistency in decision-making and provide an opportunity for Gafta members to gain experience in a less formal dispute resolution setting. The arbitration clause is designed to provide a quick and cost-effective alternative to court proceedings, particularly in cases involving relatively low values, and to help maintain good relations and trust between members.

Who Can Participate in a Gafta Arbitration?

Gafta members can use arbitration to resolve disputes with other Gafta members, and with agents of Gafta members who are also listed as Gafta members. If the dispute involves parties who are not Gafta members, the arbitration clause does not apply, and the parties must instead rely on the courts for dispute resolution.

How Does a Gafta Arbitration Work?

The Gafta Arbitration Procedure sets out the steps that parties to an arbitration must follow, and is available as a downloadable form on the Gafta website. The parties must first try to resolve the dispute themselves, either by negotiation or mediation and should try to do this as early as possible so that they have a better chance of finding an appropriate solution. If the dispute is not resolved, the parties must then submit the dispute to the Gafta Secretariat for the case to be referred to arbitration. The arbitrator will then be appointed and will consider the written submissions from the parties, and any evidence and witnesses that are referred to in those submissions. The arbitrator is not bound by any strict rules of procedure. The arbitrator will issue a decision and will also set out the reasons for the decision. The decision is binding on the parties, and the arbitrator is not normally required to give the parties any reasons for the decision.


Disputes can arise at any time and may be about anything from a significant commercial deal to a minor contractual issue. There are many different ways in which these disputes can be resolved, including negotiation, mediation and arbitration. Arbitration is a private, confidential and neutral process for resolving disputes between parties by having an independent third party make a binding decision. This article discusses what arbitration is, the purpose of Gafta arbitration, who can participate in a Gafta arbitration, how a Gafta arbitration works, and the limitations of Gafta arbitration. Nowadays, the business world is more interconnected than ever before, with businesses of all sizes operating across multiple borders and time zones. This means that disputes are more likely than ever before, and it is therefore important that businesses have the knowledge and mechanisms in place to deal with these disputes when they arise.