Legal framework is crucial for one country to position itself as arbitration-friendly for the investors and businesses. Current legal framework for arbitration in BiH was adopted as an integral part (section) of the law that governs civil procedure. The arbitration framework does not reflect the modern tendencies in international commercial arbitration and does not address the needs of modern businesses in the alternative dispute resolution. Having a strong, contemporary legal framework for commercial arbitration in place would help the business community feel more comfortable with the idea of arbitrating their dispute in BiH.
While the adoption of the new law on arbitration has been recommended in the EU report titled: Assessment of Alternative Dispute Resolution/Mediation in Bosnia and Herzegovina, there has been no official initiative in this regard thus far.
The Association advocates for an adoption of the new law on arbitration on entity or state level, based on the UNICTRAL Model Law. At the time being, the efforts are focused on initiating an inclusive discussion between the local stakeholders on the need and form of such law. In order to facilitate any further work, the Association has translated the UNCITRAL Model Law (with 2006 amendments) which is available here.