Electronic Proceedings - United Nations Office for Outer Space Affairs

A unique feature of arbitrating under the auspices of a treaty-based institution is that theprivate party has the confidence of knowing that it is getting all the benefits of arbitration,while the State party is less likely to refuse to arbitrate under the auspices of an institution itwas instrumental in creating.ConclusionAny dispute settlement mechanism will have to be acceptable to both States and privateenterprises. Adjudication and arbitration are the obvious choices to ensure a bindingsettlement. It is expected that State and private enterprises engaged in space activity will turnto the established rules and institutions of arbitration that are being used in most other fieldsof commercial activity. 27 While disputes between private parties have been all but taken careof by commercial arbitration institutions, there still remains a gap in relation to disputesbetween States and non-States, which can be filled quite readily by the PCA and other suchmechanisms. 28At this stage in the development of space law, it is important to develop case law fromcourts and arbitration tribunals in order to arrive at more definite interpretations of thecomplex relationships between the various space conventions, States and private enterprises. 29As the volume of activity in outer space increases, institutions, laws and procedures forthe resolution of disputes will have to address the unique aspects of this field. 30 A delicatebalance will have to be struck in order for the world to continue to benefit from the vasttechnical advancements of commercial enterprise while at the same time taking care topreserve outer space as “the common heritage of mankind.”24 International Centre for Settlement of Investment Disputes, established under the Convention for theSettlement of Investment Disputes Between States and Other States. October 14, 1966.25 Established by The Hague Peace Conference, July 31 1899, The Hague, Netherlands. ReviewedOctober 1907, The Hague, Netherlands.26 Hans Jonkman, The Role of the Permanent Court of Arbitration in International Dispute Resolution,Centennial Celebration of the Permanent Court of Arbitration.27 K.H. Bocksteigel, Arbitration Of Disputes Regarding Space Activities, Proceedings of the 36 thColloquium on the Law of Outer Space 136 (Amer. Inst. Of Aeronautics and Astronautics, 1993).2828 The United Nations Secretary-General Kofi Annan recognized the relevance of the PCA when heencouraged States, international organizations and private parties to utilise the services of the PCA,stating that the PCA would help fill the gaps concerning arbitrations involving private parties andStates. See Kofi Annan, Foreword to the BASIC DOCUMENTS OF THE PERMANENT COURT OFARBITRATION (1998) available at (http://www.pca-cpa.org/BD/foreword.htm).29 Peter van Fenema, The Unidroit Space Protocol, The Concept Of Launching State, Space TrafficManagement and the Delimitation Of Outer Space, 18 J. AIR & SPACE L. 278, (2002).30 K.H. Bocksteigel, Space Law-Changes And Expectations At The Turn To Commercial SpaceActivities, 8 Forum Internationale 12, ( Kluwer Publishers 1987).7