The Federal International Arbitration Act is the portion of (Chapter 2) of Title 9 of the United States Code adopting the New York Convention as a part of United States law. Chapter 1 occasionally referred to in the statutes below is the domestic part of the Federal Arbitration Act.  The New York Convention is an international treaty pursuant to which arbitration awards made in one country may be enforced in another, as long as both countries adhere to the Convention.  Many nations do, and those that do not often adhere to other treaties providing for international recognition of foreign arbitration awards.  Law and practice regarding the international enforcement of arbitration awards is beyond the scope of this web page, other than that international enforcement of arbitration awards and judgments is usually a very expensive proposition.  If one believes that an arbitration award may require international enforcement, one should consult lawyers having skill in this area before the arbitration is commenced.

    Because court judgments (including court judgments after court annexed arbitration) are often given limited recognition in foreign countries, if one is entering into a business transaction where the possibility of international enforcement is more than a remote possibility, serious consideration should be given to incorporating provisions requiring arbitration into the contract, drafted with a mind to how the award will be enforced in all likely places where enforcement may be sought.

   The Federal International Arbitration Act does not govern the conduct of arbitrations in the United States that may be enforced in foreign countries.  Again, if enforcement of an arbitration award in a foreign country is contemplated, one should remember that enforcement will be subject to the laws of that country - even if that country has adopted the New York Convention - and that the arbitration should be conducted with an eye to the likely concerns of the courts in the country where the award is to be enforced.

FEDERAL INTERNATIONAL ARBITRATION ACT

Section 201. Enforcement of Convention The Convention on the Recognition and Enforcement of Foreign Arbitral Awards of June 10, 1958, shall be enforced in United States courts in accordance with this chapter.

Section 202. Agreement or award falling under the Convention An arbitration agreement or arbitral award arising out of a legal relationship, whether contractual or not, which is considered as commercial, including a transaction, contract, or agreement described in section 2 of this title, falls under the Convention. An agreement or award arising out of such a relationship which is entirely between citizens of the United States shall be deemed not to fall under the Convention unless that relationship involves property located abroad, envisages performance or enforcement abroad, or has some other reasonable relation with one or more foreign states. For the purpose of this section a corporation is a citizen of the United States if it is incorporated or has its principal place of business in the United States.

Section 203. Jurisdiction; amount in controversy An action or proceeding falling under the Convention shall be deemed to arise under the laws and treaties of the United States. The district courts of the United States (including the courts enumerated in section 460 of Title 28) shall have original jurisdiction over such an action or proceeding, regardless of the amount in controversy.

Section 204. Venue An action or proceeding over which the district courts have jurisdiction pursuant to section 203 of this title may be brought in any such court in which save for the arbitration agreement an action or proceeding with respect to the controversy between the parties could be brought, or in such court for the district and division which embraces the place designated in the agreement as the place of arbitration if such place is within the United States.

Section 205. Removal of cases from State courts Where the subject matter of an action or proceeding pending in a State court relates to an arbitration agreement or award falling under the Convention, the defendant or the defendants may, at any time before the trial thereof, remove such action or proceeding to the district court of the United States for the district and division embracing the place where the action or proceeding is pending. The procedure for removal of causes otherwise provided by law shall apply, except that the ground for removal provided in this section need not appear on the face of the complaint but may be shown in the petition for removal. For the purposes of Chapter 1 of this title any action or proceeding removed under this section shall be deemed to have been brought in the district court to which it is removed.

Section 206. Order to compel arbitration; appointment of arbitrators A court having jurisdiction under this chapter may direct that arbitration be held in accordance with the agreement at any place therein provided for, whether that place is within or without the United States. Such court may also appoint arbitrators in accordance with the provisions of the agreement.

Section 207. Award of arbitrators; confirmation; jurisdiction; proceeding Chapter 1 applies to actions and proceedings brought under this chapter to the extent that chapter is not in conflict with this chapter or the Convention as ratified by the United States.

Section 208. Chapter 1; residual application Chapter 1 applies to actions and proceedings brought under this chapter to the extent that chapter is not in conflict with this chapter or the Convention as ratified by the United States.