Increased Certainty For Foreign Investment In Myanmar Following Accession To The New York Convention

Myanmar's decision to accede to the New York Convention is a positive sign for foreign investors and resources companies contemplating doing business in the State. Parties to arbitration agreements with entities in Myanmar will potentially be able to enforce any award obtained as if it were a judgment of a court in Myanmar. However, it is important to keep in mind that Myanmar's accession to the New York Convention is just the first step in providing a certain and consistent dispute resolution framework for foreign investors.

Myanmar is the most recent signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), having formally acceded on16 April 2013. The New York Convention facilitates the recognition and enforcement of foreign arbitral awards by requiring contracting states to enforce valid arbitration agreements and arbitral awards.

Myanmar is rich in gas, oil and minerals with approximately 50m barrels of proven oil reserves and 280 billion cubic metres of gas. Its decision to accede to the New York Convention is a positive sign for foreign investors and resources companies contemplating doing business in the State. It effectively means that a party to an arbitration agreement with an entity based in Myanmar will be able to enforce any award obtained as if it were a judgment of a court in Myanmar. Before the accession to the New York Convention a party with a claim against an entity incorporated in Myanmar, or with...