Application of Alternative Dispute Resolution (ADR) in International Economic Law

Alternative Dispute Settlement (ADR) phrase is a common term that refers to peaceful and out-of-court dispute settlement. In this way, the parties to the dispute, instead of resorting to the courts, settle their claims by a third party or in a manner they consider appropriate. The most important kinds of this method are: arbitration, negotiation, mediation, conciliation, Amiable Composition, and combinatorial methods. On the other hand, international economic law covers a wide range of areas including financial and banking law, commerce and foreign investment law. The key question of this study is what is the notion of alternative methods? And how we can effective and efficiently the resolving disputes arising from economic law? This study uses a descriptive-analytical method and its results show that the origin of international economic disputes is mainly due to the interpretation or performance of commercial contracts and banking and financial agreements, disputes arising out of expropriation, or deny of services. Because of international economic law subjects are diverse and even include natural persons, disputes are very complex; the parties to the disputes are usually reluctant to refer disputes to state courts and judicial authorities, thus using alternative means to resolve their disputes.