Permanent Court of Arbitration

The Permanent Court of Arbitration is an intergovernmental organisation dedicated to the facilitation of international arbitration and other peaceful methods of resolving disputes between states, state-controlled entities, international organisations, and private parties. Headquartered in the Peace Palace in The Hague, it operates as the world’s oldest institution for formalised inter-state dispute settlement. Unlike a judicial court with permanent judges, it provides administrative and logistical support to arbitral tribunals constituted specifically for each case.

Historical Background

The Court was established by the 1899 Hague Convention for the Pacific Settlement of International Disputes, adopted at the first Hague Peace Conference convened by Emperor Nicholas II of Russia. The principal aim of that Conference was to identify practical methods for ensuring lasting peace and curbing the expansion of armaments. A second Conference in 1907 revised and expanded the original Convention, further refining procedures for arbitration.
Construction of the Peace Palace, which opened in 1913, consolidated the institution’s physical presence and became home to the Permanent Court of Arbitration. Over time the PCA grew in scope, and today its membership comprises 125 Contracting Parties. Although it is not part of the United Nations system, it has held observer status in the UN General Assembly since 1993.

Organisational Structure

The PCA’s structure centres on three main organs conceived in the founding conventions.

• The Administrative Council consists of the diplomatic representatives of all Contracting Parties accredited to the Netherlands. Chaired by the Dutch Minister of Foreign Affairs, the Council oversees the organisation’s general direction, financial matters, and the work of the Secretariat.
• The International Bureau, functioning as the Secretariat, is led by the Secretary-General. It provides linguistic, administrative, legal, and research support to arbitral tribunals and other dispute-resolution mechanisms administered by the PCA.
• The Members of the Court are designated by each Contracting Party, up to four from each state, for renewable six-year terms. They must demonstrate recognised competence in international law and high moral standing. These individuals constitute a panel from which arbitrators may be chosen and also act as national groups in the nomination of candidates for the International Court of Justice. Members of the Court, alongside ICJ judges, are also eligible to nominate candidates for the Nobel Peace Prize.

Although tribunal parties may select arbitrators from the panel, they are not obliged to do so. The PCA is sometimes confused with the International Court of Justice because both institutions are housed in the Peace Palace, but each performs distinct functions.

Arbitral Procedure

Arbitral proceedings under PCA auspices are governed largely by the procedural framework set out in the Hague Conventions. The basic steps begin with the submission of a compromis, a formal agreement outlining the subject of the dispute and defining the competence of the tribunal. Proceedings proceed through a written phase of pleadings followed by oral hearings.
Once hearings conclude, arbitrators deliberate privately and reach a decision by simple majority. The resulting award includes the reasoning of the tribunal and any dissenting opinions. Awards are pronounced in a public session attended by representatives of the parties and are binding, with no avenue for appeal provided under the Hague Conventions.
Procedural rules were amended in 1907 with the introduction of summary procedures intended for simpler cases. Elements of these rules later influenced the development of procedures for the Permanent Court of International Justice.

Jurisdiction and Functions

The PCA administers disputes of various kinds. Jurisdiction may arise under the founding conventions, under bilateral or multilateral treaties, or under arbitration agreements referring disputes to PCA services.
A significant additional role of the Secretary-General is acting as an appointing authority, particularly in proceedings under the UNCITRAL Arbitration Rules. When parties fail to appoint arbitrators or when arbitrators cannot agree on a presiding arbitrator, the Secretary-General may be asked to make the necessary appointments. Between 2011 and 2015, more than two hundred such requests were recorded, reflecting the importance of this function.
The PCA also provides registry services for arbitrations established under the United Nations Convention on the Law of the Sea (UNCLOS). States party to UNCLOS may elect among several dispute-resolution mechanisms, and where elections differ, arbitration under Annex VII becomes the default option. The PCA has administered nearly all Annex VII maritime delimitation and sovereignty cases commenced since the Convention entered into force.
In addition to inter-state disputes, the PCA increasingly supports investor–state arbitrations pursuant to free-trade agreements containing investor–state dispute settlement provisions. Its administrative framework allows it to serve both as appointing authority and as registry for these complex proceedings.

Budget and Financial Arrangements

The PCA’s budget is funded through contributions from Contracting Parties and income derived from the cases it administers. Contributions are assessed using the scale of assessments employed by the Universal Postal Union. Parties involved in arbitration typically bear the costs of the tribunal itself, including arbitrators’ fees and registry support, though general organisational overheads are not charged to them. Fixed fees apply when the Secretary-General acts purely as appointing authority.
Budgetary figures vary, but for the period 2007–2008 the organisation’s budget was recorded at approximately €18 million, reflecting its growing caseload and institutional activity.

Selected Roles and Example Cases

The PCA has administered numerous historically significant cases. Early examples include the Pious Fund of the Californias arbitration between the United States and Mexico in 1902 and the North Atlantic Coast Fisheries case between the United States and the United Kingdom in 1910. The PCA also administered the 1911 case concerning the detention of Vinayak Damodar Savarkar between France and Great Britain.
Its involvement in modern disputes covers a diverse range of issues, including maritime boundaries, sovereignty claims, investment disputes, natural resource rights, and environmental matters.

Contemporary Administration

The Secretary-General plays a central role in the institution’s operation and external relations. Since June 2022 this post has been held by Marcin Czepelak, elected by the Administrative Council for a five-year term. The succession of Secretaries-General since 1899 reflects the institutional continuity and administrative evolution of the PCA.