Experts at a virtual webinar have underlined the need for Alternative Dispute Resolution (ADR) to resolve LC-related international trade disputes.
They stressed specifically on the issues and challenges of resolution of international trade disputes arising out of Letters of Credit (LC) through the use of ADR methods in Bangladesh, especially in the wake of the spread of Covid-19 pandemic worldwide, which has created an unprecedented challenge in our economic life.
Their views came on Saturday at the webinar on “Settlement of Letters of Credit-Related International Trade Disputes through ADR” was organised jointly by Bangladesh International Arbitration Centre (BIAC), the first registered Alternative Dispute Resolution (ADR) institution of Bangladesh and Dhaka Chamber of Commerce & Industry (DCCI), a partner of BIAC and the largest business chamber in Bangladesh.
They also explained how ADR can help resolve disputes between the parties contracting under LC in international trade deals.
With ADR institutions like BIAC in Bangladesh and other institutions existing in the region, the webinar was aimed at suggesting greater transparency on how the ADR processes including arbitration and mediation work and how they can provide relatively inexpensive and quick access to the resolution of disputes arising out of LC, particularly in the developing nations.
President of DCCI Shams Mahmud and also the Managing Director of Shasha Denim Ltd. & Shasha Garments Ltd. in his Welcome Address mentioned that to mitigate the risk profile of businesses institutional ADR processes including arbitration and mediation can be of immense help especially in LC-related international trade disputes.
In his Closing Address, Chief Executive Officer BIAC Muhammad A. (Rumee) Ali said that BIAC, as the only licenced ADR centre of Bangladesh, has arbitration, mediation, and other methods of ADR in their agenda and he emphasised further cooperation with DCCI to help resolve commercial disputes in both domestic and international trade.
An expert panel of speakers comprising eminent business leaders, bankers, lawyers, and ADR specialists from home and abroad addressed issues and impacts of the challenges of LC-related international trade disputes and the way forward through the application of ADR mechanism in this regard.
Business leaders, experts from the legal fraternity, corporate houses, academicians, Arbitrators, Mediators, and ADR specialists of high eminence from home and abroad participated in the largely attended webinar through Zoom transmission. The webinar was moderated by Barrister Shafayat Ullah, Head of Group Legal Affairs, Mutual Trust Bank Ltd.
Vincent O’Brien, Director, International Chamber of Commerce-UAE and Member, Executive Board, ICC Banking Commission, Paris joined the webinar as a panelist. He expressed satisfaction over BIAC’s contribution and continuous efforts in facilitating ADR norms.
Mr. Md. Ahsan-uz Zaman, Managing Director & CEO, Midland Bank Limited narrated his experience of a banker and emphasised incorporation of ADR clause in both local and international LC.
Barrister Sameer Sattar, Advocate, Supreme Court of Bangladesh and Former Director, DCCI viewed the issue from a lawyer’s perspective and shared his experience.
Taking part in the deliberations Khaled Aziz, Managing Director & Chief Operating Officer, Standard Chartered Bank opined that BIAC can play an important role through its established Rules to help resolve disputes arising out of LC, in addition to the processes followed by various forums in Singapore, Paris, and London.
M S Siddiqui, Convenor, DCCI Special Committee on SDG Affairs-2020 gave an insight on existing discrepancies in LC and insisted that there are issues and departures from conditions of commercial contracts which are not suitable to be resolved by the judicial process at the first instance.
Barrister Shahedul Azam, Advocate, Supreme Court of Bangladesh and Member, DCCI took part in the discussion and underscored the need for adequate and proper drafting of an ADR clause in an additional contract outside of the LC which can help prevent trade disputes.
Rubaiya Ehsan Karishma, Counsel, BIAC in her deliberations, shared her experience of handling LC-related disputes from inside BIAC and said that contracting parties tend to lodge complaints to BIAC citing discrepancies in their documents and seek BIAC’s assistance.
M A Akmall Hossain Azad, Director, BIAC also participated in the webinar. The event was live-streamed on BIAC’s FACEBOOK page and LinkedIn.
