GAFTA Arbitration

Gafta is an international non-profit organization, headquartered in London, that promotes and regulates the global grain and feed trade. The organization was founded in 1878 and currently unites about 3,000 member enterprises from different countries. Gafta's activities include working on the application of international conventions in the field of the environment, food security and transport safety, developing standards for laboratory testing, and assisting in resolving disputes between parties to transactions, more details - https://fortiorlaw.com/news/gafta-arbitration/

The organization has its own rules and procedures for resolving disputes, and Gafta members are required to follow them. According to these rules, the time limit for filing a claim with Gafta depends on what is specified in the contract between the parties. Typically, the time limit for filing a claim cannot exceed two years from the date the dispute arose. Before filing a claim, the parties must present claims against each other, and only if an agreement cannot be reached can Gafta arbitration be applied.

The Gafta arbitration process may involve several steps and is governed by rules, including Gafta 125, which is the most commonly used. Here are the main steps in the Gafta 125 arbitration process:

Appointment of Arbitrators: The parties must first appoint arbitrators to resolve the dispute. This is usually done by agreement between the parties.

Filing a claim: The plaintiff files a claim with the Gafta Arbitration Court. This claim may include details of the dispute, claims and evidence.

Posting a bond: Gafta requires the plaintiff to post a bond to secure payment of the costs of arbitration. This deposit may be returned once the dispute is resolved.

Defendant's Response: After receiving the complaint, the defendant has 28 days to prepare a response to the complaint.

Written Exchanges: The parties then have the opportunity to exchange written explanations and arguments within a specified period. Typically, the plaintiff has 21 days to respond to the defendant. This process may involve several “rounds” of exchange of explanations if the arbitrators agree to this at the request of the parties.

Secretary of the Association: All correspondence regarding the matter is conducted through the secretary of the Gafta Association. The parties do not have direct contact with the arbitrators.

Oral Hearings: Gafta does not have oral hearings by default. The consideration of the case is based only on the written materials submitted. The parties may request an oral hearing, but it will only be ordered by the arbitral tribunal and in cases where it is truly necessary.

Virtual Oral Hearings: In view of the pandemic, Gafta is providing the opportunity to conduct virtual oral hearings, which can reduce the cost of the process and facilitate participation by the parties.

It should be noted that Gafta arbitration involves specific rules and procedures, and the parties must carefully follow these rules throughout the dispute resolution process.

Fortior Law is an international dispute resolution firm with offices in Switzerland, the Netherlands and Ukraine. The Ukrainian office of this firm, headed by Danil Khristic, specializes in arbitration disputes related to Gafta. This firm provides legal support and advice on dispute resolution in Gafta and other arbitration courts. For more information, you can contact them at the indicated contacts.