Gafta: A Comprehensive Overview of Arbitration and Mediation Procedures

Arbitration Gafta

Gafta, the Grain and Feed Trade Association, provides a robust arbitration and mediation system to resolve trade disputes efficiently and effectively. This comprehensive guide delves into the details of Gafta arbitration, mediation services, arbitrator qualifications, appointment procedures, and associated fees. With a clear understanding of Gafta's processes, businesses can confidently navigate the complexities of international trade disputes https://fortiorlaw.com/news/gafta-arbitration/. 

Arbitration Services Offered by Gafta

Arbitration Rules and Procedures

Gafta arbitration services are governed by a set of well-defined rules and procedures. These include the Arbitration Rules No. 125 and the Expedited Arbitration Procedure Rules No. 126. The latest version of the No. 125 Arbitration Rules is effective from 1st March 2022, while the Expedited Arbitration Procedure Rules No. 126 are effective from the same date.

The Gafta arbitration process is designed as a two-stage system. The first stage involves a tribunal of three arbitrators or a sole arbitrator, depending on the nature of the dispute. If either party is dissatisfied with the outcome of the first stage, they can appeal the decision. The appeal stage consists of a separate tribunal, ensuring a fair and unbiased review of the case.

Arbitration Fees

The fees for Gafta arbitration services vary depending on the specific procedure, as well as the membership status of the parties involved. Non-member parties are subject to an additional fee, currently set at £1,700 each. The association fees, deposits, and other costs associated with the arbitration process are outlined in the Arbitration 125 Rule fees and Arbitration 126 Expedited Arbitration Procedure Rule fees sections below.

Mediation Services Offered by Gafta

In addition to arbitration services, Gafta also offers mediation as an alternative dispute resolution method. Mediation can be utilized at any stage of the dispute and is particularly useful for negotiating solutions while preserving ongoing trade relationships.

Mediation Rules and Procedures

Gafta's mediation services are governed by the Mediation Rules No. 128, effective from 1st June 2014. These rules outline the process by which parties can engage in mediation and work towards a mutually agreeable resolution.

Gafta Qualified Arbitrators and Mediators

Qualifications and Continuing Professional Development

All arbitrations and mediations under Gafta are conducted by Gafta Qualified Arbitrators and Mediators. To maintain high standards, these professionals must demonstrate a commitment to continuing professional development, ensuring they stay up-to-date on all contractual and arbitral issues.

Appointment of Arbitrators

Qualified arbitrators must have at least ten years of active engagement in the grain and feed trade. This experience, coupled with rigorous training and examinations, ensures that Gafta Arbitrators possess the necessary expertise and commercial aptitude to adjudicate on a wide range of issues.

Arbitration Committee and Transparency

The Arbitration Committee aims to provide transparency regarding the policies and procedures of all aspects of the arbitration services. This includes clarifying the relationships, roles, and responsibilities between Gafta and Arbitrators.

Arbitration 125 Rule Fees

The fees for the Arbitration 125 Rule are broken down into several categories:

Non-member fee

Non-member parties are subject to a fee of £1,700 each.

1st Tier (3 member Tribunal and Sole Arbitrator)

Association fees and deposits for the first tier of arbitration vary depending on the claim's date and membership status of the parties involved. Detailed fee structures are available in the reference article provided.

Appeal

Appeal fees and deposits also depend on the date of the appeal and the membership status of the parties involved. Detailed fee structures are available in the reference article provided.

Hourly rate of Appeal Board

The hourly rate for the Appeal Board is £150 per hour for any appeal lodged before 14th January 2020, and £175 per hour for any appeal lodged from 14th January 2020 onwards.

Arbitration 126 Expedited Arbitration Procedure Rule Fees

The fees for the Arbitration 126 Expedited Arbitration Procedure are as follows:

  • Arbitrator's fee: No cap
  • Association fee: £700
  • Non-member fee: £1,700 each

Deposits for the expedited procedure vary depending on the membership status of the parties involved:

  • £8,000 when both parties are members
  • £9,700 when one party is a non-member
  • £11,400 when both parties are non-members

Section 57 Applications

Section 57 applications may be subject to additional charges.

Conclusion

Gafta's arbitration and mediation services play a crucial role in resolving disputes in the grain and feed trade industry. By understanding the rules, procedures, and fees associated with these services, businesses can make informed decisions about how to navigate complex trade disputes. With a commitment to transparency, continuing professional development, and high standards, Gafta ensures that its arbitration and mediation services are both fair and effective.