Problem of Costs in International Commercial Arbitrations

Settlement of international commercial disputes requires pay costs that without them, the arbitration is impossible. Although compared with judicial proceedings, arbitration disputes generally less costly, however, in some disputes in terms of the amount requested and the extent of the dispute, perhaps the costs of arbitration is several times more than litigation. What is important for the parties to resolve disputes through this mechanism are economically feasible to use this method is preferred. For this purpose it is necessary to defined all kind of costs and its assessment be regulated, until it is predictable for each of the parties. In this study, we have tried to explain the concept and types of arbitration costs, the allocation of costs between the parties and the important question to be answered, that if one of the parties refuses to pay his share of the cost, what will be the fate of arbitration?