New Arbitration Act: legislative reform to strengthen Finland's position in international dispute resolution

The Government proposes that the current legislation on arbitration be reformed to correspond to the best international practices. In addition, the Finnish terminology of the act would be made gender neutral. The objective is to improve the competitiveness of arbitration in Finland and to reform the act.

The new Arbitration Act would be based on the Model Law of the United Nations Commission on International Trade Law (UNCITRAL). Digitalisation and international development in the field of arbitration would also be taken into account in the new act. The aim is to make the Finnish act better known internationally and thus make Finland a more attractive place for international arbitral proceedings. 
  
To ensure adequate expertise, court proceedings related to arbitration matters would be centralised to Helsinki Court of Appeal and Western Uusimaa District Court. 
 
Arbitration is an alternative dispute resolution method that can be used instead of judicial proceedings in court. In particular, it is used for settling disputes between businesses, and the costs of the proceedings are borne by the parties themselves. 
 
The new Arbitration Act is scheduled to enter into force in spring 2027 approximately six months after the bill has been passed and approved. 
 
Government decisions  
 
Inquiries:  
Kirsi Pulkkinen, Senior Ministerial Adviser, tel. +358 295 150 438, [email protected]