15 ASIAN LEGAL BUSINESS – OCTOBER 2023 WWW.LEGALBUSINESSONLINE.COM CONSIDERATIONS REQUIRED Murakawa suggests that the government should consider providing further guidelines on third-party funding, which he says is most closely related to the financial interests of Japanese parties. However, Tony Andriotis, a partner at DLA Piper based in Tokyo, does not think it is an issue. “The issue of concern relates to Japan’s money lending/ banking laws. These laws are likely why funders are not setting up shop in Japan. Despite this, however, I do not see an issue with funding being used. It is a matter of structuring the funding, not a matter of purported legal ethics, as it is in other jurisdictions,” notes Andriotis. Instead, Andriotis believes more substantive and elaborate government support is needed to help Japan achieve its desired status as Asia’s premier international arbitration hub. “Though Japan is moving in the right direction in creating (and maintaining) a pro-arbitration ecosystem, it is way behind on marketing,” he says. “The government should learn from its neighbours in pushing for a cooperative arbitration community. As things stand now, Japan has no proper unifying arbitration event, which unites multiple stakeholders, such as government ministries, local and international institutions, and law firms. The Japanese government should move to support an annual event such as Hong Kong Arbitration Week or the Seoul Arbitration Festival.” Andriotis cites the ill-fated Japan International Dispute Resolution Centre, which was opened and folded at the height of the pandemic, as an “unfortunate misstep” to Japan’s campaign to bolster its arbitration-friendly image. “Serious considerations should be given to re-opening a governmentfunded and supported centre that will offer facilities suitable for arbitration at a reasonable cost. Without such facilities, international parties to a dispute will likely have few choices but to conduct the arbitration at a hotel or conference centre that is not well suited for an arbitration,” adds Andriotis. Ohara and Quek of Nagashima Ohno & Tsunematsu note that the caseload of the Japan Commercial Arbitration Association remains fairly low at around 20 cases a year. “The Japanese courts have consistently been enforcing arbitration agreements and arbitral awards, but this is not widely known as the judgments of the courts are published in Japanese. It would be useful if English summaries of court decisions relating to arbitration could be published in order to increase global awareness,” they say. Lawyers urge the government to boost the level of support for arbitration to match that of other arbitration hubs in Asia, such as Hong Kong and Singapore. “It has taken only about a decade or two for some seats, such as Singapore, to essentially transform from zero to hero. Much of that transformation is directly due to government support,” says Andriotis. “As Japan, despite its efforts at liberalising its arbitration and legal practice laws, is not quite where an economy of its size and prestige should be, continued concrete efforts by the government are necessary in order to build a reputation in the arbitration space that is commensurate to its strength in the global economy,” he adds. The MoJ’s Miyazaki says Japan does not intend to compete with Singapore or Hong Kong but instead focuses on enhancing international partnerships. The government is also taking steps to deepen collaborations with a wider range of stakeholders, encompassing private industries and foreign arbitration institutions. “Having a robust dispute resolution framework is an essential part to promote fundamental values such as the rule of law,” says Miyazaki. “It is not a competition.” Image: Takashi Images/Shutterstock.com ARBITRATION
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