BOSNIA & HERZEGOVINA Trends and Developments Contributed by: Miodrag Jevtić, Gecić Law
Introduction The arbitration landscape in Bosnia and Herzegovina remains shaped by its fragmented legal framework, limited institutional use, and growing exposure to investment arbitration. Despite being a party to the New York Convention and having domestic legisla - tion influenced by the UNCITRAL Model Law, Bosnia and Herzegovina continues to experience structural challenges that limit the consistent application and development of arbitration practices. This article provides a comprehensive overview of recent trends and developments in domestic and international arbitration in Bosnia and Herzegovina. It explores the current legal and institutional framework, the role and performance of arbitration institutions, court practice relating to the enforcement and annul - ment of arbitral awards, and the country’s growing involvement in investor-state disputes. The article also addresses the state of arbitration education and com - munity engagement, which are crucial to fostering a sustainable arbitration culture. Use of Domestic Arbitral Institutions in International Disputes Although Bosnia and Herzegovina’s domestic arbitra - tion system remains underutilised in purely internal disputes, domestic arbitral institutions, particularly the Arbitration Court at the Foreign Trade Chamber of Bosnia and Herzegovina (FTC BiH), have, on occasion, served as venues for resolving international commer - cial disputes. These instances typically involve con - tracts between domestic and foreign entities where the parties have agreed to seat the arbitration in Bos - nia and Herzegovina and apply local procedural rules. In this context, the FTC BiH has played a limited but notable role in administering arbitrations with a cross- border element, particularly in sectors such as trade, construction and services. While such cases remain infrequent, their existence points to the latent potential of domestic arbitral institutions to contribute meaning - fully to the international arbitration ecosystem, provid - ed that legal and procedural conditions are conducive. Recent reforms at the FTC BiH, including the adoption of updated arbitration rules in 2025, aim to improve the institution’s accessibility and credibility in both
domestic and international settings. The revised rules have introduced streamlined procedures, modern - ised cost structures, and clearer ethical obligations for arbitrators, aligning more closely with international best practices. These developments are designed to attract more international parties to consider Bos - nia and Herzegovina as a viable arbitration seat and enhance procedural confidence for foreign investors already present in the market. Nevertheless, significant challenges remain. The legal framework governing arbitration is still fragmented across entity-level civil procedure codes, and pro - cedural vulnerabilities persist, such as the ability to terminate arbitration agreements based on minor technicalities. These issues continue to undermine the predictability and neutrality expected by foreign parties when selecting a dispute resolution forum. Despite these limitations, the gradual enhancement of local arbitral institutions may support a broader strat - egy to position Bosnia and Herzegovina as a credible venue for resolving disputes involving foreign par - ties. By reinforcing the competence, efficiency and impartiality of domestic arbitration mechanisms in international matters, the country could strengthen its reputation in the regional arbitration landscape and increase its appeal as a seat of arbitration in the Western Balkans. International Commercial Arbitration: Low Volume, Modest Impact Bosnia and Herzegovina’s participation in interna - tional commercial arbitration remains limited, despite the country’s formal adherence to key international instruments such as the New York Convention and the Energy Charter Treaty. Domestic companies are rarely involved in proceedings before major arbitral institu - tions such as the ICC, LCIA, or VIAC. When they are, it is typically within the context of large-scale cross-bor - der infrastructure or energy projects involving foreign contractors and international financing arrangements. Several structural and practical factors account for this limited engagement. Many Bosnian companies lack the internal legal capacity and financial resources to pursue or defend claims in complex international arbitration proceedings. In addition, there is often
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