Permanent Court of Arbitration

Contracting parties

Parties to the Hague Conventions on the Pacific Settlement of disputes of 1899 (72 parties) and 1907 (102 parties) are automatically parties to the PCA. As 52 are parties to both conventions, the PCA has 129 contracting parties: 127 members of the United Nations, as well as Kosovo and Palestine.

During the second Hague Peace Conference of 1907, French delegate Baron d’Estournelles de Constant proposed that all participating nations contribute to the construction of the PCA's headquarters, the Peace Palace. His suggestion was warmly received, and the PCA's founding states contributed gifts and materials from around the world for the construction of its headquarters.

Functions

PCA tribunals have jurisdiction for disputes based on the PCA founding documents (the Conventions on Pacific Settlement of International Disputes), or based on bilateral and multilateral treaties. While the PCA's initial activity principally concerned the settlement of disputes involving only States, through arbitration and other peaceful means such as conciliation, mediation, and fact-finding, the PCA Founding Conventions of 1899 and 1907 established a flexible framework. Over time, the PCA's Contracting Parties, in keeping with the evolving needs of the international community, have interpreted the Court's mandate to include disputes involving various combinations of States, State entities, international organizations, and private parties.

Appointing authority

The PCA secretary-general furthermore acts as an appointing authority for arbitration.

When problems arise in designating arbitrators for an arbitration under UNCITRAL arbitration rules (e.g. because one of the parties refuses to designate an arbitrator, or when the designated arbitrators are unable to agree on designation of a third arbitrator), the PCA secretary-general may be requested to serve as an appointing authority. This option is also open for other arbitration agreements, in which the secretary-general is designated. Between 2011 and 2015, 257 such requests were submitted. In 2024, the Secretary-General received 51 requests relating to appointing authority services.

Interstate arbitration based on the Hague Convention

Arbitration between two States takes place when two Contracting Parties of the PCA decide to submit a dispute for arbitration to a PCA Tribunal. The Tribunal consists of five arbitrators: two (one of whom may be a national of the party concerned) are selected by each party to the arbitration; these four arbitrators then choose the fifth and presiding arbitrator.

Interstate arbitration based on UNCLOS

The United Nations Convention on the Law of the Sea (UNCLOS) provides for a dispute resolution mechanism regarding maritime boundaries in which member states can choose one of the following:

1. International Tribunal for the Law of the Sea
2. International Court of Justice,
3. arbitral tribunal (constituted in accordance with Annex VII, UNCLOS)
4. a special arbitral tribunal (constituted in accordance with Annex VIII).

If two member states have elected different dispute resolution measures, the third option is to be used. As of 2025, the PCA has administered 14 of the 15 cases initiated by states under Annex VII to the UNCLOS.

Investor–state investment disputes

Many free trade agreements provide for a mechanism to resolve disputes between investors and states through arbitration through so-called investor–state dispute settlement (ISDS) clauses. The PCA may play a role in such proceedings as appointing authority for arbitrators, by use of its arbitration rules or by providing support to the arbitration case.

Conciliation

Conciliation has formed part of the PCA’s activities since 1937, when the Administrative Council formally incorporated conciliation within the PCA’s mandate. The PCA subsequently adopted rules of procedure to facilitate conciliation proceedings. More recently, the PCA supported the conciliation proceedings between Timor-Leste and Australia concerning their maritime boundary in the Timor Sea between 2016 and 2018, which resulted in the conclusion of a maritime boundaries treaty between the parties.

Commissions of Enquiry

The PCA may also assist parties in establishing commissions of inquiry or other fact-finding mechanisms. Historically, such procedures have been used to clarify disputed factual circumstances between States, including in the 1905 Dogger Bank inquiry between Great Britain and Russia conducted under the auspices of the Hague Conventions. Fact-finding mechanisms remain available to parties who wish to establish an objective record of facts that may facilitate the resolution of a dispute.

Procedure

The rules of arbitration procedure are outlined in Articles 30–57 of the Hague Convention of 1899. These rules are an adapted version of pre-existing treaties among the states. They were amended in 1907, with the creation of a summary procedure for simple cases being the most conspicuous change, and were relevant in the 1920s development of rules for the Court of International Justice.

The first act of parties before the PCA is the submission of the so-called "compromisis", stating the issue and the competence of the arbitrator(s). Proceedings are then conducted in two phases: written pleadings and oral discussion. The Court retires once the debate is over to deliberate and conclude the case by a simple majority of votes.

The decision is published as an award, along with any dissenting opinions. Early Court decisions were countersigned by the arbitrators themselves, but, in 1907, that responsibility was passed to the president and secretary (of the PCA). The award is read in a public session in the presence of the agents and lawyers of the parties to the case. The decision is binding on the parties, and there is no mechanism for appeal.

History

In the late 1800s, States were in the midst of an arms race. Faced with economic challenges caused by the military build-up, as well as the risk of a large-scale armed conflict, Tsar Nicholas II of Russia proposed a conference to develop peaceful mechanisms of settling international disputes "with the object of seeking the most objective means of ensuring to all peoples the benefits of a real and lasting peace, and above all, of limiting the progressive development of existing armaments".

In 1899, delegates from 26 States, including a number of countries in Europe, the Ottoman Empire, the United States, Mexico, China, Japan, the then-Kingdom of Siam, and Persia came to Huis Ten Bosch in The Hague for what has come to be known as the First Hague Peace Conference.

The crowning achievement of the Conference was the 1899 Convention for the Pacific Settlement of International Disputes. The Convention recognized arbitration as “the most effective, and at the same time the most equitable means of settling disputes which diplomacy has failed to settle.” To that end, Articles 20 to 29 of the 1899 Convention established the Permanent Court of Arbitration, to be “accessible to all” and “accessible at all times”. The PCA was the first permanent intergovernmental organization to provide a forum for the resolution of international disputes through arbitration and other peaceful means.

After the success of the First Hague Peace Conference, a Second Peace Conference was held in 1907, which led to the 1907 Convention for the Pacific Settlement of International Disputes. The 1907 Convention lightly amended the 1899 Convention without substantially altering it. Notably, the 1907 Conference was a larger affair, with 44 States present. Many of the additional 18 States came from the Republics of Latin America, which joined the 1899 Convention as a block and later joined the 1907 Convention with the other States present.

Today, signing either of the two Founding Convention is sufficient to become a Contracting Party to the PCA, although many Contracting Parties have signed both.

The Hague was chosen for the 1899 and 1907 Conference and then as the seat of the PCA, for four main reasons. First, it is perceived as a neutral capital. Second, The Hague was easily accessible both by land and by sea. Thirdly, The Hague and the Netherlands were already associated with international law, thanks to Hugo Grotius, considered the father of international law, and his treatise On the Law of War and Peace. Last, but not least, Queen Wilhelmina was a distant cousin of Tsar Nicholas II.

List of PCA Secretaries-General

The current Secretary-General of the PCA is Dr. Hab. Marcin Czepelak, who was elected on 14 February 2022 by the PCA Administrative Council for a term of five years (from 1 June 2022 until 31 May 2027).

The below table lists all the Secretaries-General who have served the PCA since its founding.

Budget and fees

The budget of the PCA comes from the contributions of its Contracting Parties and income through arbitration cases. The distribution of the amounts to be paid by the individual Contracting Parties is based on the system in use by the Universal Postal Union.

Parties to arbitration have to pay the expenses of the arbitral tribunal set up to hear the case, including the salary of the arbitrators, registry and administrative functions, but not including overheads of the organization. The costs of arbitration vary from case to case and discussions may be held between the PCA and the parties over fee arrangements.

The fixed costs for action as an appointing authority are €3,000.

Cases

Examples of cases are shown below:

Interstate

• United States of America v. Mexico (Pious Fund of the Californias) (1902)
• United States of America v. United Kingdom (The North Atlantic Coast Fisheries Case) (1910)
• France v. Great Britain (Savarkar Case) (1911)
• United States of America v. The Netherlands (Island of Palmas Case) (1928)
• Eritrea v. Yemen (Hanish Islands conflict) (1999)
• Belgium v. The Netherlands (Iron Rhine case) (2005)
• Croatia v. Slovenia (2017)
• Qatar v. Bahrain (2020)
• Pakistan v. India (Indus Waters Western Rivers Arbitration) (2023)
• Azerbaijan v. Armenia (Energy Charter Treaty Arbitration) (2023)
• Azerbaijan v. Armenia (Bern Convention Arbitration) (2023)
• European Union v. United Kingdom (2024)
• Rwanda v. United Kingdom (Arbitration pursuant to the Asylum Partnership Agreement) (2025)

Interstate: Annex VII UNCLOS

• Barbados v. Trinidad and Tobago (2006)
• Bangladesh v. India (Bay of Bengal Maritime Boundary) (2014)
• Denmark in respect of the Faroe Islands v. European Union (Atlanto-Scandian Herring Arbitration) (2014)
• Mauritius v. United Kingdom (Chagos Marine Protected Area) (2015)
• Philippines v. China (2016)
• Netherlands v. Russia (Greenpeace Arctic Sunrise ship case) (2017)
• Ukraine v. Russia (Coastal State Rights in the Black Sea, Sea of Azov and Kerch Strait) (2017)
• Italy v. India (Enrica Lexie case) (2020)

Investor-state

• Hulley Enterprises Limited (Cyprus), Yukos Universal Limited (Isle of Man) and Veteran Petroleum Limited (Cyprus) v. the Russian Federation (2015)
• Cairn Energy PLC & Cairn UK Holdings Limited v. The Republic of India

Other

• United States v. Iran (Iran-United States Claims Tribunal) in the early 1980s the PCA helped set up the claims tribunal
• Eritrea v. Ethiopia (Eritrea-Ethiopia Claims Commission) (2009) Claims Commission was organized through the PCA
• Sudan v. Sudan People's Liberation Movement (Abyei Arbitration) (2009)