Litigation and arbitration partner Jesse Sherrett contributed to the March 2025 issue of Mealey's® International Arbitration Report. Jesse joined other international arbitration practitioners to share insights on the challenges anticipated for the field in 2025.
In his commentary, Jesse identified the impact of recent political shifts across Western nations and the continuing AI development as key drivers of change. He predicts that new governments implementing policy changes – particularly potential US-led shifts in trade, energy, and foreign policy – will create an environment of change.
Jesse anticipates this leading to:
- Investment Arbitration: An acceleration of waning state commitment to investor protection and potential renegotiation or termination of trade agreements due to economic nationalism. While this might decrease long-term demand, the immediate fallout (like new tariffs) could spur disputes under remaining agreements.
- Commercial Arbitration: Shifting energy transition policies creating risks for alternative energy projects but opportunities for traditional energy, especially given the demand growth from AI and EVs. He foresees a higher risk of contractual disputes in the energy sector and across cross-border transactions impacted by economic nationalism.
Concluding that 2025 promises to be a "tumultuous year," Jesse noted that risks and opportunities will exist for the international arbitration community.
The Mealey's report also featured insights from other practitioners, presenting a range of perspectives on the evolving landscape. Themes and additional challenges highlighted included:
- Enforcement: Challenges in enforcing awards, particularly involving sovereigns, political factors, or bankruptcy issues.
- AI Integration: Balancing AI's efficiency potential against risks (privacy, bias, ethics) and the need for updated rules/oversight.
- Procedural efficiency and costs: Addressing rising costs and the need for institutions/tribunals to improve speed, flexibility, and user-friendliness.
- Mass Arbitration: Navigating procedural complexities and fairness challenges, especially in the US and potential UK developments.
- Geopolitical factors: The impact of geopolitical instability, sanctions, and shifting trade patterns on dispute resolution.
- Seat and arbitrator Selection: Increased focus on carefully selecting the arbitral seat and qualified arbitrators.
Jesse Sherrett's contribution, alongside these diverse perspectives, illustrates the changing environment for international arbitration.
The full commentary is available in the March 2025 issue of Mealey's® International Arbitration Report.