Disputes are settled through out-of-court arbitration, which involves parties choosing an arbitrator or panel who reviews evidence and listens to arguments before making a binding decision. This route to Thailand dispute resolution is faster and generally less expensive than taking a case through the court system.
Despite the cost, Chanintr encourages developing countries to pursue action if they feel they have strong grounds for doing so. It can often be beneficial for their trade interests in the long run, even if they lose their case at the WTO.
Courts
There are a variety of legal proceedings available to resolve a trade dispute. Courts can issue injunctions, make rulings on intellectual property rights, enforce debt collection and decide a range of other business-related matters.
In some cases, courts may encourage the parties to settle their disputes through a process of court-supervised mediation. This can be a more efficient and less costly route to resolution than litigation.
Thailand’s judicial system has three levels: General Courts of First Instance, the Central and nine regional courts of appeal and the Supreme Court (Dika). The Supreme Court hears appeals from lower courts on points of law or facts.
The court system in Thailand is complex, and the process of resolving a dispute can take up to one year on average. This can be stressful and time consuming for the disputing parties. It is often cheaper and faster to resolve a trade dispute out-of-court. There are many private mechanisms that can be used to resolve a dispute, including arbitration.
Mediation
Disagreements and conflicts are unavoidable in the business world, particularly when dealing with commercial transactions. This is why it’s essential for businesses to understand the different dispute resolution mechanisms available in Thailand, which can help mitigate risks and ensure success.
Mediation is an important alternative to litigation for resolving trade disputes in Thailand. DFDL can provide guidance and support on this method, including court-annexed mediation. This process allows parties to settle a dispute through a settlement agreement that the judge will endorse and enforce.
Previously, pre-litigation mediation could only be conducted after a lawsuit was filed, which meant months could pass before the mediation hearing took place. However, some courts are now requiring mediation before witness hearings in civil cases. While this is a step in the right direction, more needs to be done to encourage mediation for commercial matters. Ultimately, a robust dispute resolution system will boost investor confidence in the country and enhance its international reputation as a fair trading partner.
Intellectual Property and International Trade Court
Central Intellectual Property and International Trade Court is a specialized court that adjudicates intellectual property cases such as patent prosecution, trademark infringement, copyright infringement and trade secret violations in Thailand. Its establishment and specialized focus on intellectual property issues highlights Thailand’s commitment to promoting innovation and protecting the rights of creators.
This is the first E-court in Thailand and allows lawyers representing parties to communicate with each other via EDI system after filing the plaint. Parties can also file documents in English and use computerized records as evidence to support their case.
An increasing number of disputes in Thailand are settled by arbitration rather than through litigation. This is because arbitration is more cost effective and usually much quicker than obtaining a judgment in a regular court. Arbitration can also be more flexible and confidential than a trial, and the parties can choose how many arbitrators are involved. They can also set the rules and evidence to be used.
Negotiation
As a dynamic participant in international trade, Thailand must balance the needs of its domestic economy and international trading partners. Disagreements over tariffs, quotas and other trade-related issues can generate tension between countries.
Negotiation can be an effective way to resolve a trade dispute in Thailand, particularly for small claims. This form of dispute resolution can be more cost-effective than litigation and can also provide a quicker solution. However, companies should be aware that negotiations in Thailand are relationship-oriented and should use caution when attempting to make aggressive openings or threaten action.
In DS1 with the Philippines, for example, Thailand and the Philippines engaged in bilateral discussions for years before filing a request to the DSB. These discussions allowed both sides to build trust and a common understanding of their respective positions, leading ultimately to the parties’ 7 June 2022 Understanding on Agreed Procedures Towards a Comprehensive Settlement of the Dispute on Cigarettes. This agreement also established a consultative mechanism for the two countries to discuss issues regarding their customs valuation procedures.
