Domestic vs International Arbitration Clause under French Law

Domestic vs International Arbitration in France: understanding the nuances

Welcome back to the continuation of our exploration into Arbitration in France. 

In the First Part, we discussed the historical significance and the evolving affordability of Arbitration. 

We also highlighted the critical role of the Arbitration Clause and delved with the Essential Elements of the Arbitration clause under French Law.

Now, we delve deeper into the key distinctions between Domestic and International Arbitration under French law. This segment will provide a clearer understanding of their respective legal frameworks, essential for anyone navigating or considering arbitration in France. Join us as we discover these nuanced differences and their implications.

I) In Domestic Arbitration (French Law)

An important distinction must be drawn between Domestic Arbitration (Arbitrage Interne) and International Arbitration (Arbitrage International). 

Domestic Arbitration is any dispute where there is no cross-boarder element. The parties are established in the same country and/or the disputed transaction is not cross-boarder from a financial point of view, namely the transaction does not involve payments across different countries.

Looking to start a business in France? Don't navigate the legal maze alone

We would be happy to have a free initial consultation to discuss your needs.

Contact Us

II) In International Arbitration (French Law)

By contrast, the definition of International Arbitration applies where the parties of a dispute are established in different countries and/or the financial flows between them are cross-boarder.

Article 1504 of the French Civil Procedure Code sets out that  « Arbitration is international when it involves the interests of international trade “.

Therefore, the definition of International Arbitration under French Law is essentially economical since it relates to the cross-boarder character of the disputed business transaction and does not relate to non-economical elements such as the nationality of the parties, the law applicable to the merits or the seat of the Arbitration. 

The distinction between Domestic and International Arbitration is important since, as we saw in the previous article, the essential elements of the Arbitration clause as well as the applicable rules vary according to the International or Domestic nature of the dispute to be arbitrated.

This concludes the Second Part of our in-depth analysis on Arbitration in France. If you missed the first part you can read it now here. In next article we will delve into the a few, interesting details about the recommended contents of an Arbitration Clause.

Follow our LinkedIn page AClegal at

The opinion expressed in this article is for informational purposes only.

This article does not constitute legal advice.

In addition, it is important to remind that each client’s tax issue is different because each client’s personal situation is different.

Should you have a similar tax issue, please contact us for an initial discussion of your case.

AC Legal
International Tax Counsel Legal And Tax Advice For International Business
VAT Strategy And Corporate Restructuring

Do not hesitate to contact us in order to clarify your situation on these issues; we will be happy to help you.