The core of the legal arbitration system in Japan is the “Arbitration Act” enacted in 2003. As a general rule, the Arbitration Act is applied to arbitration procedures in the case that the seat of arbitration is in Japan (Article 3 of the Arbitration Act). This Act is enacted based upon the “UNCITRAL Model Law on International Commercial Arbitration (Model Law)” which was prepared by the United Nations Commission on International Trade Law (UNCITRAL) and upon which many countries in the world base their laws as a model.

The Arbitration Act of Japan is widely applied whether the case is domestic or international, or civil or commercial (Article 2 of the Arbitration Act).

In 2023, the Arbitration Act had revised(not enforced yet) with such purposes as reflecting the 2006 version of the Model Law. Japan is also a member of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the so-called New York Convention). Japan is also a member country of multilateral treaties such as the ICSID Convention and the Energy Charter Treaty.

As a general rule, the court exercises its powers to arbitration procedures with Japan as the seat of arbitration only in the case where the Arbitration Act provides (Article 4 of the Arbitration Act). If there are any requests by a party in relation to provisional order disposition (Article 15 of the Arbitration Act) or examination of evidence implemented by the court (Article 35 of the Arbitration Act), the court will support the party and the arbitral tribunal, but the court will not become involved in arbitration procedures in other cases.

With respect to arbitration cases, there are court cases which state that common interpretations with the arbitration laws of other countries and internationally applicable interpretations should be aimed in the interpretation of the Arbitration Act of Japan, upon perceiving that the Arbitration Act based upon the Model Law indicates the legislative intent that domestic law discipline should have contents which are common with other countries to the extent possible (the Tokyo High Court decision of August 1, 2018, Kinyu Shoji Hanrei No.1551 p.13).

There are many court cases regarding arbitration agreements, annulment of arbitral awards, as well as recognition and enforcement of arbitral awards. For details, please see the separate PDF titled “Introduction to Japanese Arbitration Act with Court Cases.”

In Japan, representation rights at the courts in Japan are limited to attorneys admitted in Japan by the “Attorneys Act”; however, representation rights in international arbitration procedures with Japan as the hearing venue are widely open to foreign lawyers.

Specifically speaking, in Japan, the “Act on Special Measures concerning the Handling of Legal Services by Foreign Lawyers” (Act No.66 of 1986) provides for the handling of legal services within Japan by foreign lawyers. Under the said Act, foreign lawyers who fall under (i) or (ii) of the following may represent in the procedures of international arbitration cases in Japan.

(i) A person qualified as a “registered foreign lawyer” approved by the Minister of Justice and registered in the registry of the Japan Federation of Bar Associations (Article 5-3 of the Foreign Lawyers Act)

(ii) A foreign lawyer other than (i) who is engaged in work to perform legal services based upon his/her qualifications in a foreign country and who is requested and has accepted such arbitration case in that foreign country (Article 58-2 of the Foreign Lawyers Act)

Generally speaking, with respect to arbitration cases performed in accordance with due procedures under the Arbitration Act, persons other than attorneys admitted in Japan such as foreign lawyers are recognized to be able to perform activities as an arbitrator, and activities as arbitrators by persons other than attorneys admitted in Japan are also being widely performed in actual terms.