International arbitration is becoming the preferred method of resolving disputes in the fashion industry because international arbitration typically provides: (1) a private resolution so that the parties can still continue their business relationship in the future; (2) a neutral forum; (3) easy enforcement of the judgment throughout the world; and (4) a faster and cheaper dispute resolution than traditional litigation. Yet, not all international arbitrations are created equal.

When companies are considering international arbitration, or are faced with negotiating these types of provisions, companies should consider several aspects in order to ensure that there are no surprises, if eventually faced with arbitrating a dispute internationally. Failing to take a moment to consider the different factors beforehand may result in parties being surprised to learn that the arbitration they agreed to is different from what they had imagined. Below is a discussion of the pros and cons of some of the factors that parties should consider before agreeing to international arbitration.