Kathmandu, August 15

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has signed a memorandum of understanding (MoU) with SAARC Arbitration Council (SARCO) to obtain arbitration service.

The MoU has paved way for the FNCCI and its members to approach SARCO for settlement of disputes related to commerce, industry, banking, investment, among others.

SARCO is a specialised body under SAARC. It provides arbitration services to the SAARC nations in settling various disputes that may be referred to it by the member states and their people. SARCO is an inter-governmental body mandated to provide a legal framework or forum within the region for fair and efficient settlement of disputes.

Along with FNCCI, Nepal Council of Arbitration has also inked a pact with SARCO. FNCCI has said that this move of FNCCI will boost the confidence of investors and traders in the country.

“Partnership with a reliable dispute settlement mechanism outside of the local courts will give boost to the confidence of foreign investors in Nepal,” said Pashupati Murarka, president of FNCCI.

SARCO rules have been developed based on the United Nations Commission on International Trade Law (UNICTRAL) model law that is applicable in SAARC member states.