Permanent Court of Arbitration

China is ready to start negotiations with the Philippines on South China Sea-related issues if Manila ignores an arbitration ruling expected next week on their long-running territorial dispute, the official China Daily reported on Monday. The Philippines brought the case to the Permanent Court of Arbitration (PCA) in the Hague and a ruling is expected on July 12.

The case contests China's claims to the bulk of the South China Sea, a body of water through which $5 trillion in ship-borne trade passes every year. China has said it plans to ignore the Court's ruling which would represent a snub of the international legal order. The Philippines, Vietnam, Malaysia, Taiwan and Brunei have overlapping claims with China in the area.

The PCA is the first permanent intergovernmental organisation to provide a forum for the resolution of international disputes through arbitration and other peaceful means. It was established by the Convention for the Pacific Settlement of International Disputes, concluded at The Hague in 1899 during the first Hague Peace Conference.

The Conference had been convened at the initiative of Czar Nicolas II of Russia “with the object of seeking the most objective means of ensuring to all peoples the benefits of a real and lasting peace, and above all, of limiting the progressive development of existing armaments.” PCA was set up to facilitate arbitration and other forms of dispute resolution between states.

It has developed into a modern, multi-faceted arbitral institution that is now perfectly situated at the juncture between public and private international law to meet the rapidly evolving dispute resolution needs of the international community. Today, the PCA provides services for the resolution of disputes involving various combinations of states, state entities, intergovernmental organizations, and private parties.

The PCA’s Secretariat, the International Bureau, headed by its Secretary-General, and comprising an experienced team of legal and administrative staff of various nationalities, provides administrative support to tribunals and commissions.

Its caseload reflects the breadth of PCA involvement in international dispute resolution, encompassing territorial, treaty, and human rights disputes between States, as well as commercial and investment disputes, including disputes arising under bilateral and multilateral investment treaties. The PCA offers assistance in the selection of arbitrators. It is is also a center for scholarship and publication, and a forum for legal discourse.