Union of Chambers and Commodity Exchanges of Turkey

TOBB President M. Rifat Hisarcıklıoğlu stated that the legal system is not just the main support of the state but also the economy, “Because justice means trust. If there is trust the real sector can plan ahead to more easily take on risk and produce. A more just and active legal system brings about a healthier business and investment environment. Arbitration has always been a part of our culture and beliefs. We, as a nation, believe that justice is the basis of state. We defend the rights of the individual.”

Stating that Turkey is a medium income country, Hisarcıklıoğlu said, in order to rise to the level of a high income country, the state must be strengthened; with a well-functioning legal system, feeling of trust will increase; with increased trust economy will function better and more fairly.

- “Justice is bread”

Hisarcıklıoğlu reported that courts receive over 6 million cases each year, being able to only bring two thirds of them to completion within that year, while 2 million cases lag to the year after; piling up worse each year.

Stating that the average run time for cases has increased from 200 days to 450 in the last 5 years, Hisarcıklıoğlu stressed the importance of alternative conflict resolution methods prior to seeking it in the courts, reporting that 98% of cases commercial disputes in the UK are resolved with alternative methods; that a case which might last 5 years in courts is resolved in a month through arbitration and mediation.

Stating that they’ve been working with the Ministry of Justice, Judicial Court and Council of State for the last 6 months in order to make arbitration mandatory for commercial cases under a certain monetary value and mediation mandatory for individual cases, Hisarcıklıoğlu said, “We’ve worked comprehensively and prepared a roadmap and we want these to enter into effect as soon as possible.”

- “Time is money for business community”

The TOBB President stressed the need for a legal system wherein the rights of domestic and international investors and businesspeople are clearly defined and protected; that the emergence of arbitration is to provide international investors confidence and encourage them to invest more.

Hisarcıklıoğlu stated that international arbitration, which at one time was used exclusively by the elite, has become a conflict resolution method used by merchants and lawmakers at every level.

“As trade has become global, so has conflict resolution methods for it,” said Hisarcıklıoğlu drew attention to the fact that 75% of trade disputes in developed economies are resolved using alternative conflict resolution methods such as arbitration.

Stating that time is money for the business community, Hisarcıklıoğlu pointed out that arbitration mechanism provides quicker and more specialized experts to bring disputes to a resolution.

- “İSTAC will become a regional arbitration center”

Hisarcıklıoğlu emphasized that Turkey will soon become a preferred arbitration center for the region.

Touching on the fact that İSTAC will bring many new opportunities for both the private sector and the public sector, Hisarcıklıoğlu said, “When we consider its global counterparts, strengthening arbitration should be done in cooperation by both the private sector and the public sector. In developed countries, arbitration is used by both, accelerating its use there. Our desire is that arbitration is also integrated into public sector clauses. That Istanbul Arbitration is included in agreements. This way, İSTAC will become a regional arbitration center. In Akhism and Lodge systems, arbitration and mediation were present; they were used to resolve trade disputes. These methods which were very much present in our culture and history were forgotten. The West adopted and developed them.”

Hisarcıklıoğlu stated that he is also the chairman of the Jerusalem Arbitration Center established to resolve the trade disputes between Palestinian and İsraeli businesspeople and that the establishment efforts of the Nicosia Arbitration Center are underway as a part of the Nicosia Forum.

Recalling that it has been decided that an arbitration center for Islamic countries would be established at the 13^th Summit of the Organization of the Islamic Cooperation, Hisarcıklıoğlu stated that TOBB will be contributing actively to this process.

- İSTAC Chair Akıncı

İSTAC Board Chair Prof. Ziya Akıncı provided information regarding the İstanbul Arbitration Center and its work.

Akıncı said, “İstanbul becoming an important arbitration center and Turkey becoming a center for the dispensation of just resolutions to disputes is priceless.”

Stating that İSTAC provides important opportunities to the business community with fast, experienced and inexpensive arbitration, Akıncı said that the decisions made by İSTAC would be as definite, binding and actionable as those provided by a court, serving to benefit the investment environment orf Turkey.

Akıncı reported that the first international cases have been brought to the center, one from a Middle Eastern country, the other from Africa, and that the case for one of them has begun.

Emphasizing the fact that İSTAC has been elected as the arbitration authority for the construction of the third airport in İstanbul as well as the transportation of potable water to the TRNC, Akıncı urged isntitutions and companies active işn Turkey to choose the İstanbul Arbitration center for their arbitration needs.

- Hakan Öztatar

Ministry of Justice Arbitration Department Chief and İSTAC Council Member Hakan Öztatar reiterated that the Ministry is wholly in support of arbitration and mediation systems.

Stating that the legislation that disputes between employee and employer would be first directed towards mediation is slated to enter into effect at the start the new year, Öztatar reported that over 97% over cases which have applied for mediation, over 1800 cases, have been resolved.

Reporting that 59 mediation centers have been established at 59 courthouses throughout Turkey, Öztatar stated that over 80% of cases brought forward at these centers are resolved within a day.