Abstract
The selection of the arbitration forum might seem a secondary issue. In fact, its underestimation may have impact on the whole arbitral procedure and on the parties' success.
The law applicable to each arbitration will be primarily the law of the country where that arbitration takes place - lex arbitri. The parties typically do not make a direct choice of the law applicable to their arbitration, but rather choose of the arbitral tribunal's forum, and the applicable lex arbitri stems from that choice.
Therefore, the seat of arbitration should be chosen carefully while taking into account some key criteria such as the finality and enforceability of the rendered award, minimizing the risk of long and costly appeals and the arbitral tribunal's neutrality. It might be rational for the parties in certain cases, especially in investment arbitration to isolate the disputes from the influence of certain geopolitical organizations, such as the European Union.
Fixing the arbitration forum outside of the reach of the EU reduces the risk of possible participation of its bodies, such as the European Commission, which often has damaging effects on the arbitrations or rendered awards.