A consultation has been announced on the proposed new Scottish arbitration bill. At present, domestic Scottish arbitration law derives primarily from case law and has not been codified into statute. As regards international commercial arbitration, the UNCITRAL Model law applies, by virtue of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990.

The bill aims to clarify and codify Scottish arbitration law, so that the same rules will apply in principle to domestic and international arbitrations taking place in Scotland. The bill has been drawn from the UNCITRAL Model Law, the Arbitration Act of 1996 (England and Wales) and the previous draft Scottish arbitration bill of 2002. The approach to arbitration in the bill aims to be consistent with the rest of the UK where that is appropriate. The Scottish Minister for Community Safety commented in his announcement that although there is no guarantee that Scotland would immediately attract domestic and international arbitration business away from established arbitral centres, the reforms will put Scotland on an equal footing with other countries which have modernised, and mostly codified, arbitration systems.

Responses to the consultation are invited by 19 September 2008. The Scottish government aims to issue a report on the consultation process by the end of the year, and the bill will be introduced as soon as an opportunity arises in the legislative process.