With the ever-increasing globalization of trade, commercial relationships have extended far beyond local or national boundaries. As international trade expanded, both commercial law and public international law evolved as distinct disciplines. At the convergence of these two areas, the body of international commercial law emerged. This field governs cross-border commercial and economic interactions between individuals, corporations, and sovereign states. Its scope encompasses international contracts, dispute resolution mechanisms (including arbitration), and regulations established by international institutions. The overarching purpose of international commercial law is to streamline global commerce while upholding principles of fairness, legal certainty, and transparency.
A major step towards achieving these objectives has been the development and ratification of bilateral and multilateral treaties and conventions by states. Since countries tend to apply their own domestic legal systems to international transactions—often leading to legal inconsistencies—international conventions serve as harmonizing instruments. These treaties help unify legal standards, particularly among traders from different jurisdictions. Notable examples include the United Nations Convention on Contracts for the International Sale of Goods (CISG), also known as the Vienna Convention, which by 2023 had been ratified by 97 countries. Another foundational text is the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, adopted by more than 170 nations, including the Netherlands.
However, it must be emphasized that the applicability of such conventions is limited to signatory states. Their legal effects do not extend to countries that have not ratified them. For example, Iran has not acceded to the Washington Convention (ICSID), which governs the resolution of investment disputes between foreign investors and host states. As a result, an Iranian investor cannot invoke the ICSID framework in disputes involving ICSID member states. In some jurisdictions, conventions are ratified with domestic reservations or modifications, adding another layer of complexity to their interpretation and enforcement.
Given the sophisticated nature of international commercial regulations, particular attention must be paid to conflict-of-law rules, governing law clauses, and arbitration provisions within international contracts. It is not uncommon for one of the contracting parties to be a national of a country that has a bilateral investment treaty (BIT) or commercial agreement with Iran. In such cases, these treaties may take precedence over both domestic law and earlier multilateral agreements. Furthermore, some bilateral treaties may include explicit conflict clauses identifying which legal framework shall prevail in case of contradiction.
The determination of applicable law and the selection of a competent forum for the enforcement of judgments are among the most delicate issues in international legal practice. Iran currently maintains 61 bilateral investment treaties with countries including Germany, France, and others. These treaties may introduce legal standards that differ markedly from those in Iranian or partner state domestic laws. Handling disputes arising under these treaties requires nuanced legal interpretation and a high level of expertise—well beyond the scope of an average general practitioner.
Mr. Khademi, an attorney with over 20 years of experience, holds a Class A license to practice law in Iran and is a registered member of the International Bar Association. With fluency in English and specialization in international commercial and investment disputes, Mr. Khademi operates alongside a dedicated team of legal experts both in Iran and through his law firm AdvoLinK, based in the Netherlands. Leveraging the combined expertise of Dutch and international lawyers, AdvoLinK offers comprehensive legal solutions tailored to the unique challenges faced by Iranian and foreign businesses operating in cross-border and multicultural commercial environments.