ABSTRACT: The 1958 New York Convention authorizes the courts to refuse recognition and enforcement of foreign and "non-domestic" arbitral awards in case of violation of the public policy of that country. However, there being at least five identifiable levels of public policy (domestic, international, regional, transnational and truly international), the Convention does not specify which one(s) should be considered by the State court. This articles suggests that only the truly international, regional and the relevant country's international public policy be considered by the State court. The refusal, based on public policy, albeit very frequently raised by the parties, is and shall be accepted only on an extraordinary basis. Nevertheless, should such intervention be appropriate and necessary, it has to be effective and broad. It means that both merits and facts have to be subject to control, as a result of state courts' duties towards the society.
Revista Brasileira de Arbitragem