Set against this is a recognition that effective international
5
commercial dispute resolution is necessary if parties involved in international trade
are to have the confidence to enter into these transactions. Examination of the
response of developed legal systems to the issue of foreign judgment enforcement
reveals that States have been cautious in seeking to balance these competing policy
objectives. Foreign judgment enforcement is controlled by rules that significantly
attenuate the power of the courts in this area. In Australia for instance, in the absence
of reciprocal legislative arrangements with selected foreign jurisdictions for the
mutual recognition and enforcement of each other’s judgments,1
the restrictive
common law rules govern recognition and enforcement. This common law regime is
ineffective.2
In contrast, the legal system of the United States of America is more
accommodating of applications for the enforcement of foreign judgments.3