Arbitral Award: A path to peace, not conflict

Earlier this week, the Philippine embassy in Washington commemorated the 10th anniversary of one of the most consequential legal milestones in Philippine history – the landmark Arbitral Award rendered under the United Nations Convention on the Law of the Sea (UNCLOS). Commemorating this important anniversary with us were fellow ambassadors in Washington, members of the diplomatic circle, senior US officials, scholars and friends from many countries.

The ruling was handed down by the Arbitral Tribunal on July 12, 2016 – and 10 years later, its importance has reached far beyond the West Philippine Sea, standing as a shining beacon for the rule of law and peaceful dispute settlement. Most significantly, it serves as enduring proof that international disputes can be resolved through law rather than force, through reason rather than intimidation.

As the late Foreign Affairs Secretary Albert del Rosario stated when he faced the Permanent Court of Arbitration in 2015, the Philippines has “respected and implemented its rights and obligations under the Convention in good faith.” The filing of the case in January 2013 was a message to the global community that the Philippines has chosen to take the path of law to protect its maritime territory in a peaceful manner.

Looking around the room during the commemorative occasion, I was reminded that it was not simply a Philippine event. It was an affirmation by the international community that respect for international law remains the cornerstone of peace and stability. Certainly, the gathering reflected a shared belief that rules – not power alone – must guide relations among nations.

At a commemorative conference led by the Department of Foreign Affairs in Pasay City the other day, Secretary Tess Lazaro told guests that the gathering was “not merely to look back at a page in history” but to “look forward, bound by a fundamental, enduring truth: that the rule of law is, and must always remain, the ultimate guarantor of global peace.”

To be clear, the 2016 Arbitral Award was never about humiliating another country or declaring winners and losers. The ruling demonstrated that even the most difficult disputes can be brought before an impartial tribunal within the framework of UNCLOS. It reinforced the principle that competing maritime claims and disagreements of member-states over the interpretation of maritime laws should be addressed peacefully through established legal mechanisms.

That lesson has become even more relevant today. Around the world, vital waterways continue to be affected by geopolitical tensions. The war in the Middle East and the consequent situation in the Strait of Hormuz, one of the world’s most vital maritime chokepoints, is a vivid example of this reality. Nearly one-fifth of the world’s oil supply passes through this narrow corridor. And whenever tensions rise, energy prices react instantaneously, shipping costs increase, inflation follows, causing global markets to become uncertain and unsettled. The consequences are felt not only in the Middle East but all across Asia, Europe and the Americas.

The same principle applies in the Indo-Pacific. Freedom of navigation and secure sea lanes are essential to global commerce. Every nation, whether large or small, ultimately benefits when maritime disputes are managed peacefully and in accordance with international law.

The Arbitral Award therefore offers a broader template. While each dispute has unique facts, the underlying principle is universal: dialogue, diplomacy and impartial legal processes provide a far better path than confrontation. The Philippines has consistently maintained that adherence to UNCLOS strengthens stability, encourages responsible conduct and reduces the danger of miscalculation.

As ASEAN chair, the Philippines is well positioned to champion these principles. ASEAN has long supported peaceful settlement of disputes and a rules-based regional order, and the Arbitral Award complements these aspirations by demonstrating that law can be an effective instrument for managing complex maritime issues.

Let’s not also forget the compelling economic dimension – investors seek stability, and businesses expand where the rule of law prevails. Manufacturers, insurers and shipping companies depend on open sea lanes. Every unnecessary confrontation therefore imposes additional costs that ultimately fall on ordinary citizens due to higher prices, disrupted supply chains and slower growth. As I have often said, economic security and national security are inseparable.

The award is also a reminder to smaller and middle powers that international law gives every nation a voice. There may be great disparity between nations in terms of military strength or economic influence, but legal principles establish standards that apply equally to all.

Here in Washington, conversations after our embassy commemoration reflected quiet optimism. Many guests are of the opinion that while disagreements among nations are inevitable, conflict is not. They also expressed hope that the discipline of diplomacy and the authority of international law will continue to prevail over coercion.

History has shown us that wars are costly, but history also teaches that wise diplomacy can prevent conflict. The global community has every reason to support peaceful legal mechanisms that reduce tensions before they escalate into crises. The Arbitral Award reminds us that justice and stability are mutually reinforcing, not mutually exclusive.

The Strait of Hormuz offers a timely reminder of what is at stake. When strategic waterways become flashpoints, the entire world pays the price. When nations choose dialogue over confrontation, everyone benefits.

Ten years after the Arbitral Award, its greatest legacy is not merely what it resolved for the Philippines. Its greater contribution is the example it offers humanity – that even the most difficult disputes need not be settled by intimidation or conflict. The rule of law remains far less costly than the price of war, and peace still remains the strongest foundation for prosperity.

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