A leading Queensland manufacturer of sugar cane harvesting and processing equipment, CuttySark Ltd (CSL), wishes to expand into the large,somewhat under-mechanised Philippine sugar cane industry. It plans to sell its product range direct to about 20 medium sized Philippine equipment importers and 10 provincial sugar cane mills, taking advantage of a well-funded Philippine Government initiated five year sugar industry modernisation program. The program (i) exempts sugar industry related plant and equipment imports from all taxes and charges and (ii) grants importers and cane mills zero interest five year development loans in order to finance that modernisation program which relies heavily upon imports. CuttySark seeks your advice as an international business adviser, on the following critical legal aspects of its proposed standardised contracts for the sale and purchase of its 30 item product range varying in value from US$10,000 to $1 million (all amounts in US dollars hereafter).
(a) The choice of law - Australian, Philippine or some third country.
(b) Inclusion of a compulsory arbitration clause.
(c) The comparative merits of arbitration in Australia, the Philippines or elsewhere and choice of the arbitrator or arbitral body.
(d) The comparative ease of enforcing Australian and Philippine "foreign court" judgments or arbitrations award respectively in the other country. And briefly appraise the likely viability of CuttySark's proposed Philippine expansion if the Philippine Government insisted that as a condition of loan support, all plant and equipment import contracts be made subject to Philippine law and arbitration.