The PCA was established by the Convention for the Pacific Settlement of International Disputes, concluded at The Hague in 1899 during the first Hague Peace Conference. The Conference had been convened at the initiative of Czar Nicolas II of Russia “with the object of seeking the most objective means of ensuring to all peoples the benefits of a real and lasting peace, and above all, of limiting the
progressive development of existing armaments.”
Among the aims of the Conference had been the strengthening of systems of international dispute resolution—especially international arbitration. The delegates at the Conference were mindful that, during the previous 100 years, there had been a number of successful international arbitrations, starting with the “Jay Treaty” Mixed Commissions at the end of the 18th century, and reaching a pinnacle with the Alabama arbitration in 1871-1872. In addition, the Insitut de Droit International had adopted a code of procedure for arbitration in 1875. This movement toward favoring arbitration as a means of international dispute resolution was continued in 1899, and the most concrete achievement of the 1899 Conference was the establishment of the PCA as the first global mechanism for the settlement of disputes between states. Article 16 of the 1899 Convention recognized that “in questions of a legal nature, and especially in the interpretation or application of International Conventions” arbitration is the “most effective, and at the same time the most equitable, means of settling disputes which diplomacy has failed to settle”.
