Even when compulsory jurisdiction is denied by state sovereignty, arbitral awards remain binding.
This article explains the structure and authority of the Permanent Court of Arbitration and clarifies the enforceability of international arbitration.

2016-08-06

Even if, under the principle of state sovereignty, the Court does not possess compulsory jurisdiction,
the arbitral award that is rendered nevertheless has binding force.

The following is from Wikipedia.

The Permanent Court of Arbitration
(French: Cour d’arbitrage international de La Haye)
is a permanent international arbitral tribunal established at the First Hague Peace Conference in 1899.

The original convention adopted in 1899 was revised at the Second Hague Peace Conference in 1907,
and 103 states have ratified either the original convention or the revised convention.

The Court is seated in The Hague, the Netherlands.

It is an institution separate from the International Court of Justice.

The Permanent Court of Arbitration administers arbitration, conciliation, and international inquiry
in disputes involving states, private parties, and international organizations,
and its work encompasses both public international law and private international law.

The Court is composed of an International Bureau and a list of potential arbitrators,
from which the disputing parties select the arbitrators.

The official working languages of the Court are French and English,
but proceedings may be conducted in any language agreed upon by the parties.

The procedural rules of the Court are based on the Arbitration Rules of
UNCITRAL
(the United Nations Commission on International Trade Law).

Even if, under the principle of state sovereignty, the Court lacks compulsory jurisdiction,
the arbitral award that is rendered is binding.

The Hague Justice Portal provides access to all information and documents
relating to international institutions and international courts located in The Hague,
maintains close cooperation with the Court,
and has launched a project to compile a collection of significant awards of the Permanent Court of Arbitration.