This study aims to initiate the role of the Permanent Court of Arbitration (PCA) in resolving the South China Sea dispute, particularly through the 2016 ruling between the Philippines and China under Annex VII of the UNCLOS. The ruling is legally binding, but China’s rejection demonstrates the limited effectiveness of international arbitration mechanisms in dealing with major state actors. This condition is a real challenge for achieving the Sustainable Development Goals (SDGs), especially SDG 16, which emphasizes the importance of the rule of law and strengthening effective and inclusive settlement institutions at the global level. This study uses normative legal methods with a regulatory approach, conceptualization, and case studies. Data were obtained from international legal documents such as UNCLOS 1982, the UN Charter, PCA rulings, and related academic literature. The results of this study reveals that the legal finality of the PCA is procedural but has weaknesses in the form of law enforcement. Therefore, there is an urgent need for institutional reform of international arbitration integrated with the sustainable development agenda through SDG 16 as an evaluative framework.
Ronaboyd et al. (Fri,) studied this question.