New laws this week passed this week by the ACT Legislative Assembly mean businesses can keep their disputes out of the courts and settle by commercial arbitration.

The legislation also means the court can set aside proceedings if parties have entered into commercial arbitration.

The laws have brought the ACT into line with the rest of Australia and means the ACT can't become "a haven for litigants who want out of these rules" in other jurisdictions, Attorney-General Gordon Ramsay said.

"As parties to commercial arbitration agreements have agreed to their disputes being resolved more quickly and cost effectively through arbitration and not through litigation it's important they be prevented from undermining that same agreement," Mr Ramsay told the assembly.

"I do not expect there will be a substantial change in the number of corporations choosing the ACT for arbitrations but it is important that where there are opportunities to place the ACT in a competitive position that we take it."

Speaking in support of the bill, Labor politician Tara Cheyne said the "harmonised laws" would stop companies from "forum shopping" - searching for a court of jurisdiction with different laws to get a more favourable outcome.

However a spokeswoman for Mr Ramsay said there was no evidence of forum shopping in the ACT at present, although the new legislation would stop it occurring in future.

"The new legislation provides greater certainty for parties who enter arbitration agreements, reducing costs, taking pressure off the courts, and significantly improves commercial confidentiality around arbitration," she said.

Liberal politician Andrew Wall said the opposition would keep a close eye on the use of the agreements to make sure parties were not "forced" to enter into them.

However Mr Ramsay said the bill would not "impose" arbitration on anyone.

"It does not remove basic legal rights. It instead provides a framework for parties to commercial agreements to agree that they wish to settle their disputes by arbitration instead of litigation," Mr Ramsay said.