International Commercial Arbitration at Brazil

International Commercial Arbitration in Brazil has developed significantly over the past few decades and is now a well-established mechanism for resolving cross-border commercial disputes. Below is an overview of the key features, legal framework, institutions, and practices related to international arbitration in Brazil:

🧾 Legal Framework

Arbitration Law (Law No. 9.307/1996)

Governs both domestic and international arbitration.

Aligned with the UNCITRAL Model Law, especially after the 2015 reform (Law No. 13.129/2015).

Supports party autonomy and the principle of competence-competence (the arbitral tribunal’s ability to decide on its own jurisdiction).

International Treaties

New York Convention (1958): Brazil ratified it in 2002. Courts generally respect foreign arbitration agreements and awards.

Panama Convention (1975): Also ratified and applied.

Recognition and Enforcement

Brazil has a strong pro-arbitration stance.

Recognition and enforcement of foreign awards are handled by the Superior Court of Justice (STJ).

Enforcement follows procedural rules under the Brazilian Code of Civil Procedure.

⚖️ Arbitral Institutions in Brazil

Brazil hosts several respected arbitral institutions, including:

CAM-CCBC (Center for Arbitration and Mediation of the Brazil-Canada Chamber of Commerce) – São Paulo

CAMARB (Business Arbitration Chamber – Brazil)

FIESP/CIESP Arbitration Chamber – São Paulo

CBMA (Brazilian Center for Mediation and Arbitration) – Rio de Janeiro

These institutions offer bilingual rules and are well-suited for international disputes.

🌍 International Arbitration Practice in Brazil

Languages: Portuguese is often used, but English, Spanish, and French are also accepted in international cases.

Choice of Law: Parties are free to choose the substantive law applicable to the dispute.

Seat of Arbitration: Can be in Brazil or elsewhere; Brazilian law distinguishes between domestic and foreign awards based on the seat.

Confidentiality: Arbitration proceedings are private, and confidentiality can be agreed upon or provided by institutional rules.

📈 Trends and Advantages

Judiciary Support: Brazilian courts generally support arbitration and are reluctant to interfere.

Growing Use: Arbitration is increasingly used in sectors like construction, energy, corporate disputes, and international contracts.

Legal Reforms: The 2015 amendments to the Arbitration Law clarified arbitrability in public administration and enhanced efficiency.

🚫 Challenges

Cost: International arbitration in Brazil can be expensive, particularly in large cases or when using international arbitrators.

Delay in Enforcement: While the STJ is efficient, enforcement procedures may still take time.

✅ Summary

Brazil is considered a pro-arbitration jurisdiction and an attractive seat for international commercial arbitration in Latin America. Its legal framework supports modern arbitration practices, and it hosts several sophisticated arbitration centers.

 

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