Arbitration in Argentina: new International Commercial Arbitration Law
On July 26th., 2018, it was published in the Official Gazette the new International Commercial Arbitration Law No. 27,449 (Ley de Arbitraje Comercial Internacional, or LACI by its Spanish acronym). The LACI follows theUnited Nations Commission on International Trade Law (UNCITRAL) Model Lawas amended in 2006, and is a breakthrough concerning arbitration in Argentina, positioning the country as an appealing venue of choice for out-of-court business dispute settlements in Latin America.
Additionally to thoroughly regulating the arbitration agreement and procedure, the LACI also governs therecognition and enforcementof any arbitral award in Argentina, irrespective of the seat where it has been issued. As for this issue, the Title IX, Chapter 2, Article No. 104, of the LACI established that the recognition and enforcement of an arbitral award in Argentina may only be denied if:
a) The party against whom the arbitral award is invoked proves before the competent court:
I. That one of the parties to the arbitration agreement was affected by some disability or capacity restriction, or that said agreement is not valid under the law to which the parties have submitted it, or if nothing has been indicated in this regard, under the law of the country in which the award was issued; or
II. That the party against whom the award is invoked has not been duly notified of the appointment of an arbitrator, of the arbitral proceedings, or that it has not been able, for any other reason, to assert his rights; or
III. That the award refers to a controversy not foreseen in the agreement of arbitration or contains decisions that exceed the terms of the arbitration agreement. However, if the provisions of the award that refer to theissues submitted to arbitration can be separated from those that are not, the recognition and execution may be given to the former; or
IV. That the constitution of the arbitral tribunal or the arbitration procedure have not followed the agreement between the parties or, in the absence of such agreement, have not complied with the law of the country where thearbitrationhas been held; or
V. That the award is not yet binding on the parties or has been annulled or suspended by a court of the country in which, or under whose right, the award has been issued; or
b) The court verifies:
I. That, according to Argentine law, the subject of the dispute is not susceptible of arbitration; or
II. That the recognition or enforcement of the award would be contrary to Argentine international public order.
 To read the law you may visit http://servicios.infoleg.gob.ar/infolegInternet/anexos/310000-314999/312719/norma.htm(text only available in Spanish).
 Arbitration has been recently allowed as an alternative dispute resolution method for Public-Private Partnership Contracts (see our article on https://cspabogados.com.ar/en/ppp-contracts-in-argentina/), and the Renewable Energies Regime (review the following post on our Legal Blog: https://cspabogados.com.ar/en/investment-incentives-in-renewable-energy-in-argentina/).
Mario Eduardo Castro Sammartino
Our publications exclusively express the author´s opinion and do not purport to be legal counsel on any case. Should you need it, you must consult with your trusted lawyer or may contact us at your convenience. If you liked the article, please, share it.
Recent articles in our Legal Blog
Pre-employment background checks on applicants have multiple facets and legal implications. Know what may be done in Argentina
Foreign investments in Argentina are protected by Articles No. 14 and 20 of the National Constitution.
Our Labor Guide to Doing Business in Argentina is intended to cover the basics of Argentine labor laws, the hiring process of employees, general salary and working conditions, termination of employment, and many other subjects of interest for those companies planning to do business in Argentina or already established and with a current payroll.
The commercial lease agreement in Argentina on urban real estate is governed by the Civil and Commercial Code of the Nation, as amended and supplemented by the new Lease Law No. 27,551. See what the main provisions are.
The Federal Congress has enacted new corporate income tax rates in Argentina, as of fiscal years beginning on or after 1 January 2021. See what these new rates are.