Arbitration in Argentina: An Overview
Introduction
This article summarises the key features Argentinian arbitration, the applicable legal framework and enforcement and appeal mechanisms available to parties. A Civil Law jurisdiction, Argentina offers flexibility and autonomy.
Legal Framework
Since 2018, international arbitration in Argentina has primarily been governed by the International Commercial Arbitration Law No. 27,449, which is based on the UNCITRAL Model law. Domestic disputes are governed by The Arbitration Law No. 24,573 and the Argentine Civil and Commercial Code (since 2015). Argentina is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, further strengthening the enforceability of international arbitral awards in the jurisdiction.
International parties most frequently adopt the International Chamber of Commerce's (ICC) Arbitration Rules. The Buenos Aires Chamber of Commerce's Arbitration and Mediation Center ("Centro de Arbitraje y Mediación de la Cámara de Comercio de Buenos Aires") is a popular choice for domestic disputes. Depending on the subject matter of the dispute, other available institutions include the Buenos Aires Stock Exchange, the Business Centre for Mediation and Arbitration (CEMA) and the Arbitral Chamber of the Buenos Aires Grain Exchange.
Key Features of Arbitration in Argentina
For a dispute to be submitted to arbitration in Argentina, the arbitration agreement must be in writing (either in a contractual clause or as a separate agreement). The agreement should clearly express the parties' intention to submit their disputes to arbitration. Reinsurance contracts specifying Argentina as the seat of any disputes must also submit to the law of Argentina.
Certain issues cannot be arbitrated under Argentine law. These include disputes around civil status or capacity of persons, family disputes or consumer rights actions.
Parties to Argentina-seated arbitrations have a wide degree of discretion to agree on the procedural rules governing the dispute. The scope of document production will generally be governed by the parties. Witness testimony is considered secondary and supplementary to primary documentary evidence and is generally only required where a document is unclear. Expert evidence, however, is widely used.
The burden of proof primarily falls on the party making the claim or assertion. There are circumstances in which the burden of proof may shift during civil arbitration in Argentina, as in the case of "special defenses" – such as force majeure or lack of jurisdiction – allegations of fraud or bad faith, and presumptions about the authenticity of documents.
Enforcement and Appeals
Argentina provides a supportive legal framework for the enforcement of both domestic and foreign arbitral awards. Argentina is a signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention. Enforcement is generally straightforward as long as the award meets the relevant requirements.
The general principle in Argentina is that there is no right to appeal an award on the merits of a case. Challenges are available, however, under specific circumstances. These include lack of jurisdiction, due process violation, contravention of public policy ("orden público") and irregularities in the composition of the Tribunal. Several decisions of the Argentine courts have restricted the grounds on which awards can be annulled and narrowed the scope of judicial review.
Conclusion
Arbitration in Argentina offers a flexible and efficient alternative to traditional litigation. The legal framework, coupled with the country's commitment to international arbitration standards, provides a solid foundation for the resolution of disputes. International parties can benefit from the confidentiality, autonomy, and enforceability that arbitration in Argentina provides. As arbitration continues to evolve, it is expected to play an increasingly significant role in the Argentine legal landscape.
