Friday, September 29, 2006

Tenth Anniversary of the Brazilian Arbitration Act

Investing in a country depends on an analysis of such country's legal rules and institutions. Investors want to know the extent of legal protections in the host-country, and, very importantly, if the host-country recognizes arbitration as an effective means of dispute resolution.

Having an arbitration-friendly legislation is one thing, but good use of such legislation is a different one.

I believe that it can be said, without any doubts, that Brazilian courts have been supportive to arbitration, specially in the last five years (after the 2001 Brazilian Supreme Court decision upholding the constitutionality of the Brazilian Arbitration Act).

To date, Brazil does not have a highly developed arbitration culture, but I believe that it is a matter of time until Brazil gets there. Until such time, however, it can only be hoped that the Brazilian Arbitration Act —dated September 23, 1996— is reviewed and modernized, or even that a new legislation is passed into law.

No comments: