In a recent post on our Latin America Notes blog, Marco de Sousa (Partner), Daniela Paez (Senior Associate) and Carlos Hafemann (Associate) consider Costa Rica's recently enacted Law No. 10535 to Harmonize Costa Rican Arbitration ("The Harmonization Law").
This significant reform is intended to harmonise the arbitration legal framework, which previously adopted a dualist system that distinguished between domestic and international arbitrations. This could lead to potential inconsistencies depnding on which rules and laws applied.
The Harmonization Law does not repeal the existing framework in its entirety, and distinctions between domestic and international arbitrations remain. However, it amends the existing rules to provide a harmonized and modern legal framework that streamlines the arbitration process in Costa Rica. This shifts Costa Rica away from dualist legislation, which remains the norm in other Latin American coutnries such as Chile, Colombia, and Argentina.
While its impact will only be fully felt once the bill enters into effect in April 2025, its enactment is an important development that parties considering arbitration in Latin America may wish to take into account.
The full post can be found here.
For more information, please contact Marco de Sousa, Daniela Paez, Carlos Hafemann, or your usual Herbert Smith Freehills contact.
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