International Commercial Arbitration at Ecuador
Here’s an overview of International Commercial Arbitration in Ecuador:
International Commercial Arbitration in Ecuador
Legal Framework:
Ecuador is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which means foreign arbitral awards are generally enforceable in Ecuador.
The domestic arbitration law is primarily governed by the Ecuadorian Code of Civil Procedure, which contains provisions regulating arbitration.
Ecuador has also adopted provisions inspired by the UNCITRAL Model Law on International Commercial Arbitration, though not fully codified separately.
Arbitration agreements and awards are recognized and enforced under Ecuadorian law, subject to certain procedural safeguards.
Key Features:
Arbitration is accepted as a dispute resolution method in commercial matters, including international contracts.
Parties have freedom to agree on the arbitration procedure, the seat of arbitration, language, and applicable rules.
Both institutional arbitration (such as the Ecuadorian Arbitration and Mediation Center - CEM or international institutions like ICC) and ad hoc arbitration are common.
Ecuadorian courts generally respect arbitration agreements and arbitral awards, intervening mainly in cases like arbitrator appointment difficulties or award enforcement.
Grounds for refusal of enforcement align with those in the New York Convention, including issues of public policy, invalid arbitration agreement, or due process violations.
Practical Considerations:
Arbitration is increasingly popular in Ecuador for resolving international commercial disputes due to its efficiency and neutrality compared to court litigation.
Ecuador’s judiciary supports arbitration but may vary in expertise depending on the region.
Arbitration is especially common in sectors like oil & gas, mining, construction, and telecommunications.
Ecuador has been working to improve its arbitration framework to attract more foreign investment and provide reliable dispute resolution options.
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