International Commercial Arbitration at Nicaragua
International commercial arbitration in Nicaragua is governed by domestic laws and influenced by international treaties and conventions. Below is an overview of the legal framework, relevant institutions, and Nicaragua's position in the international arbitration landscape:
🔹 Legal Framework
1. Domestic Arbitration Law
Nicaragua’s arbitration regime is primarily governed by Law No. 540: Ley de Mediación y Arbitraje (Law of Mediation and Arbitration), enacted in 2005.
It provides the legal framework for both national and international arbitration.
The law is based on the UNCITRAL Model Law, making it aligned with international standards.
2. International Conventions
Nicaragua is a party to key international treaties:
✅ New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) – Nicaragua acceded in 2003. This ensures recognition and enforcement of foreign arbitral awards.
✅ Panama Convention (Inter-American Convention on International Commercial Arbitration, 1975) – Nicaragua is also a party to this regional treaty.
3. Civil and Commercial Codes
General principles of contract law and commercial transactions under Nicaraguan law support arbitration agreements and their enforcement.
🔹 Key Features of Arbitration in Nicaragua
Party autonomy: Parties can choose the applicable law, arbitration rules, number of arbitrators, and seat of arbitration.
Competence-competence: Arbitral tribunals in Nicaragua can rule on their own jurisdiction.
Judicial support: Courts have a supportive role but cannot interfere in the merits of the case.
🔹 Arbitration Institutions in Nicaragua
While Nicaragua does not have a globally prominent arbitration institution, the following centers offer arbitration services:
⚖️ Centro de Mediación y Arbitraje de la Cámara de Comercio de Nicaragua (CMA-CCN)
Based in Managua.
Provides rules, panels of arbitrators, and administrative support for domestic and international disputes.
🔹 Enforcement of Arbitral Awards
Awards rendered in Nicaragua or abroad are enforceable under the New York Convention and Law No. 540.
The process involves:
Application to a competent court.
Providing the original award and arbitration agreement (or certified copies).
Ensuring compliance with procedural requirements.
🔹 Challenges and Considerations
Judicial expertise in arbitration is still developing.
Institutional capacity is more limited compared to regional centers like Panama or Mexico.
Businesses are advised to choose experienced arbitrators and possibly consider foreign institutions or seats if neutrality is a concern.
✅ Summary
| Aspect | Details |
|---|---|
| Governing Law | Law No. 540 (2005), based on UNCITRAL Model Law |
| Key Institution | CMA-CCN (Chamber of Commerce Arbitration Center) |
| International Treaties | New York Convention, Panama Convention |
| Enforcement of Awards | Allowed under both national law and international treaties |
| Judicial Role | Supportive, limited intervention |
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