Recent Development of Arbitration Law in Brazil

Abstract

Arbitration in Brazil has undergone a remarkable transformation, graduating from a tentative start to a robust and thriving practice. Like many jurisdictions with complex judicial systems, Brazil has found in commercial arbitration a valuable tool to foster economic growth and provide efficient dispute resolution for both domestic and international parties. Initially, when the Arbitration Act was enacted in 1996, it was met with skepticism. Many Brazilian scholars and legal practitioners questioned its constitutionality, as the concept of removing cases from the traditional judiciary's purview seemed far-fetched. The turning point came when Brazil's Supreme Court upheld the constitutionality of the Arbitration Act, providing a significant boost to its adoption and legitimacy. Since then, the country has witnessed rapid advancements in arbitration practices, making it an increasingly attractive venue for resolving commercial disputes. This development reflects a growing confidence among businesses and legal experts in the efficiency and effectiveness of arbitration as a complementary mechanism to the traditional court system. This article aims to delve into the evolving legal environment surrounding arbitration in Brazil. It will explore the dynamic trends that have emerged, such as the increasing sophistication of arbitration procedures, the establishment of dedicated arbitration centers, and the rising number of professionals specializing in this field. Additionally, the article will analyze how these developments have influenced Brazil's attractiveness as a hub for international arbitration, and the impact this has on the nation's legal and economic landscape. By examining these aspects, the article will provide a comprehensive overview of the current state and future potential of arbitration in Brazil.