Arbritation law in Peru
Peru is a safe place to do business in as long as you have counsel present and include mediation and arbitration clauses in all of your contracts (Peruvian law, 2014). In an unfortunate scenario where you and your Peruvian business partner have reached a dispute and negotiations fail to reach consensus you can opt for litigation or arbitration. As the Peruvian judiciary is considered to be slow, corrupt and inefficient to settle commercial disputes, arbitration procedures might be a better option. With the General Arbitration Act of 1996 (Law Nº 26572) and the Arbitration Act Legislative Decree 1071 of 2008 (otherwise known as the “Arbitration Act” or “Arbitration Statute”), Peru has developed a modern arbitration system (Arbitration Guide – IBA Arbitration Committee, 2014). These two laws are based upon the UNCITRAL Model Law and regulate national and international arbitration proceedings. Peru has signed both Bilateral Investment Protection Treaties and Free Trade Agreements that include specific chapters related to investment protection (Arbitration Guide – IBA Arbitration Committee, 2014).
The general proceedings are, in brief: the parties, by mutual agreement, appoint an independent third party to act as the arbitrator. This arbitrator is responsible for solving the claim(s) in the case, based on the rules chosen by the parties in the agreement (Peru- Litigation & Dispute Resolution, 2016). Arbitral procedures can take approximately from nine to 30 months, depending on the complexity of the issue (Latin Law, 2016). The most recognized arbitration institute and its respective rules, is Chamber of Commerce of Lima, followed by the American Chambers of Commerce of Peru and the Center for Conflict Analysis and Resolution of the Pontificia Universidad Catolica del Peru.