Innovations to the Arbitration Rules by the Paraguay Arbitration and Mediation Center (CAMP) were presented during the IX International Arbitration Conference, organized by the National Chamber of Commerce and Services of Paraguay and held on November 11 2021. Such innovations, aimed at optimizing and making arbitration processes administered by CAMP more efficient, adopt several of provisions from the most modern arbitration rules at international level.
Highlighted below follows some of the most relevant innovations adopted by the CAMP Arbitration Rules:
- Rules applicable to arbitration: Unless otherwise agreed between the signatories of the arbitration clause, rules applicable to arbitration are those in force at the time of the start of the arbitration process. This way, possible doubts and/or differences are prevented, mainly in regard to whether the rules applied to the process should be those in force at the time of the agreement or those at the start of the arbitration.
- Shorter terms for the constitution of the arbitral tribunal: under the new Arbitration Rules, the CAMP should appoint the second arbitrator within 10 (ten) calendar days after the expiration of the term for one of the parties to notify the appointment of arbitrator (within thirty (30) days following receipt of a party’s notification appointing an arbitrator in the case of international arbitration, or ten (10) days in the case of a national arbitration). Previously, there was no deadline set for the Center to appoint the second arbitrator
On the other hand, unlike the previous rules in which the term for accepting the appointment of an arbitrator was indefinite, it is currently anticipated that after appointment notices by the CAMP to the respective arbitrators, they have 3 (three) business days to accept or reject such appointment. Failing to reply within said term will result in the appointment being considered as rejected.
- Emergency Arbitrator: the figure of an emergency arbitrator is added, who may order provisional emergency measures before establishing the arbitral tribunal.
- Determination of the term to award: the term to award is 3 (three) months counted from the closing date of the proceedings, and may be extended by the arbitral tribunal, upon being duly justified, only once and for the same term.
- Publication of awards: CAMP may publish selected awards or decisions, provided that consent is given by the parties and a previous edition is performed, keeping the names of the parties and any other information that would allow their identification. The purpose of this addition is to generate arbitration jurisprudence.
- Possibility of extension of the term for deposit of legal costs: once the legal costs are determined, the CAMP may grant, exceptionally and at the request of a party, up to a maximum of ninety (90) calendar days for the deposit of the corresponding legal costs. Entities that have internal bureaucratic processes will find easier to manage the payment of legal costs through this step, also avoiding any obstruction of the process or even sending the case to the archives.
These changes proposed by the CAMP to its Arbitration Rules are kindly welcome as they offer greater incentives for local and foreign investors who conduct their business in Paraguay, and even for Paraguayan State institutions to choose CAMP arbitration as a mechanism for solving disputes arising from its commercial / contractual relationships.
For more information, please contact Martin Carlevaro: martin.carlevaro@berke.com.py and/or Adriana Ocampos: adriana.ocampos@berke.com.py
