Arbitration in Peru—No clear way out

Article summary

Arbitration analysis: After experiencing a timid recognition of arbitration in the 19th century and, later, a period of rigid and formalistic regulations in the early 20th century, the 1990s marked a modernisation aligned with international standards, culminating in the 2008 General Arbitration Law. However, it also led to the enactment of various regulations making arbitration mandatory for the State, making Peru, unlike any other country, a place where arbitration involving the State is the primary source of arbitrations in the country. A few high-profile cases of corruption, legal abuses, and the enormous number of arbitrations in which one party is the State, coupled with a shortage of qualified professionals, have resulted in repeated but ineffective reform attempts. The main problem is that efforts to address the issues of State arbitration often focus on reforming the General Arbitration Law, which regulates commercial arbitration in general. Against this backdrop, the recently established ‘Multisectoral Working Group’ tasked with updating the Arbitration Law does little to inspire confidence. While the...