CHILE Trends and Developments Contributed by: Julio Pellegrini, Fernando Zuñiga and Bernardo Aylwin, Pellegrini y Rencoret
Pellegrini y Rencoret Av. Isidora Goyenechea 3621 20th Floor Las Condes Santiago Chile
Tel: +56 22611 9500 Email: pycia@pycia.cl Web: www.pycia.cl
Introduction Chile has long enjoyed a distinguished reputation as a respected and arbitration-friendly jurisdiction. A cornerstone of this standing is the enactment of the International Commercial Arbitration Act in 2004 (“International Arbitration Act” or “IAA”), which closely mirrors the 1985 UNCITRAL Model Law on Interna - tional Commercial Arbitration. Upon its enactment, the IAA promptly aligned Chile’s legal framework with globally recognised standards in international arbitration. It introduced a compre - hensive regime for setting aside awards and for the recognition and enforcement of foreign arbitral deci - sions, consistent with Chile’s obligations under the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention). Over the past two decades, Chilean courts have developed a uniform and consistent body of case law under the IAA (to date, the authors are not aware of any court decision that has upheld an action to set aside an international arbitral award). The judiciary has consistently adhered to the principles of minimal judi - cial intervention and a pro-arbitration stance, showing marked deference toward arbitral proceedings – both in enforcing foreign awards and in refraining from any substantive review of their merits during annulment proceedings. Beyond its harmonising function, the IAA also embod - ies a forward-looking policy ambition: positioning Chile as a leading arbitral forum within Latin America. This strategic aspiration is explicitly articulated in the presidential message accompanying the IAA’s legisla -
tive proposal: “It is a desirable objective, both from a public and private standpoint, for our country to occu- py a prominent position as a center for arbitration in international trade, especially at the Latin American level. Chile’s prestige in terms of institutional solidity, legal soundness, and high levels of transparency make it a natural arbitration center in Latin America ”. This ambition has transcended the goal of providing Chil - ean parties with adequate institutional mechanisms for resolving cross-border disputes. As expected, the early cases of international arbitra - tion seated in Chile typically involved at least one Chilean party. According to 2024 statistics from the Centro de Arbitraje y Mediación de la Cámara de Comercio de Santiago , Chile’s leading arbitral insti - tution, approximately half of the parties involved in international arbitrations administered by the centre were Chilean. However, an analysis of recent decisions by Chile’s higher courts reveals an emerging and noteworthy trend: an increasing number of arbitrations between entirely foreign parties who nonetheless select Chile as the seat of arbitration. This incipient trend is significant. It not only vindicates the legislative intent underlying the IAA – demonstrat - ing that foreign parties perceive Chile as a reliable and neutral arbitral forum – but also attests to the judici - ary’s steadfast and coherent application of the Act. This note examines this emerging trend and analy - ses the evolving jurisprudential standards developed by the Santiago Court of Appeals (the “Court”) – the
133 CHAMBERS.COM
Powered by FlippingBook