URUGUAY Law and Practice Contributed by: Leonardo Melos, Bergstein Abogados
1. General 1.1 Prevalence of Arbitration
1.2 Key Industries Construction is one industry that has seen an increase in the number of disputes that have been referred to arbitration. Construction disputes also arise from the relationships the investors have with the real estate developers and/or the constructions trust established to build a project or plant. The credit card payments industry and the financial sector have both seen an increase in conflicts during the past couple of years. 1.3 Arbitration Institutions For international arbitration, the ICC is the most-used arbitral institution. For local arbitration, the CCA is the most prominent. No new arbitral institution was estab - lished in 2024–25. 1.4 National Courts There are no specific courts with particular jurisdiction to hear disputes related to international arbitration. Disputes related to international arbitration commonly fall within the jurisdiction of the civil courts first. As regards enforcement of international arbitral awards, the Supreme Court of Justice holds exclusive juris - diction in the analysis of the main legal requirements for enforcement (exequatur procedure). Once the Supreme Court of Justice has rendered a ruling on whether the legal requirements have been met, the arbitral award enforcement will be filed with the local court that would have assumed jurisdiction in the dis - pute. In recent times, the Uruguayan government has start - ed to promote Uruguay as a main seat for international arbitration in Latin America. This ambition is grounded in solid respect for the institutions and a new legal framework established by the Act on International Commercial Arbitration No 19.636 of 13 July 2018 (AICA). The AICA is based on the UNCITRAL Mod - el Law on International Commercial Arbitration (the “UNCITRAL Model Law”) and represents a legislative milestone for Uruguayan dispute resolution practice, as it is fully aligned with international legal standards. 2. Governing Legislation 2.1 Governing Law
In Uruguay, domestic parties do not resort to the use of international arbitration as the main tool to resolve disputes on a regular basis. The situations that domestic parties refer to arbitration or, eventually, local courts depend on the sophistication or complex - ity of the dispute. Uruguay has a long-standing tradition of respect for the rule of law, which has been cemented in the independence and quality of its judges. This tradition explains a certain under-development in its arbitration practice, both local and international. The main local arbitration institution is the Conciliation and Arbitration Centre ( Centro de Conciliación y Arbi- traje , or CCA) created by the Uruguayan Chamber of Commerce ( Bolsa de Comercio de Uruguay ) in 1997. The CCA is a member of the ICC, the Inter-American Commission of Commercial Arbitration, and the Ibero- American Centre of Arbitration. That said, international arbitration is prevalent with regard to disputes involving the Uruguayan state (or state-owned companies), particularly against foreign investors. International arbitration is also significantly used for disputes between local and foreign con - struction companies involved in large construction projects. Disputes related to distribution agreements and concessions are also referred to arbitration on a regular basis. The enforcement of foreign arbitral awards is regu - larly allowed by local courts, as long as those awards comply with the local regulations and/or treaties ratified by Uruguay. In this respect, Uruguay ratified the first Montevideo Procedural Law Treaty (MPLT) in 1899 and the second in 1940 (“1899 MPLT” and “1940 MPLT”), which allow the enforcement of foreign arbitral awards. Uruguay has also ratified the Conven - tion on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the “New York Convention”) by means of Law Decree No 15.229 of 11 Decem - ber 1981. Therefore, under the New York Convention, Uruguayan courts are bound to recognise and enforce foreign awards.
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