By: Staff Writer
February 1, 2022
A lot of people don’t know or appreciate the burgeoning industry of international arbitration and alternative dispute resolution (ADR), but for a potential partnership between the wider South American continent and the Caribbean, synergies are poised to be exploited.
John Rooney, Law Professor at the University of Miami, Florida, said at the tenth annual Arbitration & Investment Summit last week: “I think that the Caribbean, in particular, the English Caribbean is a great resource that oftentimes is overlooked, perhaps because there’s simply not an awareness of the depth of experience in international arbitration, and I think it would be very useful.”
International arbitration is the preferred method of resolving cross-border disputes. The neutrality it offers, together with the relative ease of enforceability of awards, can make it a more attractive forum for disputes than litigating in contracting parties’ national courts.
There are several non-judicial entities that are involved in arbitration and can resolve international disputes outside of the court and legal system. Most notable of these entities is the International Chamber of Commerce, headquartered in Paris, France in addition to the World Bank having an arbitration mechanism.
There are steps being taken to making a more “western-centric” arbitration centre in that of the International Western Hemisphere Arbitration Adjudication and Mediation Centre (IWHAAM) to be headquartered in The Bahamas.
Mr Rooney added: “I know that our law school at Miami, we’re very much looking naturally for Latin America, but we are also very much looking to increase ties to the Caribbean. Because let’s say that the Caribbean arbitrary launch can satisfy the requirement of English speaking in an arbitration, then it could bring a completely different set of cultural experiences and awareness, probably much more akin to what you would see in Latin America. So, I think when you look at that, I think it’s very important to emphasize always the resource the Caribbean is.”
Cristiano Zanetti, Professor of Private Law at the University of Sao Paulo, Brazil, also said: “From my perspective, the answer is on the positive. Sometimes we have to remind ourselves that we are part of Latin America. Because it’s a big country (Brazil), the major cities are very far away from the borders, and we speak Portuguese and are the only ones that speak Portuguese and not speak Spanish.”
He also said that this language barrier “creates some division” between the various Latin American countries in South and Central America in addition to the Caribbean.
The efforts for increasing regional ties can “improve the practice of law professionals” Mr Zanetti added. With lawyers, while not needed for international arbitration, would benefit substantially from being involved in the process by virtue of the nature of the profession.
Gilberto A Guerrero-Roca, LLM Programme Director at Florida International University, added: “The governments in the region are becoming more aware of the treatment of the investors that are becoming more and more reliant on sophisticated advisors and law firms, not only based in the US but in Latin America, Europe and elsewhere.
“I think that the misconception that the governments in the region are the underdogs belongs to the past. Governments and agencies are nowadays fully aware about the risks of liability, how they have to offer warranties, attractive stimulus for potential investors.”