Trends in International Arbitration in Latin America: Claims, Industries, and Triggers

International arbitration in Latin America has evolved dramatically in recent years, positioning the region as a critical hub for resolving cross-border disputes. In 2026, this evolution is marked by increasing regulatory reforms, sector-specific disputes, and new triggers for claims that reflect the region’s shifting economic and political dynamics. Written by Antonio Pereia and Gaston Mauvezin

Emerging Trends in Latin American Arbitration

Latin America continues to embrace arbitration as the preferred mechanism for resolving international disputes, but the landscape is shifting under the influence of regulatory scrutiny, transparency demands, and continued technology innovations.

• Regulatory and Legislative Reforms: Brazil, Colombia, Peru, and Costa Rica have introduced reforms aimed at increasing transparency and accountability in arbitration proceedings. For example, Brazil’s proposed Bill No. 3293/2021 seeks to limit arbitrators to ten active cases and mandates disclosure of any circumstance that could raise even the ‘slightest doubt’ about impartiality. It also proposes making arbitral awards public, signaling a move toward greater openness.
• Mexico’s Judicial Reform – A Game Changer: In June 2025, Mexico implemented a sweeping judicial overhaul that replaced merit-based judicial appointments with popular elections for all judges, including Supreme Court justices. This reform, touted as a democratization measure, sparked significant concerns about judicial independence, qualifications, and predictability in commercial disputes. With over 7,700 judges elected through a low-turnout process, critics warn of politicization, vulnerability to criminal influence, and erosion of technical expertise in complex cases. Businesses and investors have responded by increasingly turning to international arbitration and mediation to avoid exposure to an unpredictable court system. Arbitration seated outside Mexico—often in the U.S. or neutral jurisdictions—is now seen as essential for ensuring impartiality and enforceability of awards.
• Institutional Modernization: Costa Rica’s Arbitration Harmonisation Law aligns domestic and international arbitration with global standards, while Chile has formed alliances with international centers to strengthen its infrastructure.
• Technology and AI Integration: Arbitration is increasingly leveraging AI for document review, predictive coding, and case preparation. While these tools improve efficiency, they raise concerns about transparency and data security.
• ESG and Sustainability Disputes: Environmental and social governance issues are emerging as a major source of claims, particularly in energy and infrastructure projects. Disputes often center on compliance with environmental regulations and the impact of state measures on foreign investments.

Types of Claims Dominating Arbitration

Latin America’s arbitration docket reflects a mix of commercial and investment disputes, with notable growth in certain categories:

• Investment Treaty Claims: These remain prevalent, especially under ICSID. In 2024, Latin America accounted for more than one-third of ICSID filings, driven by disputes over expropriation, regulatory changes, and environmental restrictions.
• Contractual Breaches in Infrastructure Projects: Construction disputes are a leading category, often involving delays, cost overruns, and termination of large-scale projects. Claims related to concurrent delays and productivity losses are increasingly common.
• M&A and Shareholder Disputes: With increased cross-border transactions, disputes over valuation, earn-outs, and governance are rising. These cases often involve complex multi-jurisdictional issues.
• Technology and IP Claims: As Latin America attracts tech investment, IP-related disputes and licensing disagreements are entering the arbitration arena, particularly in Brazil and Mexico.

Industries Most Affected

Several sectors dominate the arbitration landscape in Latin America:

• Construction: Representing 44% of ICC’s global caseload in 2024, construction disputes are pervasive in Latin America due to the region’s infrastructure boom and frequent project delays.
• Energy and Natural Resources: These sectors account for 38% of ICSID’s new cases globally, and Latin America—with its abundant resources—remains a hotspot for related disputes. For example, Panama faced arbitration after closing a major copper mine due to social protests, highlighting the tension between resource nationalism and investor rights.
• Telecommunications and Technology: As digital transformation accelerates, disputes over spectrum allocation, licensing, and IP rights are growing.
• Financial Services: Banking and investment disputes, including those tied to foreign exchange restrictions and regulatory changes, are increasingly common.

Triggers Driving Arbitration Cases

Several factors are fueling the rise in arbitration across Latin America:

• Regulatory Shifts and Political Change: Policy reforms, such as Argentina’s new foreign investment regime and Mexico’s judicial overhaul, create uncertainty and trigger disputes over contract stability and investor protections.
• Environmental and Social Pressures: Governments imposing restrictions to protect ecosystems—such as Colombia’s Santurbán páramo case—often clash with investor rights, leading to arbitration under investment treaties.
• Economic Volatility and Inflation: High inflation impacts valuation and damages calculations, particularly in construction and energy projects, prompting claims for cost adjustments.
• Resource Nationalism and Social Unrest: Closure of mines and renegotiation of energy contracts due to protests or political shifts frequently result in arbitration filings.
• Third-Party Funding and Monetization: The rise of litigation finance and award monetization is enabling more claimants to pursue arbitration, especially in high-value disputes.

Conclusion

International arbitration in Latin America is no longer a niche practice, it is a cornerstone of regional and global commerce. The combination of regulatory reforms, sector-specific disputes, and new triggers such as ESG concerns and political volatility ensures that arbitration will remain central to resolving high-stakes conflicts. For stakeholders, the challenge is clear: adapt to the new dynamics or risk being left behind.