With the upcoming implementation of the Third Central American Convention on Arbitration Centers the use of alternative methods of dispute resolution is being encouraged.
Alfredo Skinner-Klee, an expert in arbitration from the company Arenales & Skinner Klee said in an interview with Elperiodico.com.gt conducted by Lorena Alvarez: that "Arbitration has become a major institution in the trade, in international transactions and in the last 20 years resolution mechanisms via arbitration investment disputes have been enabled."
The country has the optimal geographic location, adequate infrastructure, modern legislation regarding these matters, and lawyers specializing in international commercial litigation.
According to Roman Feoli firm partner at Feoli & Co., "Panama has all the tools necessary to make this activity one of the largest in the country, all that remains is to make the decision as a country to achieve this goal and start to promote ourselves around the world. "
Putting a trade dispute in the hands of conciliation tribunals and private arbitration is not quite as convenient as it may seem at first glance.
Jerry Ten Brink, in an article in Elfinancierocr.com analyzes the common practice among businesses of establishing the jurisdiction of a private tribunal in resolving disputes which may arise.
Ten Brink points out, among some of the problems that can be incurred in this practice, the high cost of these justice services, latent conflicts of interest among judges, the acting lawyers and the parties involved in the conflict, lack of transparency for procedures, and the lack of a "second instance".
Costa Rica will host the Congress which will focus on continental law and the so called Common Law in International Arbitration.
The event will be held on 18 and 19 February this year and will include the participation of prominent lawyers and experts in these legal figures, which are crucial for trade and public-private and multilateral business relations.
The concessionaire of the route San Jose – Caldera, , Autopistas del Sol, has filed a lawsuit against the state demanding an update of the cost of road construction.
The company is seeking to "rebalance the contract based solely on an update of the amount of the original bid", said Luis Diego Flores, constitutional attorney. The concessionaire maintains that the cost of the works exceeded the figures set out in the original bid for the project.
A recent ruling by an international tribunal in a dispute between Guatemala and Iberdrola, sets a precedent against the claims of Teco Energy.
The U.S. Corporation Teco Energy, a former shareholder of Empresa Eléctrica de Guatemala (EEGSA), sued Guatemala before the International Centre for Settlement of Investment Disputes (ICSID), in 2010, claiming economic losses caused by a reduction in the Value Added Distribution implemented by the National Energy Commission in 2008.
The International Centre for Settlement of Investment Disputes (ICSID) of the World Bank, has ruled against the claim of the Spanish company Iberdrola against the State of Guatemala.
The lawsuit filed by Iberdrola, a major shareholder and operator of the Empresa Electrica de Guatemala (EEGSA), in late 2009, was due to a disagreement on the rate of Value Added Distribution (VAD), in force since August 2008.
The Executive Hydroelectric Commission of the Lempa River in El Salvador is generating recurring conflicts with international companies who they have contracted.
"The administration of the Executive Hydroelectric Commission of the Lempa River (CEL) is still creating expenses for Salvadorans both because of a lack of investment as well as the international arbitrations it has caused, for which it had to pay millions in compensation, and what is more, it is likely to continue to incur expenses in the 'conflict resolution'," according to an article Laprensagrafica.com.
A study funded by FUNIDES says that despite the advantages of the system, the practice of commercial arbitration in the country is very limited.
A Statement from the Nicaraguan Foundation for Social and Economic Development reads:
The Nicaraguan Foundation for Economic and Social Development (FUNIDES) presented on Thursday April 12th its study "Practice of Commercial Arbitration in Nicaragua", prepared by the consultant Elsy Marenco.