Interpretation and Application of the New York Convention in Paraguay

Abstract

The New York Convention has not been the subject of much criticism in Paraguay. Paraguayan courts have generally recognized and enforced foreign arbitral awards under the terms of the Convention. However, case law regarding arbitration, particularly international arbitration and the recognition and enforcement of foreign arbitral awards, is scarce and non-binding. The Paraguayan Arbitration and Mediation Law is essentially the UNCITRAL Model Law of 1985 with minor amendments. Yet a bureaucratic and an inefficient judicial system make it very difficult to predict the outcome in Paraguay of future cases under the Convention. Undue delays in the enforcement of arbitral awards are a general practice in Paraguayan courts, and the lack of training and knowledge by domestic judges of arbitration legislation, treaties, and international trends may also imperil application of the Convention’s underlying principles.

José Antonio Moreno Rodríguez is a Member of the International Chamber of Commerce Arbitration Court, a practising Attorney in Paraguay (www.altralegal.com) and a Law Professor (www.jmoreno.info).

Before reading this report, please bear in mind the following: (i) Case law regarding arbitration, particularly international arbitration and the recognition and enforcement of foreign arbitral awards under the New York Convention, is very scarce in Paraguay; (ii) According to the Paraguayan legal system, case law is a non-binding legal source; the primary and binding legal source is law; (iii) The Arbitration and Mediation LawNo. 1879/2002, is the UNCITRAL model arbitration law of 1985 with minor amendments.