The Recognition of Foreign Arbitral Awards in Brazil

Article by Fabiana Videira Lopes*

Arbitration is increasingly being chosen as a method of resolving disputes in contracts involving Brazilian parties. A key concern, both for Brazilian parties and for international parties doing business with Brazilian parties, is whether arbitral awards made in another jurisdiction can be recognized and, as a result, enforced, against counterparties with assets in Brazil.

Background: Recognition of foreign arbitration awards in Brazil

Law 9307, the Arbitration Law, was enacted in Brazil in 1996. Although the Arbitration Law initially faced constitutional challenge, the Brazilian Supreme Court ultimately held it to be constitutional in 2004. This has significantly encouraged the inclusion of arbitration clauses in contracts involving Brazilian parties.