Colombia Introduces Executive Arbitration And Restores Arbitral Jurisdiction Over State Contract Disputes

Colombia has taken two significant steps toward strengthening its arbitration framework, providing businesses with broader options to resolve and enforce disputes. Law 2540 of 2025 introduces executive arbitration (Arbitraje Ejecutivo) and, in certain cases, allows domestic arbitral tribunals to enforce their own awards. In addition, a landmark Constitutional Court decision has restored arbitral jurisdiction over economic disputes arising from state contracts.

As of February 27, 2026, Law 2540 allows enforcement proceedings to be conducted before an arbitral tribunal, where the legal requirements—most notably, an arbitration agreement—are satisfied. As a result, businesses now have access to a faster enforcement route to recover outstanding debts, reducing their reliance on the congested ordinary court