Ecuador Welcomes Arbitration (Back)

2021 marked a new chapter for arbitration in Ecuador: after re-joining the International Centre for Settlement of Investment Disputes Convention in June, Ecuadorian Executive Decree No. 165 in August introduced Regulations to add to and improve the existing legal framework for arbitration as it results from the Ecuadorian Arbitration and Mediation Law ("AML"). The AML, which was enacted in 1997 and amended in 2015, had been criticised for its lack of clarity.

Of the 15 new Regulations introduced to improve the existing arbitration law, the following are particularly noteworthy:

• Arbitration involving the State and State entities: Under the AML, State entities may agree to both domestic or international arbitration – before or after a dispute arises, and when it is permitted by law or an international treaty. It was not clear, however, in which instances the public entity had to seek the Attorney General's prior approval. The Regulations clarify that, pursuant to