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ARTICLE · 04 FEBRUARY 2020

Peru Approves Arbitration Reform On Disputes Involving State Entities

On January 24, 2020, the Executive Branch of Peru approved the Emergency Decree No. 020-2020 ("Emergency Decree"), introducing amendments to the rules on international and domestic...

PeruLitigation, Mediation & Arbitration

On January 24, 2020, the Executive Branch of Peru approved the Emergency Decree No. 020-2020 ("Emergency Decree"), introducing amendments to the rules on international and domestic arbitration contained in Legislative Decree No. 1071 ("Peruvian Arbitration Law").

Interestingly, the modifications provided by the Emergency Decree only concern arbitration proceedings in which the State is involved as a party, apparently as a response to the corruption scandals in the region. The Emergency Decree suggests that the new amendments are aimed to strengthen arbitration in the country and avoid "bad habits" when the State is involved.

The decree was approved without the involvement of the Peruvian Congress, which was dissolved last year in September – and congressional elections were still to be held at the time of its enactment. While the stated intention behind the amendments is to be welcomed, some of the new provisions have already raised concerns among the arbitration

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