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Arbitration and mediation developments in Mexico after the NAFTA Agreement Sofía Gómez Ruano

Arbitration and mediation developments in Mexico after the NAFTA Agreement Sofía Gómez Ruano. June, 2010 2022 Committee Houston, Tx. Before NAFTA. Before NAFTA: The New York Convention was ratified in 1970 The Panama Convention was ratified in 1978

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Arbitration and mediation developments in Mexico after the NAFTA Agreement Sofía Gómez Ruano

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  1. Arbitration and mediation developments in Mexico after the NAFTA Agreement Sofía Gómez Ruano June, 2010 2022 Committee Houston, Tx.

  2. Before NAFTA • Before NAFTA: • The New York Convention was ratified in 1970 • The Panama Convention was ratified in 1978 • Mexico adopted the UNCITRAL Model Law on International Commercial Arbitration in 1993 • ICC reported between 1988 and 1992 eleven cases involving Mexican parties • Before 1997 no-court annexed mediation NAFTA Court-Annexed Mediation Private Mediation Arbitration Expectations for the future

  3. Before NAFTA • NAFTA was signed in 1992 and entered into force in 1994 including Article 2022: • “Article 2022: Alternative Dispute Resolution • 1. Each Party shall, to the maximum extent possible, encourage and facilitate the use of arbitration and other means of alternative dispute resolution for the settlement of international commercial disputes between private parties in the free trade area. […]” NAFTA Court-Annexed Mediation Private Mediation Arbitration Expectations for the future

  4. Before NAFTA • Court annexed mediation (1993-2010): • 1997: Enactment of Mediation Law for the State of Quintana Roo (Alternative Justice) • 2001 - 2006: ABA / USAID Mediation Project in Mexico. The project supported 17 Court-Annexed Mediation Programs around the country. • 2010: 22 States have a mediation law or a law on alternative dispute resolution methods: • Aguascalientes, Baja California, Chiapas, Chihuahua, Coahuila, Colima, Distrito Federal, Durango, Guanajuato, Hidalgo, Jalisco, Morelos (for criminal matters), Nuevo León, Oaxaca, Quintana Roo, Querétaro, Sonora, Tamaulipas, Tlaxcala, Veracruz, Yucatán and Zacatecas. NAFTA Court-Annexed Mediation Private Mediation Arbitration Expectations for the future

  5. Before NAFTA In contrast, private mediation has not evolved as expected. The adoption of the UNCITRAL Model Law on International Conciliation is pending. NAFTA Court-Annexed Mediation Private Mediation Arbitration Expectations for the future

  6. Before NAFTA • Pillars for the development of arbitration: • Legal Framework • Mexico adopted the UNCITRAL Model Law and ratified the New York and Panama Convention. • 2008: Constitutional Amendment stating that Mexican laws shall provide ADR • Arbitral institutions • CANACO • CAM (founded in 1997) • Trained arbitrators and lawyers informed about arbitration NAFTA Court-Annexed Mediation Private Mediation Arbitration Expectations for the future

  7. Before NAFTA • A positive attitude of National Courts • In this period of time, the Mexican courts have rendered important decisions: • The arbitrator is not an authority for purposes of the Amparo trial • Arbitration is not unconstitutional • An arbitrator may conduct the proceedings as he/she deems convenient • The award is final and the merits can not be reviewed by a Court NAFTA Court-Annexed Mediation Private Mediation Arbitration Expectations for the future

  8. Before NAFTA • The result. According to 2008 ICC statistics: • 40 Mexican parties in ICC arbitrations • Mexico was place of arbitration 9 times • 30 Mexican arbitrators were appointed • CAM statistics show that: • The number of arbitration cases is increasing • The majority of arbitration cases involve Mexican parties • High rate of voluntary compliance of the award • No arbitral awards have been set aside by Mexican Courts NAFTA Court-Annexed Mediation Private Mediation Arbitration Expectations for the future

  9. Before NAFTA • Amendments to the Mexican Arbitration Law in procedural aspects related to court assistance • Incorporation of the UNCITRAL Model Law on Commercial Conciliation to Mexican legislation NAFTA Court-Annexed Mediation Private Mediation Arbitration Expectations for the future

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