Cuatrecasas discusses arbitration challenges between Asia and Latin America at Hong Kong Arbitration Week

Strategic sectors in disputes between Asia and Latin America

Alfonso Gómez-Acebo opened the discussion by identifying the main sectors in which disputes arise between companies in the two regions:

• Infrastructure and construction: ports, roads, railways, metro systems and water projects involving Chinese, Korean and Japanese EPC contractors
• Natural resources: copper, lithium, iron ore, oil and gas
• Energy: transmission lines, hydropower projects and renewable energy
• International trade: agricultural products exported to Asia, as well as vehicles, machinery and electronic products imported by Latin America

Legal frameworks governing disputes

Most Latin American jurisdictions have modern arbitration frameworks based on the UNCITRAL Model Law.

Some countries have dualist regimes, with separate rules for domestic and international arbitration, including Argentina, Chile, Colombia and Uruguay, while others, such as Brazil, Mexico and Peru, follow a unified regime.

Most states in the region are signatories to the New York Convention and the ICSID Convention, although there are notable exceptions:

• Brazil: remains outside the ICSID Convention, despite being China’s main trading partner in Latin America
• Ecuador and Honduras: both countries have resumed participation in the ICSID system, in 2021 and 2026, respectively
• Bolivia and Venezuela: both withdrew from ICSID and have not rejoined

Judicial trends and key challenges

Judicial enforcement of awards: Chilean courts show strong deference to arbitration. In June 2026, a Chilean court set aside an international arbitral award for the first time on grounds strictly related to excess of authority, without reviewing the merits of the dispute.

Risk of constitutionalization: Parties that lose arbitration proceedings sometimes bring constitutional protection actions, such as amparo or claims based on due process violations, in an attempt to challenge the merits of awards. This practice continues to raise concerns in certain jurisdictions.

Mexican judicial reform: The 2024 constitutional reform, which replaced the system of judicial appointments with popular elections, has introduced uncertainty over the application of the rule of law. Some practitioners recommend choosing arbitral seats outside Mexico to keep judicial supervision of the arbitration in a foreign jurisdiction.

Bridging civil law and common law cultures

Differences in legal culture: Virtually all Latin American jurisdictions operate under civil law systems. The participation of Latin American and Chinese companies in arbitrations seated in common law jurisdictions, such as Hong Kong or Singapore, can create procedural friction over document production and the cross-examination of witnesses.

One example is the distinction between barristers and solicitors in Hong Kong, a distinction that does not exist in the same way in Latin America.

Efficiency and flexibility: Arbitrators are advised to make use of the procedural flexibility provided for in updated institutional rules, such as the 2024 HKIAC Administered Arbitration Rules, to streamline hearings and avoid unnecessary costs arising from translations into multiple languages or excessively lengthy proceedings.

Hybrid arbitration and mediation mechanisms: Both Chinese and Latin American companies tend to favour pragmatic solutions and negotiated settlements over protracted disputes, fuelling interest in hybrid arbitration and mediation protocols (Arb-Med).

Cuatrecasas’ international arbitration platform

In addition to maintaining physical offices in Beijing and Shanghai for nearly two decades, Cuatrecasas has an Asia Desk based in Spain that covers several practice areas.

Within the International Arbitration Group led by Alfonso Gómez-Acebo, 16 partners based in Spain, Portugal, Peru, Chile, Colombia and Mexico devote their entire professional practice to international arbitration.

The group handles a substantial portfolio of disputes between Asia and Latin America, originating both through its Chinese offices and directly from Spain and its Latin American offices.

Strengthening legal ties between the two regions

The Hong Kong event highlighted the growing importance of international arbitration amid expanding trade and investment ties between Asia and Latin America.

Infrastructure, energy and natural resources projects, together with international trade, give rise to disputes that require not only specialised technical expertise but also a deep understanding of different legal traditions, regulatory environments and business cultures.

The growing participation of Latin American companies in proceedings administered by HKIAC reflects Hong Kong’s importance as a seat for resolving disputes between the two regions.

For Cuatrecasas, the session also highlighted the value of its international arbitration platform, which connects its established presence in China with specialist teams in Spain, Portugal and Latin America.

As investment flows between Asia and Latin America become more complex, the ability to anticipate disputes, select appropriate arbitration frameworks and manage cross-border enforcement challenges will remain essential for companies and their legal advisers.

Key facts

• Event: Hong Kong Arbitration Week 2026, held from 19 to 23 October
• Session: Asian Disputes in Latin America: Trends and Challenges, hosted by Cuatrecasas on 23 October
• Cuatrecasas representative: Alfonso Gómez-Acebo, partner in the Madrid office
• Participants: Kiran Sanghera (HKIAC), Alfonso Gómez-Acebo (Cuatrecasas), Fedelma C. Smith-Ruiz (independent practitioner), Xiongchao Peter Chen (Fangda Partners) and Evaristo Treviño Berlanga (La Nao Consulting)
• Arbitration activity: HKIAC has administered nearly 40 cases involving Latin American parties over the past six or seven years
• Leading jurisdiction: Brazil entered the top ten jurisdictions of origin for HKIAC users in 2025
• Relevant sectors: Infrastructure, construction, natural resources, energy and international trade
• Legal challenges: Enforcement of awards, constitutional actions, differences between civil law and common law systems, and procedural efficiency
• International presence: Cuatrecasas has offices in Beijing and Shanghai and arbitration teams in Spain, Portugal and Latin America

Oct 21