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In the modern world, given the volume, as well as the complexity of the corporate contracts and structures, it was inevitable, besides necessary, that the clearance of any controversy between the parts of the contract could be resolved through alternative ways to the ordinary jurisdiction. The international arbitration represents a useful mechanism for the resolution of commercial disputes.

The international arbitration can be either of investment as well as commercial, and both vary diametrically.

Investment Arbitration

An investment arbitration is, essentially, a procedure to solve disputes between foreign investors and the State where the investment was made. It serves as a guarantee, since the investor is not left at the mercy of the own state and its organ of justice, but that there is a forum or independent tribunal before which the controversy is clarified.

The consent of the states to be submitted to an investment arbitration usually outcomes of a treaty celebrated between the states parties (both the state that the investor belongs to, as well as the state where the investment is made)

International Commercial Arbitration

Unlike the Investment Arbitration, the commercial arbitration represents the contrast of the strictly private parties. The state does not involve in this kind of arbitration and thereby varies a lot from the other.

The commercial arbitration is, then, a way for commercial dispute resolution that can arise between the parties with domiciles or residencies in different states, or with relevant points of connection of a foreign legal system.

In conclusion, the simplicity, rapidity, flexibility, neutrality and confidentiality are some of the comparative advantages of the international arbitration before the Courts of Justice. The need of a specialization in matters, that can either be highly technical, has generated the existence of this type of mechanisms.

Ma. Mercedes Castro
Managing Director
García & Bodán
Guatemala