The new Conciliation and Arbitration Law (No. 708) was passed on June 25, 2015.
The Bolivian government has promoted this law as part of its efforts to encourage foreign investment under fair conditions and with clear rules. Passage of the law was accompanied by an announcement by the Private Business Confederation of Bolivia of USD 3 billion in investments in various sectors of the Bolivian economy.
In consonance with the government’s position, the presidents of the Association of Banks (Asoban) and of the farm producers association Cámara Agropecuaria del Oriente (CAO) noted that the law will increase investment in Bolivia.
The law particularly supports arbitration as a dispute settlement mechanism, but excludes certain controversies from its sphere of application. The exceptions include administrative agreements and conflicts related to natural resources. In the latter case, the Bolivian Constitution already prohibited subjecting disputes deriving from oil and gas sector production activities to international arbitration.
In general, government agencies can arbitrate disputes with companies not domiciled in Bolivia.
Contact
Gerardo Villagómez: gvillagomez@ferrere.com