Arbitration Market Grows in Brazil and Gains International Attention

CAM-CCBC Data Reveal Expansion in New Arbitrations, Surge in Mediations, Significant Increase in Involved Values, and Foreign Parties in 2023

São Paulo, May 2024 – The total value of arbitrations administered by the Center for Arbitration and Mediation of the Chamber of Commerce Brazil-Canada (CAM-CCBC), a pioneering and leading Brazilian institution in administering Alternative Dispute Resolutions (ADRs), grew by 46% in 2023, rising from R$ 9.1 billion in 2022 to R$ 13.3 billion. This data is part of the Facts & Figures 2023 report, which provides an overview of the institution’s activities and reflects trends in the sector in Brazil. The document also reveals an increase and diversification in procedures and the growing presence of foreign parties in processes administered in Brazil.

The number of new cases at CAM-CCBC rose 14% in 2023, increasing from 121 in 2022 to 138 last year. These included 117 arbitrations, 3 emergency arbitrator procedures, 16 mediations, and 2 dispute board initiations. Combining new and ongoing cases, the Center administered 448 arbitrations throughout the year, with an average duration of 21 months per procedure. The average value per dispute also rose from R$ 79.9 million in 2022 to R$ 114.3 million last year.

“We have observed over the years the maturation of the use of appropriate conflict resolution methods in Brazil, which is now internationally recognized for its seriousness, the high quality of its procedure administration centers, and legal security. The data revealed by Facts & Figures reinforce this view,” says Rodrigo Garcia da Fonseca, president of CAM-CCBC. Fonseca, alongside vice-presidents Silvia Rodrigues Pachikoski and Ricardo de Carvalho Aprigliano, has led the Center since May 2023 in a tripartite management.

Global Reach

A statistic reflecting the reach of arbitration conducted in Brazil is the increase in the number of international parties in the procedures. In 2023, cases registered at CAM-CCBC involved parties from 17 different countries, compared to 11 in 2022, representing a 54.5% expansion over the period. These parties came from countries such as China (23.3%), Portugal (22.2%), the United States (13.3%), Germany, and Paraguay (6.7% each), among others.

Last year, 73.5% of the new cases involved multiple parties, both claimants and respondents, totaling 485 parties. The sectors with the highest number of cases were Construction and Infrastructure (19.66%), Energy (13.68%), Banking and Finance (12.82%), Real Estate (7.69%), and Food and Beverage (5.98%).

“The significant increase in the presence of international parties in arbitrations in Brazil reflects not only growing confidence in the effectiveness of our system but also the increasing complexity and interconnectedness of businesses in an increasingly globalized world,” emphasizes Aprigliano.

Rise in Mediations

Another important highlight of the report was the significant increase in the number of commercial mediations. They tripled between 2022 and 2023, rising from five new cases to 16 over the period. In 2023, the mediations initiated at the institution totaled R$ 342 million. The method is gaining adherents both for resolving new conflicts and as a resource chosen during arbitration procedures, often reducing the total time of arbitrations.

From 1998 to 2023, CAM-CCBC has administered 113 mediations, involving various business sectors such as infrastructure, energy, equity participation, food and beverages, insurance, and professional services.

“The growing number of mediations indicates a gradual and significant shift in the approach to resolving legal conflicts, highlighting the search for tiered and efficient solutions in a collaborative environment, where agility and transparency are increasingly valued,” highlights Silvia.

Diversity

Facts & Figures also reveals CAM-CCBC’s strong commitment to diversity, especially gender equality. On the institution’s List of Arbitrators, women are gaining more space and already represent 35% of the total 196. According to the report, almost 74% of the appointments made last year were women. The same movement for greater representation is occurring with the selection of members of the List of Arbitrators who serve on special committees responsible for deciding on challenges.

Facts & Figures is an annual publication by CAM-CCBC aimed at promoting transparency in its procedures, disseminating its activities, and, in this latest edition, the institution’s new governance structure.

About CAM-CCBC

The Center for Arbitration and Mediation of the Chamber of Commerce Brazil-Canada  (CAM-CCBC), founded in 1979, is a pioneering Brazilian institution in administering Alternative Dispute Resolutions (ADRs). The largest chamber in the sector in Brazil and responsible for a significant share of the arbitrations that take place in the country, involving national and foreign parties, CAM-CCBC also holds ISO 9001 quality certification. At the end of 2023, CAM-CCBC reached the historic milestone of 1,544 arbitrations administered.

Press Contact (CAM-CCBC):

Cangerana Comunicação

Silvia Pimentel: +55 (11) 97615-3134 – [email protected]

Alessandra Taraborelli: +55 (11) 99631-1606 – [email protected]

Estela Cangerana: +55 (11) 99153-1122 – [email protected]