THE ARBITRATION CENTER OF MEXICO

As has been the case with the international community at large, arbitration has become a favored alternative dispute resolution method in Mexico, particularly with respect to international contracts. In a first groundbreaking attempt to develop arbitration in Mexico, the Mexican Congress adopted the UNCITRAL model law in 1993.

Filling a gap created by an increased demand for arbitration, an institution devoted to the administration of commercial arbitration proceedings in Mexico was established in September, 1997. The institution was named the Arbitration Center of Mexico (Centro de Arbitraje de México, the "CAM") by its founders, a young group of professionals with extensive arbitration experience in international institutions such as the Court of Arbitration of the International Chamber of Commerce (ICC). In addition, some members have worked within Mexico's judicial system.

For parties seeking to resolve their private commercial disputes, CAM arbitration offers substantial advantages. Some of them are listed bellow:

• Speediness: CAM arbitration proceedings are speedier than those brought before regular courts. In addition, the award is not subject to appellate proceedings.
• Legal Security: the award is final and has the same legal force as a court decision, and the New York Convention of 1958 allows for enforcement of Mexican awards in foreign countries.
• Specialization: the arbitrators appointed by the CAM are specialized in the disputes submitted to them.
• Independence and Impartiality: both the CAM, and the arbitrators designated by it, are totally independent and impartial.
• Confidentiality: all CAM arbitration proceedings are confidential.
• Cost: speediness and the legal security afforded by it, make arbitration proceedings considerably less costly than judicial proceedings.
• Effectiveness: the professionalism of CAM's personnel frequently lead the parties to resolve their disputes amicably before any award is rendered.

Although the CAM is fully capable of administering cases involving foreign parties, the CAM's main objective is to develop arbitration in Mexico, and to administer domestic arbitration proceedings between Mexican parties. Seminars and conferences are often organized to contribute to this effort (one such seminar took place in January 1998).

The CAM may also act simply as an appointing authority. In other words, the CAM may appoint an arbitrator in a case to be resolved under either ad hoc or another institution's arbitration rules. To fulfill this function, the CAM has an extensive database of potential arbitrators specialized in different areas of expertise. All interested in being included in this database are welcome to send their resume to the offices of the CAM, which are located at:

World Trade Center
Montecito 38-14th floor, office # 38
Colonia Nápoles
03810 Mexico, D. F.
Tel/fax: (525) 488-0436 or 488-0437
e-mail: camex@data.net.mx
Website: http:/www.camex.com.mx

The CAM's offices at the World Trade Center offer many advantages, including location, modern communications facilities, meeting room availability, etc.

The CAM functions through a General Council and a Secretary General:

• The General Council is mainly involved in the designation and removal of arbitrators, and in the scrutiny of the arbitral award.
• The Secretary General is chiefly in charge of the day to day administration of arbitral proceedings before the CAM.

To have recourse to CAM arbitration, parties should include an arbitration clause in their contracts, which could read as follows:

"All disputes arising out of, or in connection with the present contract shall be finally settled under the Rules of Arbitration of the Arbitration Center of Mexico (CAM) by one (three) arbitrator(s)s appointed in accordance with the said Rules".

Parties may also submit their existing disputes to CAM arbitration even in the absence of an arbitration clause in their contract, as long as they enter into an arbitration agreement thereof.

The CAM Rules are based on the 1998 ICC Rules, which were drafted by arbitration experts from all over the world.

The CAM is committed to the development of arbitration in Mexico, a process triggered by the adoption of the UNCITRAL model law. The CAM offers the option of resolving private commercial disputes in an efficient manner without having to litigate before regular courts. In this respect, we hope that the CAM constitutes a valuable contribution to Mexico's legal environment.

This article was submitted by the Centro de Arbitraje de Mexico.