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The new arbitration rules issued by the Mexican Arbitration Center cover an important need in the local arbitration market

Arbitration Commentary Mexico

On December 1, 2022, the Mexican Arbitration Center (CAM) issued its new Arbitration Rules, which will be applicable to certain procedures.

The following arbitrations will be subject to the new CAM rules:

  1. Those that arise from model arbitration clauses signed since December 1st, 2022; and  
  2. Those that arise form an arbitration agreement providing for the application the rules in force at the beginning of a dispute.

The changes included in the new CAM Arbitration Rules (set out in the next diagram) fill gaps and clarify controversial points, thus, undoubtedly contributing to the efficiency of arbitrations.

In addition, the inclusion of a simplified procedure covers an important need in the local arbitration market. In particular, due to the automatic application threshold (unless otherwise agreed) of MXN 3,000,000.00 MXN (approximately USD 160,000) and the option for parties to choose this procedure if suitable for the resolution of their dispute.

Main changes:

Simplified Procedure

This simplified procedure is applicable when the amount in dispute does not exceed MXN 3,000,000.00 or when the parties expressly select it.

The main features of this procedure include:

  • Reduced fees;
  • Reduced terms (15 days);
  • A single exchange of written pleadings from the beginning of the proceedings;
  • The appointment of a sole arbitrator;
  • The submission of witness statements and expert reports preferably in writing; and
  • The holding of a hearing only on an exceptional basis.