International arbitration in 2025

By Nigel Blackaby KC, Yuri Mantilla, Matheus Bastos Oliveira and Gabriela Jung

In brief

São Paulo is emerging as a new contender among the traditionally preferred international arbitration seats of Paris, London, Geneva, New York and Singapore particularly where large Brazilian corporates are involved. With its pro-arbitration legal framework,  and local offices of leading international institutions such as the ICC, São Paulo is increasingly being selected over those traditional seats for international cases with a Brazilian angle.  This trend has multiple implications, with the most notable being the increasing internationalization of arbitrations seated in Brazil.

Looking ahead, this trend is expected to drive greater participation by foreign actors and international practices in Brazil’s arbitration procedures, fostering growth and enhancing the sophistication of the Brazilian arbitration landscape.

Looking ahead: the impact on arbitral practice

In our experience, the internationalization of arbitration in Brazil has driven key changes in the following areas:

Language of the procedure: in cross-border negotiation and disputes involving parties from countries with different languages, such as Chinese and Portuguese, English is overwhelmingly selected as the default common language. This preference is increasingly prominent in international arbitrations, including those seated in Brazil, as foreign parties seek neutral linguistic ground. As Brazil attracts more international players in arbitration, the use of English in these proceedings is expected to rise further. Our team participated in a major international arbitration this year under Brazilian law with a São Paulo seat where the proceedings were conducted in English and two of the three arbitrators (including the chair) were non-Brazilian.

Arbitrator selection: a hallmark of international arbitrations is the diversity of arbitrators’ nationalities. In cross-border disputes, parties often prioritize diversity when selecting arbitrators, considering factors such as cultural and legal backgrounds and experience in handling international cases. In arbitrations under Brazilian law, foreign parties often prioritize arbitrators’ nationality and international experience, valuing familiarity with diverse legal traditions and cross-border complexities over detailed knowledge of Brazilian law. This preference, coupled with an already-stretched pool of available local arbitrators, has increased the number of tribunals seated in Brazil featuring arbitrators of diverse nationalities, bringing broader perspectives and expertise. Additionally, institutions like the ICC and CAM-CCBC, active in Brazil, include rules that promote the appointment of sole arbitrators and tribunal Presidents who do not share the parties’ nationalities, further encouraging the selection of foreign arbitrators. This emphasis on diverse nationalities is increasingly evident in arbitrations seated in Brazil, highlighting the country’s rising prominence in international arbitration and integrating global perspectives and practices into its dispute resolution framework.

Procedural rules: one of the most notable impacts of arbitration’s internationalization in Brazil is the evolution of procedural rules towards international standards. Given that international arbitration has evolved largely within a common law framework, its procedures often differ significantly from those of Brazil’s civil law system. The growing involvement of foreign parties, arbitrators, experts, and counsel in Brazilian arbitrations has driven a notable shift towards international practices previously uncommon in Brazil. This shift is reflected in the increasing use of written witness statements, the adoption of broader document discovery procedures, and the application of privilege rules different from those traditionally applied to Brazilian counsel. Although specific procedural rules vary based on party agreements and the tribunal’s discretion, this convergence towards international rules is likely to enhance Brazil’s appeal as a venue for resolving cross-border disputes.

Experts and counsel: the internationalization of arbitration in Brazil has also fueled an increased demand for specialized expertise. While Brazilian practitioners are undoubtedly skilled and experienced in handling complex international disputes, the unique challenges of high-stakes cross-border proceedings often necessitate a multi-faceted approach.

Parties have increasingly engaged international experts and counsel in addition to their local counsel. This international perspective can add valuable insights and experience with diverse legal systems, procedural norms and customary international standards, and may be more familiar with arbitrators from varied cultural and legal backgrounds.

This increasing collaboration between leading Brazilian and international law firms generates synergies that foster a deeper understanding of the nuances of both Brazilian and international practices, ultimately enhancing the quality of legal representation and facilitating the effective resolution of complex cross-border disputes. This trend underscores the growing connection of the global arbitration community and highlights the value of cross-border collaboration in navigating Brazil’s internationalized arbitration landscape. Unlike some other jurisdictions, the sophistication of the Brazilian arbitration bar usually results in a true partnership of equals where each firm focuses on areas where they add most value and both firms are involved in designing overall case strategy. 

Our team has significant expertise resolving disputes in Brazil. Please reach out to us if you would like to discuss in the context of your business.