A new Political Constitution approved by all Ecuadorian citizens in a referendum was enacted on October 20, 2008. It contemplates new treatment to domestic and international arbitration. The new constitutional provisions are loaded with strong political anti-arbitration content basically including the following: (i) Constitutional recognition of arbitration has been upheld, but the possibility that the State will agree to arbitration is subject to an authorization from the Attorney General of the State. (ii) As regards international arbitration, it was attempted – unsuccessfully – to prevent the State from being subject to international arbitration by including a constitutional prohibition to enter into international treaties ceding jurisdiction to arbitration venues in contractual or commercial matters. (iii) The concept of extraneous jurisdiction in relation to arbitration contemplated by the former Constitution was eliminated. (iv) The possibility that the State may be subject to regional arbitration venues in Latin America has been established.
Iurgium [previously Spain Arbitration Review]