Entering into effect on 26 March, 2004, Spain’s latest Arbitration Act – also known as Law 60/2003 on Arbitration – heralds a new age in the Spanish arbitration regime. It has been drafted to meet the increasing demands of international commercial players who opt for arbitration as a method of dispute resolution. Membership of the European Union (EU), together with globalisation, have propelled Spain and Spanish commercial interests onto the international playing field, increasing its business community’s need to find a dispute resolution method that is cost-efficient, flexible, expeditious and, not least, attractive to actors from both civil and common law traditions. Although Spain’s previous arbitration law, Law 36/1988 on Arbitration, which is repealed by the act, did provide a framework, it was found wanting as arbitral practice, both at a domestic and international level.
To remedy this lacuna the UNCITRAL model law on international commercial arbitration was chosen as the basis for the act. The act also takes on board some of UNCITRAL’s more recent work, such as the arbitrators’ power to order interim measures, as outlined in Article 23, as well as developments in jurisprudence generally. In addition it regularises domestic law with international commercial arbitration. The result is that Spain is now a suitable and attractive seat of international arbitration, especially given their shared linguistic, cultural and historical ties for commercial actors doing business in Latin America.
