- HISTORICAL BACKGROUND AND LEGISLATIVE FRAMEWORK
- Legislative framework
- SCOPE OF APPLICATION AND KEY PROVISIONS
- Key provisions
- INSTITUTIONAL ARBITRATION
- Centro de Arbitraje de México (CAM)
- CANACO Arbitration Centre
- ICC Mexico
- THE ARBITRATION AGREEMENT
- COMPOSITION OF THE ARBITRAL TRIBUNAL
- JURISDICTION OF THE ARBITRAL TRIBUNAL
- CONDUCT OF PROCEEDINGS
- ISSUING THE AWARD AND TERMINATION OF PROCEEDINGS
- ROLE OF THE FEDERAL COURTS
- CHALLENGING AND APPEALING AN AWARD THROUGH A FEDERAL JUDGE
- RECOGNITION AND ENFORCEMENT OF AWARDS
jurisdiction
- ADGM
- Australia
- Bosnia and Herzegovina
- Brazil
- Bulgaria
- Chile
- China
- Colombia
- Croatia
- Czech Republic
- DIFC
- England and Wales
- France
- Germany
- Hong Kong
- Hungary
- India
- Ireland
- Italy
- Kenya
- Latvia
- Lithuania
- Luxembourg
-
Mexico
- Montenegro
- Morocco
- Netherlands
- Norway
- Oman
- Peru
- Poland
- Portugal
- Romania
- Saudi Arabia
- Scotland
- Serbia
- Singapore
- Slovakia
- Slovenia
- South Africa
- South Korea
- Spain
- Sweden
- Switzerland
- Turkiye
- UAE
- USA
- Ukraine
In Mexico, the average length of an arbitration is 14 months. By contrast, court proceedings typically take between 18 and 36 months, including appeals and the constitutional (amparo) process.
1. HISTORICAL BACKGROUND AND LEGISLATIVE FRAMEWORK
1.1 Overview
1.1.1 Mexico has developed a robust and arbitration-friendly legal framework that aligns closely with international standards, particularly the UNCITRAL Model Law on International Commercial Arbitration.
1.1.2 The Mexican legal system allows parties significant freedom to determine the rules governing their arbitration proceedings, including the choice of arbitrators, procedural rules, and the applicable substantive law. In the absence of such agreements, the legal framework provides default rules to ensure the fair and efficient conduct of arbitration.
1.1.3 This guide sets out the legal basis for arbitration in Mexico, including the applicable legislative instruments. It explains historical reforms, the scope of application, and key general principles under Mexican law.
1.1.4 Subsequent sections cover the structure and conduct of proceedings, from the arbitration agreement through to tribunal constitution, hearings, and the issuance of the award. The roles of Mexican courts are also addressed, particularly in enforcing agreements, supporting arbitrations, and recognising or annulling arbitral awards.
1.2 Historical background
1.2.1 Commercial arbitration was established as a means of alternative dispute resolution in 1854 in the first Mexican Code of Commerce. The first Civil Procedure Code in Mexico, enacted in 1872, only allowed for arbitration in a very small range of matters. This trend continued in the 1884 Civil Procedure Code and the Code of Commerce enacted in 1899.
The Code of Commerce
1.2.2 The current Code of Commerce entered into force on 1 January 1890. For the first 99 years it was in force, the Code of Commerce had very few references and provisions on arbitration.
The 1989 reform
1.2.3 The first reform to the Code of Commerce regarding arbitration was enacted on 4 January 1989 when some of the provisions of the UNCITRAL Model Law on International Commercial Arbitration of 1985 (amended in 2006) (Model Law), the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (New York Convention), and the Inter-American Convention on International Commercial Arbitration of 1975 (Panama Convention) were adopted. However, the Code of Commerce continued to contain a series of obsolete provisions and the reforms failed to create a more comprehensive legal framework for arbitration.
The 1993 reform
1.2.4 The Code of Commerce was comprehensively reformed on 23 July 1993. The UNCITRAL Model Law was fully incorporated into the Code of Commerce and adapted to fit the Mexican legal system, together with certain principles taken from the UNCITRAL Arbitration Rules (mainly those concerning procedural matters and the fees and expenses of the arbitration). This reform helped bring about and unify the Mexican legal framework for domestic and international arbitration, as prior to the 1993 reform, international arbitration was regulated by international treaties and national arbitration by the provisions of the Code of Commerce.
Enactment of NAFTA in 1994
1.2.5 Under the North American Free Trade Agreement, Mexico, along with the United States of America and Canada, agreed to promote and facilitate the use of arbitration and other means of alternative dispute resolution to resolve international commercial disputes between private parties in the free trade zone in North America. 1
Constitutional reform of 2008
1.2.6 Until 2008, the state had a monopoly over the administration of justice pursuant to the Mexican Constitution. 2 The Constitution did not expressly recognise the right of private parties to engage in alternative dispute resolution mechanisms. This meant that some arbitral awards were challenged before Federal Courts on the grounds of unconstitutionality. The Mexican Supreme Court of Justice recognised that the execution of arbitral awards was not unconstitutional given that they were based on international treaties. This led to a constitutional reform on 18 June 2008, which provided that Mexican laws could establish alternative dispute resolution mechanisms other than the legal process administered by the State. The change was significant as the Mexican Supreme Court subsequently ruled that the right to submit disputes to ADR, including arbitration, is a constitutionally protected right.
The 2011 reform
1.2.7 The 2011 reform of the Commercial Code introduced several important enhancements to Mexico’s arbitration framework. It clarified the obligation of courts to refer disputes to arbitration where a valid agreement exists, strengthened the authority of arbitral tribunals to grant interim measures, and established clearer procedures for judicial assistance in support of arbitration — including the appointment and removal of arbitrators, evidentiary matters, and the enforcement or annulment of awards. These changes improved the enforceability of arbitral decisions and reinforced the principle of limited court intervention, aligning Mexico more closely with international arbitration best practices.
The new USMCA and other international investment agreements
1.2.8 The new free trade agreement between Canada, Mexico and the United States, the United States-Mexico-Canada Agreement (USMCA), was enacted on 1 July 2020 and has maintained the promotion and facilitation of international commercial arbitration among the countries. Nevertheless, under the new Investment Chapter, investment arbitration faces new restrictions, limiting the claims and breaches that allow companies to submit a dispute to arbitration.
1.2.9 Other treaties and international agreements, like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), have maintained a positive and open position towards arbitration.
1.3 Legislative framework
1.3.1 The legislative framework for arbitration in Mexican law includes several domestic and international provisions, in accordance with the hierarchy of legal norms contained in Article 133 of the Federal Constitution and is hence considered a Federal matter. The Federal hierarchy that applies to arbitration is as follows:
- The Political Constitution of the United Mexican States;
- International Treaties signed by the Mexican State;
- The Code of Commerce;
- The National Code of Civil and Family Procedure (the National Code) (which has partially replaced the Federal Civil Procedure Code as of 2024, but will not enter into full force until 2027); and
- The General Law on Alternative Dispute Resolution Mechanisms.
Mexican Constitution
1.3.2 The Mexican Constitution is the main pillar of the legal framework for arbitration as it provides in Article 17 that procedural laws will provide for alternative dispute resolution mechanisms. Article 133 contains the principle of hierarchy of law, which provides that the Federal Constitution is ranked above international treaties and Federal laws.
International Treaties
1.3.3 The legal framework for arbitration in Mexico is supplemented by international treaties. Mexico has signed and ratified the following international instruments in connection with international commercial arbitration:
- The Model Law and The New York Convention.
- The UNCITRAL Arbitration Rules of 1976 (amended in 2010).
- The Inter-American Convention on International Commercial Arbitration of 1975 (Panama Convention).
- The Inter-American Convention on Extraterritorial Validity of Foreign Judgments and Arbitral Awards of 1979 (Montevideo Convention).
- The Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (New York Convention).
- The ICSID Convention (ratified in 2018, entered into force on August 26, 2018).
Code of Commerce
1.3.4 The Code of Commerce is the main legal instrument that regulates commercial arbitration in Mexico. It provides an exhaustive framework based on the Model Law and incorporates many of the principles contained in international conventions. The chapter entitled “Commercial Arbitration” in Book V Title IV is the main source of legal provisions applicable to arbitration.
The National Code
1.3.5 Previously, the Federal Civil Procedure Code supplemented provisions in the Code of Commerce relating to the execution, recognition, and annulment of arbitration awards. However, as of 2024, these procedural aspects are now progressively being replaced in civil law matters by the National Code, which unifies federal and state procedural regimes. Importantly, commercial arbitration remains under the Code of Commerce, while the National Code applies to arbitration of civil matters. Nonetheless, it could be relevant to commercial arbitration in certain specific circumstances, including:
- Supportive proceedings (e.g. interim relief, notifications, judicial cooperation);
- Cross-border civil litigation affecting arbitration; or
- Mixed civil-commercial disputes.
1.3.6 Until full implementation in April 2027, practitioners will need to check whether a federal or local procedural code applies to arbitration-related judicial assistance, as transitional rules remain in force.
General Law on Alternative Dispute Resolution Mechanisms
1.3.7 The General Law on Alternative Dispute Resolution Mechanisms, enacted in 2024, governs conciliation and mediation. It is only relevant to arbitration where contracts include multi-tiered dispute resolution clauses (e.g. mediation before arbitration) or where mediated settlements are involved in arbitration-related proceedings.
2. SCOPE OF APPLICATION AND KEY PROVISIONS
2.1 Scope of Arbitration
2.1.1 As stated above, there are several legal instruments that regulate arbitration in Mexico. The most important is the Code of Commerce.
2.1.2 Book V, Title IV of the Code of Commerce (Articles 1415–1480) regulates commercial arbitration and is structured as follows:
- Chapter I: General provisions;
- Chapter II: Arbitration agreement;
- Chapter III: Appointment of the arbitral tribunal;
- Chapter IV: Jurisdiction of the arbitral tribunal;
- Chapter V: Conduct of the arbitration;
- Chapter VI: Issuing of the award and ending the proceedings;
- Chapter VII: Fees and expenses;
- Chapter VIII: Annulment of the award;
- Chapter IX: Recognition and enforcement of awards; and
- Chapter X: Judicial intervention in commercial transactions and arbitration.
2.1.3 Article 1415 of the Code of Commerce provides that the provisions contained in Book V, Title IV apply to both national and international arbitration, with the exception of any specific rules or provisions contained in any other law or international treaty to which Mexico is a party.
2.1.4 Pursuant to Article 1416, Section III, an international arbitration is one where either:
- The parties to an arbitration agreement have, at the time of concluding the agreement, their places of business in different states; or
- The place of the arbitration, the place where a substantial part of the obligations of the commercial relationship are to be performed, or the place with which the subject matter of the dispute is most closely connected, is situated outside the state in which the parties have their places of business.
2.1.5 If any of the parties has more than one establishment, the establishment to be considered for the purposes of Article 1416 will be the one that has a direct connection with the arbitration agreement. If a party has no establishment, its habitual residence will be taken into account.
2.2 Key provisions
2.2.1 The Code of Commerce is modelled on the Model Law (1985 version), with only minor variations. The 2006 amendments to the Model Law—particularly in relation to interim measures—have not yet been fully implemented in Mexico.
2.2.2 Some key provisions include:
- Recognition of arbitration agreements (Article 1423);
- Default rules on tribunal constitution (Articles 1425–1427);
- Competence of tribunals to rule on their own jurisdiction (Article 1432);
- Tribunal powers regarding interim measures (Article 1433);
- Equal treatment of the parties and due process (Article 1435);
- Recognition and enforcement of awards (Articles 1460–1463);
- Limited grounds for annulment (Article 1457).
2.2.3 Mexican courts interpret these provisions in line with UNCITRAL Model Law principles, often referring to UNCITRAL case law or commentary in decisions.
3. INSTITUTIONAL ARBITRATION
3.1 The institutions
3.1.1 Arbitration in Mexico may be conducted on an ad hoc basis or administered by an arbitral institution. The most widely used arbitral institutions in Mexico are:
- The Centro de Arbitraje de México (the CAM);
- The Centro de Arbitraje de la Cámara de Comercio de la Ciudad de México (the CANACO); and
- The International Chamber of Commerce (the ICC Mexico).
3.1.2 The parties are free to agree on the rules applicable to the arbitration proceedings, including the adoption of institutional rules. Institutional rules are fully enforceable provided they do not conflict with the mandatory provisions of the Commercial Code.
3.2 Centro de Arbitraje de México (CAM)
3.2.1 CAM is a private institution based in Mexico City. It has a modern set of arbitration rules that were significantly revised in 2022. The CAM Arbitration Rules 2022 incorporate a number of procedural mechanisms that align closely with international standards.
3.2.2 Key features of the 2022 CAM Rules include:
- Emergency arbitrator (Article 30): Allows parties to apply for urgent relief before the tribunal is constituted;
- Multiparty default rules (Article 16): Permits CAM to appoint the full tribunal if the parties cannot agree;
- Expedited procedure (Appendix III): Applies to cases whose value does not exceed MX$ 3 million (approximately USD $150,000), or where the parties so agree;
- Challenge procedure (Articles 13–15): Comprehensive mechanism for challenging arbitrators, resolved by the CAM Secretariat;
- Timetabling and management: The tribunal is empowered to issue procedural timetables and case management orders.
- Remote hearing and electronic communications: The rules now expressly confirm that hearings may be held remotely or in a hybrid manner, and that notices may be made by electronic means.
3.2.3 CAM’s rules make it a suitable choice for commercial clients seeking a bilingual and efficient arbitration centre with strong administrative support. CAM is especially suitable for mid- to high-value commercial disputes seated in Mexico City.
3.3 CANACO Arbitration Centre
3.3.1 CANACO’s Arbitration Centre is attached to the Mexico City Chamber of Commerce. It is one of the oldest arbitral institutions in Mexico, primarily used by domestic businesses. Its rules are simpler and often better suited for small to medium-sized commercial disputes.
3.3.2 The CANACO rules do not include an emergency arbitrator procedure. Appointment mechanisms are similar to those in the Commercial Code, with the Secretariat intervening if parties default.
3.3.3 While CANACO is generally efficient, delays may arise in complex multiparty cases where the Secretariat lacks authority to appoint arbitrators in the absence of consensus. For high-value or cross-border disputes, the CAM or ICC are usually preferred.
3.4 ICC Mexico
3.4.1 The International Chamber of Commerce (ICC) Mexico is the Mexican chapter of the global ICC. It administers arbitrations under the ICC Rules, which were most recently revised in 2021.
3.4.2 Key features of the ICC Rules include:
- Scrutiny of draft awards by the ICC Court;
- Appointment and challenge procedures managed by the ICC Secretariat;
- Emergency arbitrator provisions;
- Clear provisions on joinder and consolidation;
- Strong enforcement track record globally.
3.4.3 The ICC Rules are regularly used in large-scale infrastructure, energy, and M&A disputes involving Mexican parties or assets.
4. THE ARBITRATION AGREEMENT
4.1 Definition
4.1.1 Article 1416 of the Code of Commerce defines an arbitration agreement as: “the agreement whereby the parties decide to submit to arbitration all or certain controversies that arise or may arise between them in connection with a legal, contractual or non-contractual relationship”.
4.1.2 The arbitration agreement may be contained in a clause within a contract or in a separate agreement.
4.2 Formal requirements
4.2.1 An arbitration agreement must be in writing. The agreement can be contained in a document signed by the parties, or in an exchange of letters, telex, telegram, fax or any other means of telecommunication that creates a reliable record of the agreement. The existence of an arbitration agreement will also be presumed if one party proposes to submit a dispute to arbitration through the filing of a claim or remedy and the other party does not expressly deny it when answering the claim or remedy.
4.2.2 Moreover, the Code of Commerce establishes that whenever a claim subject to an arbitration agreement is filed before a judge or court, the judge or court has to refer the matter to an arbitral tribunal, unless it can be shown that the arbitration agreement is void. Although this principle has been upheld by major tribunals, it is standard practice to include an express waiver of the right to file a claim before a court or tribunal when drafting an arbitration clause, as the absence of an express waiver may be subject to the interpretation of a judge or court or used by a party as a dilatory strategy.
4.2.3 In the arbitration agreement, the parties may decide the seat of arbitration, the institution and rules that will conduct the proceedings, the applicable law for resolving the dispute, and the procedure for appointing the tribunal.
4.3 Arbitrability
4.3.1 As a general rule, pursuant to the Code of Commerce, arbitration is a dispute resolution mechanism of a commercial nature. This is important given that there are certain matters that cannot be subject to arbitration.
4.3.2 Restrictions on arbitrability are found in specific laws and regulations, both at a local level and at a federal level, and in jurisprudence of the Mexican courts. In order for a dispute to be arbitrable it must:
- not be specifically excluded from arbitration by law;
- not concern matters of public interest; and
- not involve third party rights. 3
4.3.3 Mexican legislation does not provide a comprehensive list of matters expressly excluded from arbitration. However, as a general principle, certain matters are expressly reserved for the jurisdiction of Mexican courts.
4.3.4 Under Article 540 of the National Code, certain matters may not be submitted to arbitration under any circumstances. These include:
- the right to receive food;
- rights of cohabitation, guardianship, and custody;
- civil status and nullity of marriage;
- actions affecting the status of children or adolescents;
- and any matter expressly prohibited by law.
4.3.5 While these restrictions apply to civil and family matters and are not applicable to commercial arbitration, they are good indications of what is and is not arbitrable. While the National Code does not replace the previous national sovereignty exclusion once stated in the repealed parts of Federal Code of Civil Procedure, those principles remain recognised in doctrine and jurisprudence as limits on arbitrability under Mexican constitutional and public international law.
4.3.6 Additionally, most family and criminal matters fall within the exclusive jurisdiction of national courts and are therefore not arbitrable. Certain other matters cannot be submitted to arbitration even though there is no express prohibition regarding their arbitrability. For example, antitrust claims are not arbitrable because they involve the public interest.
4.3.7 The public interest exception is underpinned by principles of public law, given that the premise of arbitration is a dispute resolution mechanism agreed between private parties. Therefore, matters on which the social interest may be harmed must be supervised by the Mexican courts. Examples of such matters include taxation, labour, administrative proceedings, and public law in general. Nevertheless, arbitration agreements have begun to be used in public contracts, as arbitration is considered to be an effective way of resolving disputes arising from such contracts in an impartial and neutral manner and serving as a mechanism to ease the workload of Administrative and State Courts.
4.3.8 Article 1457 of the Code of Commerce states that any award contrary to the aforementioned exceptions to arbitrability may be invalidated, and their recognition and enforcement be denied in terms of Article 1462 of the Code of Commerce.
4.4 Autonomy of the arbitration agreement
4.4.1 The principle of the autonomy of the arbitration agreement from the main contract (equivalent to the principle of separability) is recognised in Article 1416, Section I of the Code of Commerce.
4.5 Legal consequences of a binding arbitration agreement
4.5.1 Where there is a binding arbitration agreement, the parties are obliged to refer their dispute to an arbitral tribunal pursuant to the terms of their arbitration agreement and the courts must decline jurisdiction over that dispute if requested by one of the parties. An arbitration agreement only creates obligations on the parties to the agreement and is not binding on third parties.
4.5.2 Moreover, courts and tribunals have the general obligation to protect and enforce arbitration agreements signed by the parties to a dispute. If a party to an arbitration agreement commences court proceedings in relation to a dispute covered by an arbitration agreement, the other party can ask the court to refer the dispute to arbitration. The court can only refuse to submit the dispute to arbitration if it is proven that the arbitration agreement is invalid (nullified) or impossible to enforce. 4 This includes matters that may not be subject to arbitration under Mexican law.
5. COMPOSITION OF THE ARBITRAL TRIBUNAL
5.1 Constitution of the arbitral tribunal
5.1.1 Pursuant to Articles 1426 and 1427 of the Code of Commerce, the parties are free to appoint the arbitrators in their arbitration agreement or provide for a mechanism for the appointment of the tribunal, either directly or by reference to arbitral or procedural rules. If the parties fail to agree on the number of arbitrators, the Code of Commerce provides that a single arbitrator will be appointed. 5
5.1.2 Where the arbitration agreement requires three arbitrators to be appointed but does not specify the appointment procedure, each party will appoint one arbitrator and the two party-appointed arbitrators will appoint the third. If a party fails to appoint an arbitrator within 30 days of receiving notice from the counterparty requiring it to appoint an arbitrator, or if the two party-appointed arbitrators do not agree on the appointment of the third arbitrator within 30 days of their appointment, either party may request a court to appoint the third arbitrator.
5.1.3 Either party may request the court to adopt measures to appoint an arbitrator if one of the parties does not abide by the appointment procedure agreed by them, or the parties or party-appointed arbitrators cannot agree on the procedure to be followed, or if a third party, including an arbitral institution, does not comply with the functions conferred on it by the agreement (unless the arbitration agreement provides that a different procedure shall apply to resolve the issue).
5.1.4 The Code of Commerce contains no specific rules on multi-party arbitration. If the parties have not agreed specific rules for appointing the tribunal in a multi-party arbitration, the general provisions of the Code of Commerce will apply. Where institutional rules apply, such as the CAM Arbitration Rules (2022), default mechanisms are available. For instance, Article 16 of the CAM Rules allows CAM to appoint all members of the tribunal in a multiparty dispute if parties or co-arbitrators cannot agree. The court or arbitral institution should, so far as possible, ensure equal treatment and reciprocity between all parties.
5.2 Procedure for challenging and substituting arbitrators
5.2.1 Pursuant to Article 1428 of the Code of Commerce, the parties can freely agree on the procedure to substitute, remove or challenge arbitrators. In the absence of agreement, if a party wishes to remove an arbitrator, it shall submit an application to the arbitral tribunal within 15 days of becoming aware of the applicable ground(s) for removal. The grounds for removing an arbitrator include impartiality or lack of independence, or that the arbitrator does not possess the agreed qualifications. The arbitral tribunal will determine the application unless the challenged arbitrator resigns, or the other party concedes the application.
5.2.2 Article 1429 provides that if an arbitrator is challenged and the challenge is unsuccessful, the challenging party may request local courts to resolve in a final manner such challenge. The arbitral proceedings will continue with the challenged arbitrator remaining in place pending the court’s decision on the matter.
5.2.3 When an arbitrator is impeded in fact or law from executing their functions, or, due to other reasons, does not perform their functions within a reasonable timeframe, the arbitrator’s appointment will cease by renunciation or party agreement. In the event of disagreement, either party may request a court to order the removal of the arbitrator and the court’s decision cannot be appealed. 6
5.2.4 In the event that an arbitrator ceases their functions due to any legal or factual impediment, the parties will proceed to appoint a substitute arbitrator in accordance with the procedure through which the substituted arbitrator was appointed. 7
5.3 Arbitration fees
5.3.1 Articles 1452 to 1456 of the Code of Commerce contain provisions regarding arbitration fees, which will apply only if such provisions are expressly chosen by the parties or if they have failed to agree upon any other rules for the allocation and payment of fees and other expenses.
5.3.2 Arbitration fees consist of: 8
- fees of the arbitral tribunal, including travel and other expenses incurred by them;
- costs of the party’s experts or any other expert assistance requested by the arbitral tribunal;
- legal fees of the parties; and
- fees and expenses of any arbitral institution.
5.3.3 Article 1452 of the Code of Commerce establishes that the parties have the freedom to adopt directly, or through reference to certain rules of arbitration, the rules related to arbitration fees.
5.3.4 According to Article 1456 of the Code of Commerce, if the parties to an arbitration agreement have not agreed on the arbitrators' fees, the arbitrators may request the intervention of the courts to fix the amount of their fees. Once the amount of the fees has been fixed by the court, the parties are obligated to pay the fees in accordance with the court's decision. If one party fails to pay its share of the fees, the other party may make the payment on its behalf and then seek reimbursement from the non-paying party.
5.3.5 As a general principle, arbitration fees are borne by the unsuccessful party. 9 However, the arbitral tribunal may decide which party has the obligation to bear the costs of the arbitration and declare that the fees be borne proportionately between the parties if it is deemed that it is reasonable according to the particular circumstances of the case.
5.3.6 Pursuant to Article 1456 of the Code of Commerce, once the arbitral tribunal is constituted, it has a wide discretion to request each party to deposit an equal sum as an advance payment for its fees and expenses and the cost of any external expert appointed by the tribunal. The tribunal may also request the parties to make additional deposits.
5.3.7 If requested by a party and agreed to by a court or judge, an arbitral tribunal may fix the amount of such deposits or of any additional deposits only after prior consultation with a court or judge, who may intervene and make any observations and clarifications deemed appropriate.
5.3.8 Article 1456 also grants the arbitral tribunal the discretion to suspend or terminate the arbitration if the parties fail to make the required deposits within 30 days of the tribunal’s notice requesting the deposits.
6. JURISDICTION OF THE ARBITRAL TRIBUNAL
6.1 Competence to rule on jurisdiction
6.1.1 Article 1432 of the Commercial Code states that the arbitral tribunal is entitled to determine its own jurisdiction and rule on the existence or validity of the arbitration agreement. This closely tracks Article 16 of the UNCITRAL Model Law. Mexican courts have interpreted it consistently with international standards, confirming the autonomy of tribunals to decide their own jurisdiction and limiting judicial interference.
6.1.2 Any party to an arbitration can challenge the jurisdiction of the arbitral tribunal but must do so before filing its statement of defence. If the tribunal does not exceed its mandate until later on during the proceedings, the complaining party must raise a challenge as soon as the matter arises. The tribunal has a wide discretion to decide upon any challenges brought forward at any later stage if it considers the reasons to be justified.
6.1.3 The arbitral tribunal can decide on any of jurisdiction challenges either at the outset or in the award on the merits. If the tribunal rules on its own jurisdiction before issuing an award, the parties have 30 days after being notified of the arbitral tribunal’s decision to request a court to issue a final and decisive ruling on the matter.
6.1.4 It should be noted that there has been a growing trend among Mexico City civil courts to defer jurisdictional questions to arbitral tribunals in accordance with Article 1432 of the Commercial Code. 10
6.1.5 Furthermore, Supreme Court decision SCJN No. 2025652 (2019) reaffirmed that judicial review of an arbitral tribunal’s jurisdiction should only occur where the arbitration agreement is clearly invalid or manifestly inapplicable. This decision elevated the principle of Kompetenz-Kompetenz (i.e., that the arbitral tribunal has the power to decide whether it has jurisdiction) to a constitutional level in Mexico.
6.2 Power to order interim measures
6.2.1 Unless otherwise agreed by the parties, the arbitral tribunal and local and federal courts may grant interim measures regarding the subject matter of the dispute. Mexican arbitration law did not incorporate provisions that define the types of interim measures that an arbitral tribunal may grant (such as Article 17(2) of the UNCITRAL Model Law). Accordingly, arbitral tribunals (and courts) are allowed complete discretion to grant a myriad of conservatory, preliminary and interim measures of protection and relief (Article 1433 and 1478 of the Code of Commerce), including interim measures:
- aimed at maintaining the status quo between the parties or to avoid further aggravating the dispute.
- compelling one of the parties to do something (e.g., an order for specific performance of contractual obligations).
- compelling the parties to provide property or money as a guarantee.
- compelling the production of evidence.
- to protect confidentiality, etc.
6.2.2 This list was formerly understood to derive from Articles 279–299 of the Federal Code of Civil Procedure, which listed enforceable interim measures and was considered applicable by analogy. The 2024 National Code, which replaced the Federal Code of Civil Procedure, does not reproduce this list and instead provides only general rules on interim relief before courts. These illustrative categories therefore reflect international arbitral practice, but are not codified in Mexican arbitration law. The National Code states at Article 544 arbitral tribunals lack coercive powers and must rely on judicial support for enforcement.
6.2.3 Pursuant to Article 1479 of the Code of Commerce, all interim measures ordered by an arbitral tribunal are binding; however, Article 547 of the National Code states that arbitral tribunals lack coercive powers and must rely on judicial support for enforcement. Furthermore, parties that have requested or obtained the recognition, or the enforcement of an interim measure, shall immediately inform the judge in the event of revocation, suspension, or modification of such measure.
6.2.4 In requesting interim measures from a court, parties must follow the summary proceedings foreseen in Articles 1472 to 1476 of the Code of Commerce. It should be noted that this procedure will introduce time delays, including a 15-day period granted to the defendant to offer a reply and the possibility of a ten-day evidentiary period, should the judge decide that a hearing is necessary.
6.2.5 The arbitral tribunal may require sufficient security from any party in connection with such measures. 11 The court may also require the provision of adequate security where the arbitral tribunal has not yet ruled on such security or where it is necessary to protect the rights of third parties
7. CONDUCT OF PROCEEDINGS
7.1 General procedural principles
7.1.1 Having been inspired by the UNCITRAL Model Law, Mexico’s arbitration law gives parties the freedom to agree on the procedure to be followed by the arbitral tribunal. It is only in the absence of such agreement that the tribunal may conduct the proceedings as it may deem appropriate, provided that the parties are afforded a reasonable opportunity to present their case (Articles 1434 and 1435 of the Mexican Code of Commerce).
Equal treatment of the parties
7.1.2 The application of the principles of equal treatment of the parties and due process is recognised in Article 1434 of the Code of Commerce, which provides that the parties shall be treated equally and given the opportunity to exercise their corresponding rights.
Procedure rules, place of arbitration and language
7.1.3 In the absence of agreement as to the procedural rules which will govern the arbitration, the arbitral tribunal may conduct the proceedings in the way it deems appropriate. This will include determining the rules regarding the admissibility and weight to be attached to evidence.
7.1.4 The parties can freely determine the seat of arbitration. In the absence of agreement, the arbitral tribunal will determine the seat, taking into account the circumstances of the case and convenience for the parties. 12
7.1.5 Unless expressly agreed otherwise, the arbitral tribunal can gather at any place it deems appropriate to render a ruling among its members, conduct a hearing with the parties, their witnesses or experts and examine goods or other assets and documents.
7.1.6 The parties are free to agree the language or languages to be used in arbitral proceedings. 13 In the absence of agreement, the arbitral tribunal will determine the language used. The language chosen by the parties or the tribunal, unless expressly agreed otherwise, is applicable to any documentation filed by the parties, hearings, rulings, decisions, or communications issued by the court. The arbitral tribunal can order any document to be accompanied by a translation into the language or languages agreed by the parties or determined by the tribunal.
7.2 Commencement of arbitration
7.2.1 Unless agreed otherwise, arbitral proceedings are commenced by the submission of an arbitration request or notice by the claimant to the respondent pursuant to Article 1437 of the Code of Commerce.
7.2.2 After the claimant has submitted its arbitration request or notice and the arbitral tribunal has been constituted, the claimant shall set out by means of a written submission the facts, law, merits, and circumstances on which it relies, the issues in dispute and the amount claimed, within the timeframe agreed by the parties or stipulated by the tribunal. 14 The respondent, in turn, shall reply to every point and issue in the claimant’s submission, unless the parties have agreed otherwise.
7.2.3 The parties shall submit any document they consider relevant to the case and refer to such documents in their corresponding submissions and evidence. It is important to note that the Code of Commerce does not deal with discovery and in practice the International Bar Association Rules on the Taking of Evidence in International Arbitration are commonly used.
7.2.4 Unless the parties agree otherwise, either party can amend its claim or reply unless the arbitral tribunal considers that the amendment is detrimental to the procedural timetable.
7.2.5 Pursuant to Article 1440 of the Code of Commerce, unless otherwise agreed by the parties, the arbitral tribunal will have wide discretionary powers to decide whether there will be evidentiary hearings or other oral hearings, or whether the arbitration will be carried out on paper only. The parties must be given due and proper notice of evidentiary hearings or any other hearings that are held by the arbitral tribunal.
7.2.6 All statements, exhibits, expert opinions or other information supplied to the arbitral tribunal by one party must also be shared with the other party.
7.2.7 The arbitral tribunal may appoint one or more experts in order to render an opinion on any matter. Unless the parties have agreed otherwise, the tribunal may request any party to provide the expert with all relevant information, or to produce for inspection or provide access to all relevant documents, goods or other property the expert may need in order to render their opinion, either by means of a written report or at an oral hearing. 15 If requested by the parties, the tribunal may convene hearings for the examination of experts and their testimonies, and the parties will have the right to present their own evidence, experts and testimonies.
7.2.8 Pursuant to Article 1444 of the Code of Commerce, the arbitral tribunal or the parties, after previous consultation and consent from the tribunal, can request assistance from a court for the taking of evidence.
7.3 Procedural Defaults
7.3.1 In the event of a procedural default by any of the parties, the following principles apply pursuant to Article 1441 of the Code of Commerce:
- If the claimant does not submit its claim in accordance with Article 1439 of the Code of Commerce, the arbitral tribunal may terminate the proceedings.
- If the respondent does not submit its reply in accordance with Article 1439 of the Code of Commerce, the arbitral tribunal will continue with the proceedings, without this omission being considered as an acceptance of the claims presented by the claimant.
- If any of the parties does not attend any of the hearings or does not submit evidence to the arbitral tribunal, the tribunal may still issue an award in accordance with any facts or evidence brought forward by the other party or parties to the arbitration and any award issued will still be valid.
8. ISSUING THE AWARD AND TERMINATION OF PROCEEDINGS
8.1 Applicable law
8.1.1 The arbitral tribunal shall decide the dispute according to the governing law chosen by the parties. 16 If the parties do not indicate the law which should govern the merits of the dispute, the arbitral tribunal shall determine the applicable law on the basis of the characteristics and connections of the case to that governing law. Either way, while deciding on the merits of the dispute, the arbitral tribunal must take into account any of the agreements made by the parties and the standard trade usages and customs applicable to the dispute.
8.1.2 Unless expressly agreed otherwise, any reference to the law or ordinance of a particular country refers to that country’s substantive law and not to its rules regarding conflict of laws.
8.1.3 Arbitrators can act as amiable compositeur only if expressly empowered by the parties to do so. This means that the arbitrator is authorized to act without being bound to apply strict rules of law and is free to determine any question that arises for determination in the course of proceedings under an arbitration agreement by reference to considerations of general justice and fairness.
8.2 Timing
8.2.1 There are no specific provisions in Mexican law governing the duration of the mandate of the arbitral tribunal or the making of awards. However, the parties may agree a time limit for the tribunal to deliver the award.
8.3 Form, content and notification of the award
8.3.1 In arbitral proceedings with more than one arbitrator, the tribunal’s decisions shall be made by a majority of the arbitrators unless the parties have agreed otherwise. The chair may decide questions of procedure if so authorised by the parties or by all the members of the arbitral tribunal. 17
8.3.2 The award must be issued in writing and signed by each arbitrator 18 and state the date and place where it was issued. In proceedings with more than one arbitrator, the signatures of the majority will be sufficient for the award to be valid provided that the reason for the omitted signature is stated in the award.
8.3.3 Furthermore, any award issued must be properly reasoned and based on the applicable law and the submitted evidence, unless the award was a result of a settlement between the parties.
8.3.4 After the award is issued by the arbitral tribunal, the tribunal or the arbitral institution must notify the parties of the award by delivering them a signed copy of the award.
8.3.5 The parties have the right to settle their dispute at any point during the arbitral proceedings. The arbitral tribunal will terminate the proceedings and, if so requested by the parties, issue an award in accordance with the terms of their settlement 19 The award containing the settlement will have the same binding effect as that of any award issued by the arbitral tribunal.
8.4 Termination of the Proceedings
8.4.1 Arbitration proceedings may be terminated by any of the following scenarios:
- Issue of the final award.
- By order of the arbitral tribunal if:
- The claimant withdraws the claim, unless there is an objection from the respondent and the arbitral tribunal recognises their legitimate interest in obtaining a final settlement of the dispute.
- The parties agree to end the proceedings (through settlement or for any other reason).
- The arbitral tribunal determines that the continuation of the proceedings is unnecessary or impossible.
8.5 Corrections, Interpretations and Complementary Awards
8.5.1 Within 30 days of the notification of the award, any of the parties can request the arbitral tribunal to: 20
- Correct any calculation, copying, typographical, or similar errors in the award. The arbitral tribunal may on its own account correct any such errors within 30 days from the issuing of the award.
- Provide an interpretation of a specific point of the award if requested by either party. If the arbitral tribunal deems it justified, it will provide the requested interpretation within 30 days following the request. The interpretation will constitute part of the award.
8.5.2 Within 30 days from the date the award was notified to the parties, any of the parties can request (with notice given to the other party) the arbitral tribunal to issue a complementary award in connection with questions and arguments that were raised during the proceedings but that were not determined by the arbitral tribunal. 21 If the tribunal deems it justified, it shall issue a complementary award within 60 days.
8.5.3 The arbitral tribunal may extend the timeframe for issuing corrections, interpretations, or complementary awards if necessary. Any corrections, interpretations or complementary awards shall be made in the same terms and following the same formalities as if issuing an award.
9. ROLE OF THE FEDERAL COURTS
9.1 Jurisdiction of the Federal Courts
The Federal Court’s obligation to decline jurisdiction in favour of arbitration.
9.1.1 As explained at paragraph 4.5.1 above, in the event that a party begins court proceedings in respect of a dispute that is to be referred to arbitration, Article 1424 of the Code of Commerce provides that the court is bound to refer the dispute to arbitration if so requested by the other party, unless it is proven that the arbitration agreement is null, invalid, or considered impossible to enforce.
9.1.2 The party wishing to refer the dispute to arbitration shall request the court to do so in writing. 22 The court must forward the request to the other party and must determine the matter immediately. If the court decides to submit the dispute to arbitration, the court’s ruling will be final and cannot be appealed.
9.1.3 If the court orders that the dispute be referred to arbitration, the court proceedings will be suspended until an award is made in the arbitral proceedings. Once the arbitral tribunal issues its award, the proceedings filed in court can be concluded or withdrawn by the court at the request of any of the parties.
9.1.4 If the arbitral tribunal determines that the arbitration agreement is invalid, or that it lacks jurisdiction, or if the arbitral proceedings are terminated before the dispute has been determined by the tribunal, any of the parties can request the court to lift the suspension and continue the judicial proceedings.
9.1.5 Pursuant to Article 1465 of the Code of Commerce, the court will only refuse to remit the dispute to arbitration where:
- The arbitration agreement was declared null by a previous judgment or award.
- It is proven that the arbitration agreement is null, invalid, or unenforceable. In applying this measure, the court must follow rigorous criteria.
Supporting role in procedural matters
9.1.6 Pursuant to the Code of Commerce, Federal Courts have jurisdiction over procedural matters that are brought before them by the parties, such as:
- The appointment of arbitrators;
- Requests for the taking of evidence; and
- Consultation on arbitrator fees.
9.1.7 These matters were formerly processed under Articles 530–532 and 534–537 of the now-repealed Federal Code of Civil Procedure. As of 2024, such procedures are governed, in relevant parts, by the National Code of Civil and Family Procedure, which is entering into force on a rolling basis until 2027.
9.1.8 The following provisions are of particular relevance for arbitral support matters:
- Article 544 provides that the arbitral tribunal may issue awards for damages or costs, but any enforcement action — including interim coercive measures — must be conducted through the competent court, which retains coercive powers; and
- Article 547 designates the court located either at the seat of arbitration or where the relevant assets are located as competent to assist in all procedural acts not within the tribunal's remit (e.g., enforcement of subpoenas, procedural orders, or measures of constraint).
9.1.9 These court applications are processed through the National Code’s general incidental proceedings framework, which includes provisions on service, evidentiary assessment, and protective measures. However, these mechanisms were not designed specifically for commercial arbitration, and may differ in procedural formality and timelines from the expedited routes previously available under the Federal Code.
9.1.10 The court may follow a different procedure for the appointment of the arbitral tribunal. Under Article 1467 of the Code of Commerce, the court can consult the parties and/or at least one available arbitral institution in order to gather a list of possible arbitrators.
9.1.11 Once the court decides on a list of possible arbitrators, the parties will have ten days to submit any objections or indicate their preferred arbitrators. The court then will appoint the arbitrators in the order of preference indicated by the parties. If no appointment can be made through this method, the court will exercise its discretion to appoint the arbitral tribunal.
9.1.12 The appointment of arbitrators by a court cannot be appealed. However, the parties have the right to request an arbitrator’s removal in the terms of the arbitration agreement or the procedure explained in section 5.2 above.
9.1.13 In addition to the matters explained above, the court has jurisdiction over procedural matters in terms of Article 1470 of the Code of Commerce, such as:
- The jurisdiction of the tribunal, as discussed in section 6.1.
- The granting and enforcement of the interim measures referred to in section 6.2.
- The invalidity of arbitration awards.
9.1.14 The procedure for determining such matters is set out in Articles 1472 to 1476 of the Code of Commerce. Under this procedure, the court will admit the claim and evidence and provide a copy to the respondent, who will have 15 days to provide a response to the claim and evidence of its own. If deemed necessary, the court will schedule a date for a hearing at which the parties will present their closing arguments. If the parties wish to adduce evidence, the court will issue a 10-day extension for submitting and evaluating any evidence provided by the parties. After the hearing the court will issue a final and unappealable resolution.
10. CHALLENGING AND APPEALING AN AWARD THROUGH A FEDERAL JUDGE
10.1 Jurisdiction of the courts
10.1.1 Under Mexican law, an arbitral award is final and binding on the parties as soon as it is issued. There can be no appeal on the merits. The only recourse available is an action for annulment on the limited grounds provided in Article 1457 of the Commercial Code. The parties are otherwise bound by the award and must comply with it without delay.
10.1.2 Institutional rules, including CAM and ICC, reinforce this by stating that awards are final and parties shall be deemed to have waived their right to any form of appeal.
10.1.3 Pursuant to Article 1457 of the Code of Commerce, an award issued by an arbitral tribunal can be annulled by a federal judge in the following scenarios:
- Where the challenging party establishes that:
- Any party to the arbitration agreement was legally incapacitated, or that the agreement is invalid under the applicable law;
- Any party was not properly notified of the appointment of the arbitrators, or the arbitration proceedings, or any other circumstance that may have hindered its ability to exercise its rights;
- The award refers to a dispute arising outside of the arbitration agreement or contains decisions that exceed the scope of the arbitration agreement. Nonetheless, a judge can partially enforce the award in relation to those parts of the award that were subject to the agreement or arose in relation to it, and in contrast, declare as void or nullify those parts that arose outside of the arbitration agreement or that exceed its scope; or
- the tribunal was not appointed in accordance with the requirements of the arbitration agreement or the Code of Commerce, or that the tribunal failed to conduct the arbitral proceedings in accordance with the arbitration agreement or the Code of Commerce; or
- The judge determines that pursuant to Mexican legislation the subject matter of the dispute is not arbitrable or the award is contrary to public interest.
10.1.4 In Amparo Directo en Revisión 7790/2019 23 , the Supreme Court clarified that:
- Courts cannot review the tribunal’s assessment of evidence;
- Equal treatment concerns are only relevant if they amount to procedural violations, not mere dissatisfaction with the tribunal’s evidentiary determinations; and
- Grounds for annulment must be interpreted strictly.
10.1.5 Regarding the “public interest” ground for annulment, which is undefined in the Commercial Code, this has also been applied strictly. SCJN jurisprudence states that public policy refers to fundamental principles of justice, due process, or constitutional order — not ordinary legal rules. Attempts to challenge awards on grounds that contradict ‘public order’ have consistently failed, unless there was a manifest denial of justice.
10.1.6 These decisions align Mexican practice more closely with the UNCITRAL Model Law's restrictive approach to annulment.
10.2 Procedure
The procedure for challenging an award is explained at paragraph 9.1.14 above.
11. RECOGNITION AND ENFORCEMENT OF AWARDS
11.1 Obtaining enforcement of awards
11.1.1 Mexico is a signatory state to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Article 1461 of the Code of Commerce implements Article IV of the New York Convention and provides that any domestic or foreign award will be recognised as binding and enforceable before any court or judge.
11.1.2 Article 1461 of the Code of Commerce establishes that the party which requests before a judge the recognition and enforcement of a national or international award, must supply the judge with the original award (or a certified copy by a public notary) and the original arbitration agreement. If the award is not in Spanish, an official translation must also be provided.
11.2 Resisting recognition and enforcement of an award
11.2.1 Under Article 1462 of the Code of Commerce, the recognition or enforcement of awards can be refused if the party against whom enforcement proceedings are brought proves any of the same reasons as provided for in article 1457 and listed in section 10.1.3 above.
11.2.2 A decision on the annulment, recognition and enforcement of an award can be challenged only on constitutional grounds through constitutional proceedings before a Federal Collegiate Court.
11.2.3 Mexican courts have consistently held that minor procedural defects—such as non-certified copies or formal oversights—do not, by themselves, justify refusal of enforcement, provided the substantive validity of the arbitration agreement and award is established. This reflects a pro-enforcement stance under the New York Convention.
11.2.4 The burden of proof lies on the party resisting enforcement. Unless there is clear evidence of due process violations or public policy breaches, enforcement will typically be granted.
11.2.5 Mexican courts have also confirmed that a foreign award remains enforceable even if subject to annulment proceedings abroad, unless the award has actually been set aside at the seat.