International arbitration law and rules in Mexico

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. 

1.1.1 Commercial arbitration has been a fundamental part of the dispute resolution framework in Mexico for over 500 years even though for a long time there was no national arbitration legislation.

1.1.2 As a consequence of Mexico’s international commitments, national arbitration legislation was enacted in the 1980s.

1.1.3 This chapter provides an overview of the legal framework in Mexico for national and international arbitration.

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. During 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, the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1985 (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 America 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 North America Free Trade Agreement, art 2022.

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 Political Constitution of the Mexican United States, art 17.  The Constitution did not expressly recognise the ability 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 resolutions mechanisms other than the legal process administered by the State. 

The new USMCA and other international investment agreements

1.2.7 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 amongst 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. 

1.2.8 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. 

1.3.1 The legislative framework for arbitration in Mexican law includes several domestic and international provisions pursuant to the legal ordinance hierarchy 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 Mexican United States
• International Treaties signed by the Mexican State.
• Code of Commerce.
• Federal Civil Procedure Code. 

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 UNCITRAL Model Law on International Commercial Arbitration of 1985 (amended in 2006).
• 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 1985 (New York Convention).

Code of Commerce

1.3.4 The Code of Commerce is the main legal ordinance that regulates commercial arbitration in Mexico. It provides an exhaustive framework based on the UNCITRAL Model Law and incorporates some 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. 

Federal Civil Procedure Code

1.3.5 The Federal Civil Procedure Code supplements the provisions in the Code of Commerce relating to the execution, recognition and annulment of arbitration awards. 

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 (containing 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.

2.2.1 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. 

2.2.2 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.

2.2.3 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 place of common residence will be taken into account. 

3.1.1 Article 1416, Section I 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”.

3.1.2 The arbitration agreement may be contained in a clause within a contract or in a separate agreement.

3.2.1 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 in any other means of telecommunication that creates a due 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. 

3.2.2 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 proved that the arbitration agreement is null. Although such concept 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.  

3.2.3 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. 

Scope of arbitrability

3.3.1 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. 

3.3.2 The subject of arbitrability has long been discussed in the Mexican legal system. Restrictions on arbitrability are found in specific laws and regulations, both at a local level and at a federal level and throughout criteria and jurisprudence from Mexican Superior Tribunals and 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;
• not affect the public interest; and
• not involve third party rights. 3 Pursuant to the principle of party autonomy and its role as cornerstone of arbitration, any dispute which deals with or affects third party rights will be deemed non-arbitrable, unless there is express consent from the third party.

3.3.3 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. Article 568 of the Federal Civil Procedural Code 4 Article 615 of Mexico City’s Civil Procedural Code sets out several matters that cannot be submitted to arbitration. Similar provisions are often found on the different procedural codes of different states or other local laws.  provides examples of certain matters and disputes that can only be settled by national courts such as disputes or claims concerning land and water resources located within national territory, resources on Mexican exclusive economic zones, acts of authority or related to the internal regime of the state and the internal regime of Mexican embassies and consulates abroad.

3.3.4 Additionally, most family and criminal matters correspond to 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. 

3.3.5 Matters relating to public interest cannot be subject to arbitration. This is mainly aimed at public law, given that the premise of arbitration is that of a dispute resolution mechanism agreed between private parties. Therefore, matters on which the social interest may be harmed must be supervised by State 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 matter and serving as a mechanism to ease the workload of Administrative and State Courts. 

3.3.6 Article 1457 of the Code of Commerce states that any award contrary to the aforementioned, may be invalidated, and its recognition and enforcement be denied in terms of Article 1462 of the Code of Commerce. 

3.4.1 The principle of the autonomy of the arbitration agreement from the main contract, which is equivalent to the principle of separability, is recognised in Article 1416, Section I of the Code of Commerce. 

3.5.1 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. 

3.5.2 An arbitration agreement only creates obligations on the parties to the agreement and is not binding on third parties.

3.5.3 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. 5 Code of Commerce, art 1424. This includes matters that may not be subject to arbitration under Mexican law.

4.1.1 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. 6 Code of Commerce, art 1426.

4.1.2 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. 

4.1.3 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 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). 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. The court or arbitral institution should, so far as possible, ensure equal treatment and reciprocity between all parties.

4.2.1 Pursuant to Article 1429 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. 

4.2.2 The tribunal’s decision can be challenged in court within 30 days and the court’s decision cannot be appealed. The arbitral proceedings will continue with the challenged arbitrator remaining in place pending the court’s decision on the matter. 

4.2.3 When an arbitrator is impeded in fact or by legal mandate 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. 

4.2.4 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. 

4.3.1 Articles 1452 to 1456 of the Code of Commerce contain subsidiary and supplementary 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. 

4.3.2 Arbitration fees consist of: 7 Code of Commerce, art 1416.

• the fees of the arbitral tribunal, including travel and other expenses incurred by them; 
• the costs of the party’s experts or any other expert assistance requested by the arbitral tribunal; 
• the legal fees of the parties; and
• the expenses of any arbitral institution. 

4.3.3 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. 

4.3.4 If the parties fail to agree on the rules to determine the fees of the arbitral tribunal, the Code of Commerce sets out supplementary provisions that will apply. The fees of each arbitrator will be assessed separately by the arbitral tribunal, upon conclusion of the arbitration proceedings (by the issuance of an award or by party agreement) after considering the following:

• The amount involved in the dispute.
• The complexity of the matter.
• Time spent on the dispute.
• Any other relevant circumstance. 

4.3.5 Nevertheless, a party to an arbitration has the right to ask a court to consult and make recommendations and observations to the arbitral tribunal as regards their fees. 

4.3.6 As a general principle, arbitration fees are borne by the unsuccessful party. 8 Code of Commerce, art 1455.  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. 

4.3.7 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. 

4.3.8 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. 

4.3.9 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 to constitute the deposits. 

5.1.1 In principle, the arbitral tribunal is entitled to determine its own jurisdiction and rule on the existence or validity of the arbitration agreement. 9 Code of Commerce, art 1432.

5.1.2 Any party to an arbitration can challenge the jurisdiction of the arbitral tribunal but must do so before filing its statement of defence. Moreover, if at any given moment a party considers that the arbitral tribunal has exceeded its mandate (for example, has gone further than the scope of the arbitration or exceeded its powers), such party is entitled to bring a challenge as soon as the arbitral tribunal decides on such course of action. 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.  

5.1.3 The arbitral tribunal can decide on any of jurisdiction challenges immediately or up until the issue of the award. Nevertheless, if the tribunal rules on its own jurisdiction before issuing an award, any of the parties has 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. 

Unless otherwise agreed by the parties, the arbitral tribunal may grant interim measures regarding the subject matter of the dispute when one of the parties requests it. Furthermore, the arbitral tribunal may also request a guarantee from the party requesting the measures 10 Code of Commerce, art 1433. Although not listed in the Code of Commerce, 11 Articles 279 to 299 of the Federal Civil Procedural Code regulate and list several interim measures which can be imposed by an Arbitral Tribunal. the tribunal has the power to grant the following interim measures:

• Interim measures aimed at maintaining the status quo between the parties or to avoid further aggravating the dispute. 
• Interim measures compelling one of the parties to do something (eg, an order for specific performance of contractual obligations). 
• Interim measures compelling the parties to provide property or money as a guarantee.
• Interim measures purposed to the production of evidence. 
• Interim measures to protect confidentiality, etc. 

Pursuant to Article 1479 of the Code of Commerce, all interim measures ordered by an arbitral tribunal are binding and unless otherwise determined by the arbitral tribunal, such interim measures can be enforced upon request to court. Furthermore, the 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. 

If the arbitral tribunal has yet to demand a guarantee from the party that requests an interim measure, the court to which the request for recognition or enforcement of an interim measure has been addressed can order the requesting party to give a guarantee in order to protect third-party rights. 

Moreover, pursuant to Article 1425, provisional relief can be granted by courts in support of arbitrations, before or during arbitration proceedings at the request of one of the parties. The parties may request that a court grant provisional relief before or during the arbitration proceedings. Upon such request, the court has complete discretion to adopt any interim measures that it may deem appropriate. 12 Code of Commerce, art 1478. Therefore, all types of measure without any limitation are allowed. 

Nevertheless, it should be noted that where any provisional remedy or relief is requested from a court, such requests are made through special legal procedures and the court’s decision can be appealed which may delay the arbitration. 

Equal treatment of the parties

6.1.1 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

6.1.2 Article 1435 of the Code of Commerce provides that the parties enjoy wide autonomy when determining the procedural rules which will govern their arbitration and the arbitral tribunal. 

6.1.3 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. 

6.1.4 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. 13 Code of Commerce, art 1436.

6.1.5 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. 

6.1.6 The parties are free to agree the language or languages to be used in arbitral proceedings. 14 Code of Commerce, art 1438.  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. 

6.2.1 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. 

6.2.2 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. 15 Code of Commerce, art 1439.  The respondent, in turn, shall reply to every point and issue in the claimant’s submission, unless the parties have agreed otherwise. 

6.2.3 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. 

6.2.4 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.

6.2.5 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 if the arbitration will be carried out as a documents-only arbitration. 

6.2.6 The parties must be given due and proper notice of evidentiary hearings or any other hearings that are held by the arbitral tribunal. 

6.2.7 The arbitral tribunal is also obliged to provide the parties with copies of every document submitted by a party in the arbitration, including witness statements, documentary evidence, and expert reports. 

6.2.8 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 the parties to provide the expert with information, or access to goods, property, assets or documentation for inspection, which the expert may need in order to render their opinion either through means of a written report or at an oral hearing. 16 Code of Commerce, art 1442 and art 1443.  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. 

6.2.9 Pursuant to Article 1444 of the Code of Commerce, the arbitral tribunal or any of the parties, after previous consultation and consent from the tribunal, can request assistance from a court for the taking of evidence. 

6.3.1 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. 

7.1.1 The arbitral tribunal shall decide the dispute according to the law chosen by the parties 17 Code of Commerce, art 1445. or by the arbitral tribunal in the event that the parties fail to agree on the applicable 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. 

7.1.2 Arbitrators can act as amiable compositeur only if expressly empowered by the parties to do so. When acting as amiable compositeur, arbitrators are seeking a fair resolution of the dispute without being bound by any specific system or general principles of law.

7.1.3 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. 

7.2.1 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. 

7.3.1 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 make procedural rulings on their own if they are authorised to do so by the parties and the two party-appointed arbitrators. 18 Code of Commerce, art 1446.

7.3.2 The award must be issued in writing and signed by each arbitrator 19 Code of Commerce, art 1448.  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.

7.3.3 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. 

7.3.4 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. 

7.3.5 The parties have the right to settle their dispute and hence terminate the proceeding at any moment before the issuance of an award and request the arbitral tribunal to issue an award in accordance with the terms of their settlement. 20 Code of Commerce, art 1447.  The award containing the settlement will have the same binding effect as that of any award issued by the arbitral tribunal. 

7.4.1 Arbitration proceedings may end through any of the following scenarios:

• Final award
• By order of the arbitral tribunal if:
  • The claimant withdraws the claim, unless there is an objection from the respondent. 
  • The parties agree to end the proceedings (through settlement or for any other reason).
  • The arbitral tribunal proves that the continuation of the proceedings is unnecessary or impossible. 

7.5.1 Within 30 days of the notification of the award, any of the parties can request the arbitral tribunal to: 21 Code of Commerce, art 1450.

• Correct an error of calculation, copying, typographical or any other similar error 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. 

7.5.2 Within 30 days from the date the award was notified to the parties, any of the parties can request 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. 22 Code of Commerce, art 1451.  If the tribunal deems it justified, it shall issue a complementary award within 60 days. 

7.5.3 The arbitral tribunal may extend the timeframe for issuing corrections, interpretations or complementary awards if necessary.

7.5.4 Any corrections, interpretations or complementary awards shall be made in the same terms and following the same formalities as if issuing an award. 

The Federal Court’s obligation to decline jurisdiction in favour of arbitration. 

8.1.1 As explained at paragraph 3.5.3 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.

8.1.2 The party who wishes to refer the dispute to arbitration shall request the court in writing to refer the dispute to arbitration. 23 Code of Commerce, art 1464 and 1465.  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. 

8.1.3 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. 

8.1.4 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. 

8.1.5 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 impossible to execute. In applying this measure, the court must follow rigorous criteria, such as, for example, sustaining its refusal to submit the dispute to arbitration if it considers the matter to be of public interest or when it is clear and evident that the matter is not arbitrable. 

Supporting role in procedural matters 

8.1.6 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. 

8.1.7 These matters are resolved by the court through an expedited procedure under Articles 530 to 532 and Articles 534 to 537 of the Federal Civil Procedures Code:

• The party making the application submits a request to the court. 
• The court serves the request on the counterparty and admits any evidence before determining the matter. 
• There is no right of appeal against the court’s decisions. 

8.1.8 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 with the parties on the matter, consult with at least one available arbitral institution and with several capable arbitrators in order to gather a list of possible arbitrators.

8.1.9 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. 

8.1.10 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 4.2 above.  

8.1.11 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 resolution of removal of arbitrators.
• The resolution on the jurisdiction of the arbitral tribunal. 
• The granting of interim measures. 

8.1.12 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. The court will schedule a date for a hearing at which the parties will provide for 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. 

Annulment of the award

8.1.13 As discussed in the following section, in certain circumstances a Federal Court has jurisdiction to annul the award. 

9.1.1 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. 

The procedure for challenging an award is explained at paragraph 8.1.12 above.  

10.1.1 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 by any court or judge. 

10.1.2 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.

10.2.1 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 that:

• any of the parties to the arbitration agreement was legally incapacitated, or the agreement was invalid under the applicable law.
• it was not properly notified of the tribunal’s appointment, or served with the arbitration proceedings, or its ability to exercise its rights was otherwise hindered.
• the award deals with a dispute arising outside of the submission to arbitration or contains decisions that exceed the scope of the arbitration agreement. (Nonetheless, a court can partially recognise and deem enforceable those parts of the award that were subject to the agreement or arose in relation to it, only refusing to recognise and enforce those that arose outside of the arbitration agreement or that exceeded its scope). 
• the composition of the arbitral tribunal or the arbitration procedure was not in accordance with the agreement of the parties or failing such agreement, did not conform to the law of the country in which the award was made. 
• the award is not yet mandatory for the parties or has been declared null or suspended by a judge of the seat of arbitration by being contrary to its laws. 

10.2.2 The recognition or enforcement of an award may also be refused under Article 1462 of the Code of Commerce if the judge determines that pursuant to Mexican legislation the subject matter of the dispute is not arbitrable or the recognition or enforcement of the award is contrary to public interest. 

10.2.3 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.