{"id":285669,"date":"2025-03-27T11:00:00","date_gmt":"2025-03-27T10:00:00","guid":{"rendered":"https:\/\/dailyjus.com\/?p=285669"},"modified":"2025-04-15T18:19:06","modified_gmt":"2025-04-15T16:19:06","slug":"2024-arbitration-year-in-review-argentina","status":"publish","type":"post","link":"https:\/\/dailyjus.com\/index.php\/2025\/03\/27\/2024-arbitration-year-in-review-argentina\/","title":{"rendered":"2024 Arbitration Year In Review – Argentina"},"content":{"rendered":"\n
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This article was featured in Jus Mundi<\/a>‘s 2024 Arbitration Year in Review<\/strong>, in collaboration with VYAPs, a yearly collection of articles from jurisdictions all around the globe updating you on arbitration-related developments from the previous year.<\/p>\n\n\n\n

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Download now<\/a><\/div>\n<\/div>\n<\/blockquote>\n\n\n\n
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THE AUTHOR:<\/strong>
Renzo Favilla, <\/strong>Legal Counsel at the National Directorate of International Affairs and Disputes <\/strong>of the Argentine Treasury Attorney General\u2019s Office<\/strong><\/p>\n\n\n\n

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Introduction<\/strong><\/h2>\n\n\n\n

In 2024 the Argentine Congress enacted Law No. 27,742 of Basis and Points of Departure for the Freedom of Argentines (Ley de Bases y Puntos de Partida para la Libertad de los Argentinos<\/em><\/a> in Spanish) containing a series of reforms to different aspects of the Argentine regulatory framework, including matters of taxation, labor, mining, energy, among others.<\/p>\n\n\n\n

This law also created a regime for the promotion of large investments (R\u00e9gimen de Incentivo para Grandes Inversiones – \u201cRIGI\u201d after its acronym in Spanish) to provide tax, customs, and incentives for investments over USD 200.000.000 in specific economic sectors designated by law, which must meet minimum thresholds in terms of amounts invested. Among its objectives are the ‘promotion of economic development’ and to ‘encourage significant national and foreign investments in the Argentine Republic to ensure the country’s prosperity’ (Article 166, Law No. 27,742<\/a>). The regulations that apply to RIGI also include the Decree 749\/2024<\/a>, designating the Ministry of Economy as the Enforcement Authority and determining the procedures to the access to the regime, and Decree 1028\/2024<\/a>.<\/p>\n\n\n\n

According to the Ministry of Economy, ‘RIGI is a long-term tool for new projects or expansions of pre-existing projects that represent significant investments for the national economy that would otherwise not be developed.’ (Press Release of the Ministry of Economy, January 2025<\/a>).<\/p>\n\n\n\n

Under RIGI, a Special Purpose Vehicle (\u201cSPV<\/strong>\u201d), may submit a project to enter the regime and, once approved by the Enforcement Authority, grants the rights established in Law No. 27,742<\/a>. The RIGI also establishes sanctions and penalties for SPVs that do not comply with the requirements, for example, for omissions or inaccuracies in the information submitted to the Enforcement Authority, or for failing to make the investments in the time frame set.<\/p>\n\n\n\n

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Dispute Settlement in the RIGI<\/strong><\/h2>\n\n\n\n

In addition to the substantive benefits granted to SPVs, Law No. 27,742<\/a> determines that all disputes between the National State and SPVs in connection to an approved investment shall be resolved by arbitration, or other dispute settlement mechanisms.<\/p>\n\n\n\n

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Cooling-Off Period<\/strong><\/h2>\n\n\n\n

According to regime, the parties shall resolve the dispute, in a first instance, ‘through consultations and friendly negotiations’ (Article 221, Law No. 27,742<\/a>) during a cooling-off period<\/a> of sixty days from the date of the SPV’s trigger letter<\/a>, which shall be directed to the Enforcement Authority with copy to the Treasury Attorney General\u00b4s Office of Argentina. This tier is commonly included in dispute settlement mechanisms of investment legislation of other States, such as Sierra Leone<\/a>, Rwanda<\/a>, or Belarus<\/a>.<\/p>\n\n\n\n

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Dispute Resolution Avenues<\/strong><\/h2>\n\n\n\n

Without entering into the debate of the consent to arbitration<\/a>, the regime provides that if the dispute cannot be resolved amicably, three arbitration alternatives are present. According to the dispute settlement provisions in RIGI, the avenues indicated are:<\/p>\n\n\n\n