The Portuguese Legal Background & International Arbitration
Enduring legal ties between Lusophone Countries
The fact that the Portuguese Civil Code and Code of Civil Procedure are still in force in the Lusophone countries of Angola, Mozambique, Cape Verde, São Tomé Principe, and Guinea Bissau gives Portugal yet another advantage in terms of selecting a jurisdiction for international arbitration. These countries very closely follow, to this day, the Portuguese Case Law, meaning that Portuguese law is still very much embedded and relevant within their respective legal systems. Although these Lusophone countries have their own distinct identities, these countries still continue to share a strong historical and legal background.
Over the past decades many of the Lusophone countries have had their economies and respective investment opportunities grow substantially. Angola is considered to be one of the world’s top diamond producers as well as having many other investment opportunities in the realm of agriculture, construction and transportation sectors. Mozambique is another example with recently discovered natural gas reserves which has boosted, and is projected to continue to boost, its economy substantially. Macau is home to one of the largest gaming industries in the world, with total yearly revenue of about 28.9 billion US dollars. Among the aforementioned countries, Portugal itself is also quickly recovering from a financial crisis, and has been currently housing many technologically oriented startups due to currently having the lowest operational costs in Western Europe.
Due to the enduring legal ties and the rich economic and investment climate currently present within the Lusophone countries, Portugal poses as a strong platform for the resolution of international disputes. The fact that the legal ties still exist have shown to be a factor when deciding on the execution of bilateral agreements and in legal agreements between Lusophone countries and Portugal. Having a common language also eliminates the need for procedural translations and also ensures the trust amongst parties and arbitrators in dispute resolution.
Aside from this, and as mentioned in previous posts, Portugal is a member of the most important international arbitration conventions including the New York Convention of 1958.
The Commercial Arbitration Centre of the Portuguese Chamber of Commerce and Industry (CCIP), which was established in 1987, and has immense experience in the arbitrations of domestic and especially cross-border disputes involving Portuguese speaking countries.
In next week’s blog post, the fact that Portugal is considered to be a safe and stable jurisdiction and the ways in which this is advantageous to international arbitration will be covered.
If you would like more information or have any questions regarding international arbitration in Portugal, please feel free to download our extensive Guide to Portuguese Arbitration.